(Bloomberg) -- Shares of One 97 Communications Ltd. surged in Mumbai, with the operator of India’s largest digital payments provider set to explore a buyback.
The company, which operates Paytm, on Thursday said its board is scheduled to meet on Dec. 13 to consider the proposal to repurchase fully paid-up equity shares. The stock climbed as much as 7%, the most in a week.
“The management believes that given the Company’s prevailing liquidity/ financial position, a buyback may be beneficial for our shareholders,” it wrote in an exchange filing.
After a much-watched listing late last year, the stock is down 60% in 2022 as questions swirl around profitability, competition and costs related to marketing and employee stock options. The weak performance, worsened by a global tech selloff, is stark compared with the benchmark S&P BSE Sensex Index’s recent rise to a fresh record high.
There are eight buy recommendations on the stock, three holds and one sell rating, according to data compiled by Bloomberg.
(Updates with share-price move.)
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