Digital financial services company Paytm said on Thursday that its board would meet on December 13 to consider a proposed share buyback keeping in mind the company’s liquidity position which could benefit its shareholders. .
Paytm has a liquidity of Rs 9,182 crore, according to its latest earnings report.
A company’s liquidity is measured by its ability to convert assets into cash.
“The company’s board meeting is scheduled to be held on Tuesday, December 13, 2022 to consider a proposal to repurchase the company’s fully paid shares,” Paytm said in a BSE filing.
The company’s revenue in the last quarter was Rs 1,914 crore.
“Management believes that given the Company’s current liquidity/financial position, a buyout may be beneficial to our shareholders,” the filing said.
At its recent analyst meeting, the company said it expects to be cash flow positive over the next 12 to 18 months.
Paytm was listed on the stock exchange in November 2021. Paytm listed 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 hit a historic low of Rs 441 last month. On Thursday, it closed at 508.4 each, down 0.28% from the previous close, on BSE.
Paytm shares are currently trading up 5% at Rs 538.45 on NSE.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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