Digital financial services firm Paytm will be considering a share buyback soon. Taking into account the company’s liquidity profile, Paytm’s share buyback may be taken up in an upcoming meeting on December 13, 2022.
“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,” Paytm said in its BSE filing on share buyback.
As per a Bombay Stock Exchange (BSE) filing, Paytm’s board will meet on the mentioned date and consider a proposal for share buyback. A PTI report mentions that as per a latest earnings report, Paytm has a liquidity of Rs 9,182 crore and taking this into account, the board is considering this buyback.
The official BSE filing reads, “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.”
Paytm’s listing on the stock exchange happened in November 2021. However, many analysts believe that it did not perform as well as it promised. Even last month, as per PTI, Paytm’s share touched an all-time low of Rs 441.