Paytm has announced a buyback scheme worth Rs 850 crore at a maximum price of Rs 810 per share
Paytm share buyback scheme
Paytm has opted for the open market route through the stock exchanges method, which is to be completed within a maximum period of 6 months
Open market route
At the maximum buyback price and the maximum buyback size, the indicative maximum number of equity shares bought back would be 10,493,827 equity shares
Paytm buyback plan
Paytm reiterates that proceeds from the IPO are not being directed towards the share repurchase plan
Paytm on Buyback plan
Assuming a full buyback of Rs 850 crores, and applicable buyback taxes, the total outlaywill be in excess of approx Rs 1,048 crores
Total outlay
Paytm board believes that this buyback is a sign of confidence that the company is on a clear path to deliver cash flow profitability
Path to profitability
The scrip got listed at a discount of 9 per cent at Rs 1,950 on the NSE against the issue price of Rs 2,150 per share
Paytm's debut on D-street
So if you compare it with the current market price, the stock is down over 75% from its issue price and 72% from its listing price
Paytm's performance on D-Street
JPMorgan said this Rs 850 crore share at a 50% premium will provide support to the stock price in the near term