Paytm to buy back ₹850 cr in shares at 59% premium after post-IPO plunge: Report

Paytm will buy back as much as 8.5 billion rupees ($103 million) of its own shares, following a roughly 75% plunge in the Indian fintech company’s stock price since going public in 2021.

The board at Paytm, whose official name is One 97 Communications Ltd., on Tuesday approved a plan to repurchase as many as 10.5 million shares at 810 rupees apiece on the open market, the company said in a statement Tuesday. That is a 59% premium to Thursday’s closing price, before the company said it was considering a buyback.

“Paytm board believes that this buyback is a sign of confidence that the company is on a clear path to deliver cash flow profitability, and this buyback will not have any impact on its growth plans in the near future or on its profitability plans,” Paytm, once India’s most valuable startup, said in a filing.