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

Paytm Board on Tuesday unanimously approved buyback of its equity shares from open market. One97 Communications Limited, which owns Paytm announced the buyback size of up to Rs 850 crores, in line with Securities and Exchange Board of India (Sebi) regulations. 

The company further said in the BSE filing that the maximum buyback price would be Rs 810 per share (50 per cent premium to the closing price as on board meeting date). 

The filing said that all directors present voted unanimously in favour of the proposal, including all independent directors. Company’s directors and key management personnel will not sell any shares during the buyback period.

In case of a full buyback of Rs 850 crores, and applicable buyback taxes, the total outlay will be in excess of Rs 1,048 crore. 

Vijay Shekhar Sharma, Founder & CEO, Paytm said, “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.”