Paytm board approves Rs 850-crore share buyback via open market

• ByStartupStory     |    December 14, 2022

Indian digital payments and financial services company Paytm approved buyback of its equity shares from open market. The buyback size of up to Rs 850 crores in an alignment with the Securities and Exchange Board of India (Sebi) regulations, announced by the One97. Paytm is the New Delhi based company that was started in 2010 by Vijay Shekhar Sharma under One97 Communications Ltd. 

Company’s directors and key management will not sell any shares during the buyback period and everyone unanimously voted for the same.The maximum buyback price of Rs 810 per share is roughly 50% higher than the stock’s closing price of Rs 539.50 on the BSE. This is Paytm’s first share buy back of the year. The full buyback of Rs 850 crores with the applicable buyback taxes and the total outlay will be in excess of Rs 1,048 crore.By this achievement Paytm is planning to buy back 10.49 million shares, which represent around 1.62% of its paid-up share capital, as of FY22 end.

“Over the last year, there is clear business momentum, and we are ahead of our plans. Looking at the monetisation opportunities in our core payment and credit business, we feel confident to generate healthy revenues and cash flows to invest in sales, marketing and technology. We value our shareholders and their journey with us in the public markets. I believe that a buyback at this stage will be immensely beneficial for our stakeholders and will drive long-term shareholder value.” said by Vijay Shekhar Sharma, Founder & CEO of Paytm.

The company offers mobile payment services to consumers and enables merchants to receive payments through its QR code, point of sale and online payment gateway offerings.They offer financial services such as microloans to its consumers and merchants. They help customers for the bill payments and money transfer, ticketing services, retail brokerage products and online games.

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