The shares will be bought back at a maximum price of Rs 810 apiece, it said in a release. The indicative maximum number of shares that will be bought back is 1,04,93,827 shares, representing about 1.62% of the paid-up share capital of the company.
The company will utilise at least 50% of the amount set aside for the buyback of shares. On December 9, the company had announced that the board will consider a share buyback.
In the run-up to the meeting, shares of the payment gateway services provider had risen in trade. The stock ended 2% higher at Rs 539.40. The announcement is unlikely to drive the stock significantly on Wednesday, as the buyback is not being undertaken through the tender offer route, which gives an opportunity to shareholders to tender shares at a premium.
Companies in order to reward stakeholders give back part of the profits either through a dividend or a share buyback. A share buyback is also done to instill confidence among shareholders if the company believes that the stock is undervalued.
Year-to-date, the stock has fallen by more than 67% due to the sell-off in new-age technology companies globally.
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