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Paytm board to consider share buyback proposal on December 13

Dec 9, 2022, 10:18 IST
PTI
Representative imageBCCL
Digital financial services firm Paytm on Thursday said its board will meet on December 13 to consider a proposal for share buyback keeping in mind the company's liquidity position which may be beneficial for its shareholders. Paytm has a liquidity of Rs 9,182 crore, as per its last earnings report.
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Liquidity of a company is measured by its ability to covert assets into cash.

"The meeting of board of directors of the company is scheduled to be held on Tuesday, December 13, 2022 to consider a proposal for buyback of the fully paid-up equity shares of the company," Paytm said in a BSE filing.

The company's revenue in the last quarter was Rs 1,914 crore.

"The management believes that given the company's prevailing liquidity/financial position, a buyback may be beneficial for our shareholders," the filing said.

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The company in its recent analyst meeting, where it had outlined key growth drivers, had said that it expects to become cash flow positive in the next 12-18 months.

Paytm got listed in the stock exchange in November 2021. Paytm allotted its shares at Rs 2,150 apiece, valuing the company at Rs 1.39 lakh crore, but it started trading at Rs 1,950 apiece.

The stock touched an all-time low of Rs 441 last month. On Thursday, it closed at 508.4 apiece, down 0.28 per cent from the previous close, on the BSE.

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