Paytm board approves Rs 850 crore buyback; stock slips ~2%

14 Dec 2022 , 10:12 AM

Paytm’s parent company, One97 Communications, announced on Tuesday that the board has approved an open market buyback of up to Rs 850 crore in shares.

The shares will be repurchased at a maximum price of Rs 810 per share, according to the company’s press release. The maximum number of shares that will be bought back is 1,04,93,827, representing approximately 1.62% of the company’s paid-up share capital.

The company will use at least half of the funds set aside for share repurchases. The company announced on December 9 that the board of directors will consider a share buyback.

The announcement is unlikely to have a significant impact on the stock on Wednesday because the buyback is not being conducted through the tender offer route, which allows shareholders to tender shares at a premium.

At around 10.08 AM, Paytm’s counter was quoted at Rs529.60 down by 1.84% from its previous closing of Rs539.50 on the BSE. The scrip opened at Rs548.95 and touched an intraday high and low of Rs548.95 and Rs525.60 respectively.

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