The board of One97 Communications, which owns the Paytm brand, will meet on December 13 to consider a share buyback proposal, the company told exchanges on Thursday.
“The management believes that given the company’s prevailing liquidity/ financial position, a buyback may be beneficial for shareholders. The outcome of the board meeting will be disseminated to the stock exchanges on December 13, 2022, in accordance with the applicable provisions of the SEBI Listing Regulations,” the filing with the exchanges said.
This will be the first time that Paytm will consider a buyback, after its shares were listed in the stock exchange in November 2021.
In a recent analyst meeting, the company outlined key growth drivers and said it expects to become cashflow positive in the next 12-18 months. This is aligned with the company’s earlier guidance of turning EBITDA breakeven before ESOPs by September 2023 quarter.