Rs 850-crore buyback at premium to support Paytm stk in near-term: JPMorgan

The number of shares bought back will be 10.5 million at the maximum buyback price of Rs 810, representing 1.6 per cent of the paid-up share capital

Paytm shares fell 2 per cent on the BSE on Wednesday even as global brokerage JPMorgan said the Rs 850-crore share buyback could support the stock's price in the near-term. In comparison, the benchmark S&P BSE Sensex edged 0.23 per cent higher. 

"We expect the buyback announcement at a 50 per cent premium to provide support to the stock price in the near term. We reiterate 'over-weight' rating on the stock and an unchanged target price of Rs 1,100 as the reduction in cash because of buyback offsets the reduction in share count," the brokerage said in a note on