Paytm shares rose recently after, in a recent interaction with analysts, One 97 Communications sounded optimistic about its growth prospects and reasserted its guidance on turning profitable at an operating level next year.
New Delhi: One 97 Communications Limited-owned Paytm will hold a board meeting on December 13 to consider a proposal for a share buyback, the fintech major disclosed to the exchanges.
“Pursuant to Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (“SEBI Listing Regulations”), we wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Tuesday, December 13, 2022 to consider a proposal for buyback of the fully paid-up equity shares of the Company, in accordance with the applicable provision under the Companies Act, 2013 (including the rules and regulations framed thereunder), the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018 (as amended), and other applicable laws,” according to a disclosure from One 97.
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“The management believes that given the Company’s prevailing liquidity/ financial position, a buyback may be beneficial for our shareholders. The outcome of the Board meeting will be disseminated to the stock exchanges after conclusion of the Board meeting on December 13, 2022, in accordance with the applicable provisions of the SEBI Listing Regulations,” the announcement added.
WHAT IS SHARE BUYBACK?
If a company says it decides to go for a share buyback, it means that the company has decided to purchase its own shares from existing shareholders either through a tender offer or through an open market at an offer price that’s usually higher than the market price. It is considered an alternative, tax-efficient way to return money to shareholders.
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Paytm shares rose recently after, in a recent interaction with analysts, One 97 Communications sounded optimistic about its growth prospects and reasserted its guidance on turning profitable at an operating level next year.
“Management stated that the journey to attain operating profitability (EBITDA before ESOP cost) via consistent margin improvement has exceeded its expectations in the past few quarters,” said ICICI Securities after attending the analysts’ meet.
