Paytm to buyback it’s shares, investors concerned

Paytm’s move to buy back shares has concerned investors about the Indian fintech firm’s development prospects as it utilises capital to prop up its damaged stock.

Paytm shares, India’s largest-ever IPO, have lost 75% of their value since going public in 2014. According to analysts, the corporation may need to pay a 30%-40% premium over the current price for the repurchase to succeed.

Other Indian IT businesses’ shares have also fallen as early investors exited or reduced their stakes.

On Tuesday, the board of One 97 Communications Ltd., the publicly traded company that operates Paytm, will make a decision on the buyback.