Cloud over Paytm corpus

Amid questions over whether it has the cash for the proposed buyback and if it is returning equity capital to shareholders, One97 Communications, the Paytm parent, on Monday shared a two-month operating performance update where it said there has been a sustained growth in its payments and loan distribution business.

The strong numbers disclosed by Paytm for October and November 2022 are seen as an attempt to counter the view that it does not have the cash flow for the share repurchase. Last week, Paytm said its board will meet on Tuesday to consider a share buyback.

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