Paytm Share Buyback meeting scheduled for Tuesday has ended and the board has approved the same. As per a BSE filing, digital financial services firm One97 Communications, the company that operates under the Paytm brand, has announced a share buyback worth Rs 850 crore.
This Paytm share buyback, while approved for the value of Rs 850 crore, has been allowed at a maximum price of Rs 810 a piece. This buyback will be executed via the open market route through the stock exchange method. It also expects the entire share buyback process to be completed within six months.
The BSE filing reads, “The approval of the Board be and is hereby granted for the buy-back by the Company of its fully paid-up equity shares having a face value of ₹ 1 (Rupee One only) each (the “Equity Shares”) from the existing shareholders of the Company, pursuant to the open market route through the stock exchange mechanism (i.e., through the Stock Exchanges), at a price not exceeding ₹ 810/- (Rupees Eight Hundred and Ten only) per Equity Share (the “Maximum Buyback Price”) payable in cash, for an aggregate amount up to ₹ 850 crores (Rupees Eight Hundred and Fifty crores only) (the Maximum Buy-back Size”).”
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The Paytm board, as per the BSE filing, has also determined that there is some surplus liquidity that can be applied to buyback of shares in a productive manner. As per the approved rules, the maximum buyback price of Rs 810 per share is 50 per cent premium to the closing price as on the date of the board meeting.
Before the announcement of share buyback by Paytm, Institutional Investor Advisory Services (IiAS) said that the buyback of shares at less than Paytm’s Initial Public Offering (IPO) price of Rs 2,150 a piece, will be in favour of Paytm’s pre-IPO shareholders.
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