Paytm board to weigh buyback tomorrow after historic slump

The board of One 97 Communications Ltd, the operator of the country's largest digital payments provider Paytm, will meet tomorrow to consider a share buyback proposal after the fintech firm's stock lost three-quarters of its value since its initial public offering last year.

Paytm directors are expected to take a call on the number of shares the fintech company will potentially repurchase and at what price.

Jain estimated the appropriate size of a buyback at about ₹800 crore to ₹1,000 crore and said Paytm is set to buy the shares on the open market.

Jain is among other analysts who recommend buying the Paytm stock. However, few analysts have warned that the share buyback would not bring long-term relief to investors as concerns around the company's slow path to profitability remained.