Paytm Board approves Rs 850 crore share buyback at up to Rs 810 per share
Paytm Board on Tuesday unanimously approved the buyback of its equity shares from the open market. One 97 Communications Limited, which owns Paytm announced a 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 percent premium to the closing price as on the board meeting date).
The filing said that all directors present voted unanimously in favor of the proposal, including all independent directors. The 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.
For long-term value creation for our shareholders, in line with SEBI regulation, our Board has unanimously approved a share buyback plan for ₹850 crore at maximum share price of ₹810/- (a 50% premium to last closing price).
Read more about it here: https://t.co/7CviydxG4V— Paytm (@Paytm) December 13, 2022
Vijay Shekhar Sharma, Founder & CEO of paytm said, “Over the last year, there is clear business momentum, and we are ahead of our plans. Looking at the monetization 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.”
In October and November 2022, Paytm’s operating performance “has shown strong growth in its lending business” with the annualized run rate for the loan distribution business is now Rs 39,000 crores ($4.8 billion).
The company said it continued to maintain its leadership in offline payments with merchants paying subscriptions for payment devices exceeding 5.5 million.
The company is ahead of its previously-stated plans to achieve EBITDA before ESOP costs profitability by the quarter ending September 2023, the press release said.
