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Paytm spikes 5% as traders lap up shares on buyback announcement

The company is yet to decide the price and size of the cashback. Buyback price is usually at a premium to prevailing prices, giving a lucrative exit route to exiting shareholders.

December 09, 2022 / 10:20 AM IST
 
 
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Shares of One 97 Communications, the parent company of Paytm, surged over 5 percent in the morning trade on December 9 after the company said its board will consider a share buyback on December 13.

“We wish to inform you that a meeting of the Board of Directors of the company is scheduled to be held on Tuesday to consider a proposal for buyback of the fully paid-up equity shares of the company,” it said in an exchange filing.

“The management believes that given the company’s prevailing liquidity and financial position, a buyback may be beneficial for our shareholders,” Paytm added.

As of 9.30 am, the stock zoomed 5 percent to Rs 532.80. The company has brought its first buyback barely after a year of listing. It has failed to report a profit until now.