Shares of One 97 Communications Ltd surged in Mumbai, with the operator of India’s largest digital payments provider set to explore a buyback.
The company, which operates Paytm, on Thursday said its board is scheduled to meet on December 13 to consider the proposal to repurchase fully paid-up equity shares. The stock climbed as much as 7 per cent, the most in a week.
“The management believes that given the Company’s prevailing liquidity/financial position, a buyback may be beneficial for our shareholders,” it wrote in an exchange filing.
After a much-watched listing late last year, the stock is down 60 per cent in 2022 as questions swirl around profitability, competition and costs related to marketing and employee stock options. The weak performance, worsened by a global tech selloff, is stark compared with the benchmark S&P BSE Sensex Index’s recent rise to a fresh record high.
There are eight buy recommendations on the stock, three holds and one sell rating, according to data compiled by Bloomberg.