The shares will be bought back at a maximum price of Rs 810 each, it said in a release. The indicative maximum number of shares that will be redeemed is 1,04,93,827 shares, representing approximately 1.62% of the company’s paid-up share capital.
The company will use at least 50% of the reserved amount for share repurchases. On December 9, the company had announced that its board would consider a share buyback.
In the run-up to the meeting, shares of the payment gateway services provider had risen in trading. The stock finished 2% higher at Rs 539.40. The announcement is unlikely to boost the stock significantly on Wednesday, as the buyback is not going through the tender route, which allows shareholders to offer shares at a premium.
To reward stakeholders, companies return a portion of profits, either through dividends or share buybacks. A share buyback is also done to instill confidence in shareholders if the company believes that the shares are undervalued.
Year-to-date, the stock is down more than 67% as a result of sell-offs in new-age technology companies worldwide.