Shares of One 97 Communications Ltd, Paytm’s parent, returned to positive territory in Friday’s trade, snapping their four-day losing run. The stock climbed as much as 6.79 per cent to hit a day high of Rs 542.90 against its previous close of Rs 508.40. A total of 5.99 lakh shares changed hands today on BSE, amounting to a turnover of Rs 31.88 crore. The company’s market capitalisation or m-cap stood at Rs 34,333.84 crore, down more than Rs 85,000 crore from its peak value of around Rs 1.2 lakh crore.
The stock has declined 2.57 per cent in the last five sessions. On a year-to-date (YTD) basis, it has plunged 60.49 per cent.
AK Prabhakar, Head of Capital, IDBI Capital, said, “Paytm shares moved higher due to the announcement of share buyback proposal next week.”
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The digital payments firm said it would hold a board meeting on December 13 to consider a proposal for the buyback of equity shares.
Under a share buyback process, a company buys back its shares from investors or shareholders, usually at a price higher than the market price.
Pavitraa Shetty from Tips2trades, said, “After a decent recovery from its 52-week lows, Paytm stock price again finds itself at a strong resistance zone of Rs 548-565. Investors who had bought near lows should book profits at current levels. Buy can be initiated only if daily close above Rs 565 or wait for a dip near 490.”
Anand James, Chief Market Strategist at Geojit Financial Services, said, “Paytm’s recent recovery rallies are looking to shape up a proper reversal pattern encouraging us to scout for Rs 575 to Rs 626 within a 1 to 2-month time frame.”
Paytm made a tepid debut at the exchanges in November last year. Since then, the shares have mostly recorded losses.
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Meanwhile, Indian equity benchmarks swung into the red amid a volatile session today, dragged by technology stocks.