Paytm parent One97 Communications on Thursday said its board will meet on December 13 to consider buyback of shares.
“The management believes that given the company’s prevailing liquidity/financial position, a buyback may be beneficial for our shareholders,” the company said in a release.
The stock ended 0.3% down at Rs 508.40 on the BSE. Year-to-date, the stock has fallen by more than 67%.
Companies in order to reward stakeholders give back part of the profits either through a dividend or a share buyback. A share buyback is also done to instill confidence among shareholders if the company believes that the stock is undervalued.
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