Paytm unveils buyback plan, says it has Rs 9,182 crore cash in hand

MUMBAI: One97 Communications, which operates under the Paytm brand, has said that the company’s board will meet on December 13 to decide on a share buyback programme. Paytm has Rs 9,182 crore of cash in hand and a large chunk of this predates its initial public offering (IPO).

“The management believes that given the company’s prevailing liquidity/financial position, a buyback may be beneficial for our shareholders,” Paytm said in an exchange filing. According to sources, the company is looking at ways to restrict the buyback to retail investors. The announcement comes when the company’s shares were down over 75% from the IPO a year ago. Paytm’s Rs 18,600-crore IPO was the second-largest in the country after LIC and it valued the company at Rs 1. 4 lakh crore. Paytm has a current market cap of Rs 33,003 crore.

The company has not disclosed any target range for the buyback. Share buybacks are typically announced at a price above the market price and, usually, the market price moves to the buyback price level.