Paytm Buyback: Paytm share buyback offer is not impressive and investors are advised to be cautious before buying, said Zee Business Managing Editor Anil Singhvi on Wednesday, December 14.

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He said that digital financial services firm One97 Communications, which operates under the Paytm brand, has a market cap of Rs 35,068 crore and a buyback offer of Rs 850 crore is not impressive.

Also, it is an open market buyback wherein a company buys back its own shares from the open market, either through the Stock exchange or the book-building process. It should have been a tender offer buyback, he said.

Paytm shares decline 3% as buyback announcement fails to impress 

Singhvi said that Paytm has said that its director and key management personnel won’t sell shares but the important thing to note is that the top management has only Vijay Shekhar Sharma (CEO) who holds 9 per cent stake, the institution holds 78.6 per cent in 91 per cent shareholding which is still available for selling.

Meanwhile, brokerages have revised the target on Paytm post announcement of the buyback.

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