Business

Fall Of A sudden : Paytm Down Even After 850 Cr Worth Share Buyback Announcement

Paytm Down: The business market does not favor the digital transaction Giant PayTm falls despite its announcement of Rs 850-crore share buyback plan.

Paytm Down: PayTm says that it is about to buy back up to 10.5 million shares of the company with a price of up to Rupees 810 per share

Paytm Down: It was today on 14th of December when Paytm, quickly gave up their opening gains and traded lower inspite of the company’s approval of a Rs 850 crore share buyback plan yesterday on 13th of December 2022.

The company says that it is going to buy back up to 10.5 million shares of PayTm at a price of up to Rs 810 per share. This was much higher than the Rs 650 per share as was expected by the market.

Nevertheless, market participants looked upset expressing disappointment over the route via which PayTm will buyback shares. Paytm says that it will buy back its shares via the open market method, not through the much preferred tender route.

In accordance with the open market method, a company buys back shares via the market, reslutantly shares can be purchased at any price up to the cap as are provided by the company. Being different from the tender route, shareholders can availe their shares for buyback at the fixed price as set by the company.

Also Read: India To Buy More Russian Crude

As per the tender route fifteen percent of the buyback of shares is reserved only for retail investors, on the other hand no such exemption is applied via the open market route. Several market participants scolded  the open market method which is chosen by PayTm thus making the share buyback plan a “non-event”.

With the equal-weight rating on the counter, Morgan Stanley, says that at the current price strata, potentially PayTm could purchaeback up to sixteen million shares.

 

Parijat Tripathi

Recent Posts

‘In Kabul, A Cat Has More Freedom Than A Woman’: Revisiting Women’s Struggles Under The Taliban

The Taliban’s regime has since imposed over 100 laws restricting women's rights, stripping them of…

2 hours ago

PM Modi’s Gifts: A Glimpse Of India’s Cultural Heritage In Global Diplomacy

These gifts to world leaders reflect the diverse traditions, arts, and crafts of India, emphasizing…

5 hours ago

Dr Rajeshwar Singh Calls For Bold Goals To Make India A Global Power By 2047

Dr Singh stressed the importance of reaching a GDP of $15 trillion by 2047 to…

6 hours ago

Gautam Adani Faces Indictment In US: Legal Expert Vijay Aggarwal Dismisses Immediate Repercussions

Criminal lawyer Vijay Aggarwal weighed in on the charges against Adani. He believes the indictment…

6 hours ago

Adani Group Stocks Recover As Sensex nd Nifty Post Gains

After a major sell-off earlier in the week, Adani Group stocks, led by Ambuja Cements…

7 hours ago

Sensex Soars 1,961 Points, Nifty Gains 557 In Broad-Based Market Rally

A sharp rally in financial stocks and encouraging US labor market data fueled the uptrend.…

7 hours ago