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Share buyback on agenda for Paytm’s parent firm One 97 Communications on 13 December board meet

One 97 Communications Limited, the parent firm of Paytm, will consider a share buyback during its upcoming board meeting. In a regulatory filing on 8 December, One 97 stated that the company’s board of directors will meet on 13 December for considering a proposal to buy back the fully paid-up equity shares of the firm. As per the fintech company, it is believed by the management that a buyback may benefit the company’s shareholders given its prevailing liquidity/financial position. The meeting’s outcome will be disseminated to the stock exchanges after its conclusion on 13 December in line with the provisions of Securities and Exchange Board of India (SEBI) Listing Regulations.In the process of a share buyback, a company purchases its share back from the investors or shareholders usually at a price higher than the market price. A few weeks ago, One 97 Communications came under pressure after its investor Softbank rolled out a block deal to sell shares amounting to nearly $200 million post end of lock-in period for pre-IPO investors. SoftBank had stated that it was planning to offload 29 million shares or 4.5 percent of the fintech firm.The fintech player will be one of the first new age firms in the stock market to announce a buyback, if approved by the board. It had been recently upgraded by CLSA, a financial research company. The rating of One 97 Communications has been upgraded to a “Buy” recommendation from “Sell”.While declaring its results for July-September, One 97 stated that its revenue has increased to Rs 1,914 crore against Rs 1,086 crore a year before. The firm saw a consolidated net loss of Rs 571 crore against a loss of Rs 473 crore for the same period last year as the expenses related to employee benefits and payment processing charges rose.The shares of Paytm have gone down by over 75 percent since its listing on the exchanges last year. The share price of One 97 Communications rose 4.14 percent to stand at Rs 529.25 on the NSE at 11:02 am on Thursday, 9 December.Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.

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Published on : 2022-12-09 07:04:02

Source :firstpost

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