Shares of One97 Communications Ltd., the parent of payments platform Paytm, gained the most in a week after the company said its board will consider a share buyback proposal.
"The management believes that given the company's prevailing liquidity/ financial position, a buyback may be beneficial for our shareholders," it said in an exchange filing. The board is set to meet on Dec. 13 to approve or reject the plan.
The buyback plan comes after the company's stock lost 76% of its value from its IPO price of Rs 2,150, amid concerns over its path to profitability.
The company's plan to reward shareholders is in line with other new-age companies such as Nykaa, which also announced a stock split and bonus issue.
Shares of the company gained as much as 7.83% to Rs 548 apiece. It ended 7.16% higher on Friday. On Nov. 23, the stock hit an all-time low of Rs 438.35 per share.
Of the 12 analysts tracking the company, eight maintain 'buy', three suggest 'hold' and one recommends 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 64.5%.
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