Paytm can’t use IPO proceeds for buyback; company’s strong liquidity to be used

NEW DELHI: One 97 Communications Ltd, the operator of India’s largest digital payments provider Paytm, cannot use proceeds of its mega initial public offering (IPO) for the proposed repurchase of its own shares, as rules prohibit such a move, sources said, adding the firm will use its strong liquidity for the purpose.

Paytm has a liquidity of Rs 9,182 crore, as per its last earnings report.

The company’s board is scheduled to meet on December 13 to consider a share buyback proposal. “The management believes that given the company’s prevailing liquidity/ financial position, a buyback may be beneficial for our shareholders,” it had stated in an exchange filing on Thursday.