Few days back Paytm announced buy back of it’s shares for around 810 rupees per share. Is there any announcement on which date is is going to happen ?
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OPEN MARKET buyback already started from 21.12.2022 and max it can be till 19.06.2023. it is not from shareholders directly at a fixed price . co will buy shares from nse/bse through a broker like you and me buy.during this 6 months .
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May I know how to sell shares of paytm in buy back ?
It is an open-market buyback offer. In an open market buy back offer the company opts to buy back its shares by actively buying from sellers (like you) on the exchange platform*
For instance - You have sold 100 shares of a company from your holdings on Kite during the ongoing open market buyback. It is possible that the company buys back only 30 shares and the remaining 70 shares might have been sold to another regular buyer. You will receive an email from the exchange confirming the transaction of the 30 shares that were bought back by the company.
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Hi Deeps ! So, in this buy back offer we can’t sell all shares to the company as we do for other stocks like Infy.
For eg., If Infy or TCS shares announce buyback we can sell all stocks to the company in the price band as fixed by company. But in case of Paytm it is different and even if I sell, only a small quantity will be bought by company at priceband of 810 rs and remaining shares will be sold in CMP of 480 rs (As of today 23-Dec-2023).
Am I right ?
no guarantee you will be selling to the company, may or may not, it company did buy it from you then you will receive the email that the company has bought back.
In open market buyback, the company buys back the shares at prevailing market price. However, the company can only buy back shares at the maximum price it has set. In case of PAYTM, the company can buy back the shares at only Rs. 810 or lower, above that, the company cannot buy the shares.
This is an open market buyback and it started on December 21, 2022.
Open market buybacks work differently compared to tender buybacks. Please check this post for detailed information: