Paytm To Consider Share Buyback Proposal On Dec 13

Paytm's parent One97 Communications Ltd. will consider a share buyback proposal to reward shareholders after an agonising first year of going public.

The board of the company is scheduled to meet on Dec. 13 to consider the repurchase plan, according to an exchange filing. "Given the company’s prevailing liquidity/financial position, a buyback may be beneficial" for the shareholders, it said.

Shares of Paytm have tumbled more than 76% below the initial public offering price, as investors remain concerned about profitability and a global slowdown.

The shares fell to the lowest since listing on Nov. 23, closing at Rs 438.35 compared to its IPO price of Rs 2,150.

The digital payments provider narrowed its net loss to Rs 571.5 crore for the quarter ended September from Rs 645.4 crore in the preceding quarter. Revenue rose 14% sequentially to Rs 1,914 crore.

Its monthly transactions rose to 7.97 crore from July to September, compared to 7.48 crore in the preceding quarter.