Paytm Share Buyback: The board of Paytm’s parent company One97 Communications has approved the buyback of its shares. The board has approved about Rs 850 crore for this. Along with this, the board has decided that the price per share in this buyback will be Rs 810. It is worth noting that on December 13, 2022, the shares of Paytm had closed at Rs.539.50. While giving information to the Market Regulatory on this matter in Paytm, it has been told that it will complete the process of buyback of its shares within 6 months. Along with this, the company has informed that the directors of the company have voted unanimously to buy back the shares of the company.
The company fixed the price of the shares
A board meeting was called to buy back Paytm’s shares in Paytm’s parent company One97 Communications. In this meeting, all the members of the board have decided to buy back the shares with their consent. Along with this, the price of shares has also been fixed in this meeting at which the shares will be bought. This price has been fixed at Rs 810 per share. The company has allocated Rs 850 for buyback of shares. The company will buy 10,493,827 shares of the company for Rs 850 crore, which is about 1.62 per cent of the total equity capital of Paytm. If the company buys these Rs 850 crore shares, then including taxes and other transaction charges, the company will have to spend Rs 1,048 crore.
Paytm will definitely use at least 50 percent of the amount
Along with this, Paytm has further informed that it will definitely use at least 50 percent of the allotted amount to buy shares of Paytm. In such a situation, Paytm will definitely buy back shares worth at least Rs 425 crore. The company has decided that while buying back these shares, a buyback committee will be formed which will oversee the work of this buyback. Let us tell you that the board members of Paytm believe that investors can get relief by buying back the shares of the company.
Paytm shares caused huge loss to investors
Let us tell you that Paytm Shares has caused huge losses to its investors. Yesterday, Paytm shares closed at Rs 538.40 on the NSE with a gain of 1.83 per cent. Paytm’s share is included in the biggest loss shares of the year. Talking about the last one month, a big drop of 15.68 percent has been recorded in its price. At the same time, since the beginning of the year 2022, the shares of Paytm have sunk more than 60 percent of the investors’ money.
What is buyback?
Let us tell you that share buyback is a process through which shares are bought again. When the company buys back its shares from the investors, it is called Shares Buyback Process. In this, most of the company buys shares at more than the current price. Through share buyback, the company buys its shares and returns the money of its investors again. Taxes and other charges are less in this process. In this case, it can prove to be less expensive.