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regular-article-logo Thursday, 13 June 2024

Paytm board to consider proposal for share buyback

Company in its recent analyst meeting says it expects to become cash flow positive in thenext 12-18 months

Our Bureau Mumbai Published 09.12.22, 02:15 AM
Representational image.

Representational image. File picture

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. Liquidity of a company is measured by its ability to covert assets into cash.

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“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.

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 Rs1,950 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.

Paytm expects its blended net payment margin to stabilise at 5 to 7 basis points because of the increase in the share of UPI in the payment business, according to company’s founder and CEO Vijay Shekhar Sharma.

Net payment margin or net contribution profit is defined as payment revenues less payment processing charges.

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