The buyback of shares has been authorized by One97 Communications, the parent company of Paytm. For this, the board has approved roughly Rs 850 crore. Additionally, the board has determined that the buyback price per share will be Rs 810.
It’s important to note that on December 13, 2022, Paytm’s shares ended at Rs. 539.50. Paytm has been informed that the process of buying back its shares will be completed in less than six months while providing information to the Market Regulatory on this subject.
Additionally, the firm has disclosed that all of the directors have unanimously decided to repurchase the company’s shares.
The company set the share price.
To repurchase Paytm’s shares in Paytm’s parent company One97 Communications, the board of directors scheduled a meeting.
All of the board members present at this meeting have agreed to the buyback of the shares. At the same meeting where the shares would be purchased, the price of shares was also set. The share price has been set at Rs. 810.
The business has set aside Rs 850 for the share buyback. For Rs 850 crore or roughly 1.62 percent of Paytm’s total equity capital, the company will purchase 10,493,827 shares of the company.
Paytm will undoubtedly use at least 50% of the funds.
Paytm has also stated that it will surely use at least half of the allocated funds to purchase Paytm stock. Paytm will unquestionably buy back shares in this scenario that are at least worth Rs 425 crore.
The corporation has made the decision to organize a buyback committee to oversee the process of repurchasing these shares. Let us inform you that the Paytm board members think that investors can find relief by buying back the company’s shares.
Paytm shares cost investors a hefty loss.
Let us inform you that Paytm Shares caused its investors to suffer significant losses. Yesterday, Paytm shares gained 1.83 percent to settle at Rs 538.40 on the NSE.
The largest losing shares of the year include Paytm’s share. Regarding the past month, a significant decrease of 15.68 percent in price has been seen. The shares of Paytm have also lost more than 60% of the money invested in them since the year 2022 began.
Describe buyback.
Let us explain the share buyback procedure, in which shares are repurchased. The shares Buyback Process refers to the process through which a firm buys back its shareholders’ shares.
In this, the majority of the business purchases shares at a premium to the going rate. The business repurchases its shares in order to give its investors their money back. This method results in lower taxes and other fees.
It may turn out to be less expensive in this instance.
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