Paytm Share Buyback Questions are being raised on the decision

Paytm Share Price: Paytm is in a lot of headlines these days. Now Paytm can also buy back its shares. A decision on this can be taken soon. However, such information is coming out that Paytm cannot use the amount received from IPO for Share Buyback. Sources say that One 97 Communications Limited, the operator of Paytm, India's largest digital payment services provider, will not be able to use the amount received from the IPO for share buyback under the rules. For this the company will have to use cash.

share buy back

According to the information, if the latest financial results of Paytm are seen, then the company has cash available of Rs 9,182 crore. At the same time, the meeting of the board of directors of the company is going to be held on December 13 regarding the share buyback. Recently, Paytm had sent information to the stock market that the management believes that considering the current liquidity / financial condition of the company, share buyback will be of great benefit to the shareholders.

Income from IPO

Please tell that at the end of the year 2021, the shares of the company were listed in the stock market. However, in the year 2022, there has been a significant decline in the company's stock. Paytm's shares have broken more than half after questions were raised on the sale and the company's profits. Although sources say that if the rules are considered, then no company can use the income earned from IPO for share buyback.

raised so much money

The company raised Rs 18,300 crore through Paytm's IPO launched last year. At the same time last month, it was said by the company that in the coming 12-18 months the free cash flow will become positive. Sources also indicated that the company is close to generating cash flow and will use it for business expansion.

there is monitoring

Sources say that the amount of IPO can be used for the purpose for which the IPO was brought. There it is also monitored. In such a situation, if the company uses the amount of IPO for share buyback, then the company will not be able to do so.