Paytm Zooms 8% on Share Buyback Proposal; Returns to Shareholders?

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Paytm Zooms 8% on Share Buyback Proposal; Returns to Shareholders?
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the digital wallet company Paytm (NS: PAYT ) were trading 7.3% higher at Rs 545.3 apiece while writing, after jumping to almost 8% on Friday and hitting the session’s high at Rs 547.4 apiece.

The stock zoomed after the company informed in a filing to the exchanges that its board of directors would meet on Dec 13, 2022, to consider a proposal for buyback of the company’s fully paid-up equity shares.

According to Paytm’s management, a share buyback would benefit the company’s shareholders, given the digital payments major’s prevailing liquidity or financial position. As of Sept 30, 2022, the net cash pile of the company stands at Rs 9,182 crore.

If the proposal for share buyback is approved at the board meeting next week, it will be the fintech company’s first share buyback since its listing on the domestic bourses last year.

Since its debut on the Indian stock market in Nov 2021, Paytm’s shares have been declining, giving returns of negative 68% to its shareholders. 

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