{"id":3645,"date":"2022-09-26T12:45:17","date_gmt":"2022-09-26T12:45:17","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=3645"},"modified":"2022-09-26T12:49:23","modified_gmt":"2022-09-26T12:49:23","slug":"stock-buyback-on-paytm-money","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/stock-buyback-on-paytm-money\/","title":{"rendered":"Stock Buyback on Paytm Money"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">What is a stock buyback?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A stock buyback is when a listed company buys its own shares back in the open market.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why does a company announce buybacks?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A company can announce buybacks for a variety of reasons. As an investor, we should understand the underlying reasons for buybacks and accordingly take a call on participation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some of the potential reasons for announcing buybacks:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company has excess cash but limited growth opportunities to invest in<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company feels the stock is undervalued and through buyback aimes in increasing value of available shares<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company may want to increase proportion of shares owned as it is bullish on current operations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company may want to decrease potential of external controlling stake<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">What\u2019s in it for you, an existing shareholder?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In a buyback, the company usually offers to buy back the stocks at a price above the current market price.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So you, the investor gets a premium over the stock\u2019s current market price.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How do you know if you are eligible for Buyback?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For being eligible to participate in Share Buybacks, the investor needs to fulfill following conditions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Have shares in the portfolio by record date<\/b><span style=\"font-weight: 400;\">: Investors need to have the company shares in the portfolio on\/before the record date announced by the company. Therefore, assuming the company has a T+2 settlement, the shares of the company should be purchased at least 2 trading dates before the record date.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Have free holdings during order placement<\/b><span style=\"font-weight: 400;\">: Investors need to hold these shares and then apply them during the offer period, so that they are available for tendering during the offer period. If any shares are pledged, they\u2019ll need to be unpledged before applying for buyback.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You can check your eligible quantity for a share buyback during the offer window on the Paytm Money app itself by entering the Buyback screen.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How do you find out upcoming Buybacks on Paytm Money?\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">You can track the share Buybacks which are open or upcoming on Paytm Money app in this manner<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Step 1: Go to the accounts section, and select corporate actions \u201cBuybacks, Delisting, OFS etc\u201d<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-3646\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2022\/09\/1-entry-point-of-Buyback.png\" alt=\"1-entry point of Buyback\" width=\"550\" height=\"1454\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/1-entry-point-of-Buyback.png 550w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/1-entry-point-of-Buyback-113x300.png 113w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/1-entry-point-of-Buyback-387x1024.png 387w\" sizes=\"(max-width: 550px) 100vw, 550px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Step 2: From the list of corporate actions, select \u201cBuyback\u201d:<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-3647\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2022\/09\/2-Select-buyback.png\" alt=\"2-Select buyback\" width=\"554\" height=\"1154\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/2-Select-buyback.png 554w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/2-Select-buyback-144x300.png 144w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/2-Select-buyback-492x1024.png 492w\" sizes=\"(max-width: 554px) 100vw, 554px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Step 3: You can see a list of Open, Upcoming as well as Closed buybacks here<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-3648\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2022\/09\/3-List-of-Buybacks.png\" alt=\"3-List of Buybacks\" width=\"554\" height=\"1216\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/3-List-of-Buybacks.png 554w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/3-List-of-Buybacks-137x300.png 137w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/3-List-of-Buybacks-467x1024.png 467w\" sizes=\"(max-width: 554px) 100vw, 554px\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">How do you participate in Stock Buybacks?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Once you have checked your eligibility for any buyback and done your research and decided to apply for the same, you need to follow the steps as below:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For applying to any Open Buyback, you can proceed to check additional information on the buyback, quantity you\u2019re eligible to apply, etc as below:<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-3649\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2022\/09\/44.png\" alt=\"Paytm Money\" width=\"202\" height=\"332\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/44.png 202w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/44-183x300.png 183w\" sizes=\"(max-width: 202px) 100vw, 202px\" \/><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">In the Apply screen, enter the quantity you want to apply up to the eligible quantity:<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-3650\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2022\/09\/6-Order-placement-screen.png\" alt=\"6-Order placement screen\" width=\"374\" height=\"816\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/6-Order-placement-screen.png 374w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/6-Order-placement-screen-138x300.png 138w\" sizes=\"(max-width: 374px) 100vw, 374px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Complete the eDIS TPIN + OTP process :<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-3651\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2022\/09\/7-eDIS-authorisation-TPINOTP.png\" alt=\"7-eDIS authorisation TPIN+OTP\" width=\"372\" height=\"774\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/7-eDIS-authorisation-TPINOTP.png 372w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/7-eDIS-authorisation-TPINOTP-144x300.png 144w\" sizes=\"(max-width: 372px) 100vw, 372px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Post successful TPIN + OTP authentication, confirm your order:<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-3652\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2022\/09\/8-Post-eDIS-confirmation-screen.png\" alt=\"8-Post eDIS confirmation screen\" width=\"372\" height=\"776\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/8-Post-eDIS-confirmation-screen.png 372w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/8-Post-eDIS-confirmation-screen-144x300.png 144w\" sizes=\"(max-width: 372px) 100vw, 372px\" \/><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Follow the status progress updates for your order as below:<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-3653\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2022\/09\/9-Order-status-screen.png\" alt=\"9-Order status screen\" width=\"370\" height=\"964\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/9-Order-status-screen.png 370w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/9-Order-status-screen-115x300.png 115w\" sizes=\"(max-width: 370px) 100vw, 370px\" \/><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Additionally you will also be notified via mail regarding important updates for your buybacks.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">How much quantity can you apply for in a Buyback?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Assuming you have holdings of the Buyback stock prior to the record date in your portfolio, here is a breakdown of the amount you are eligible to apply for:<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-3654\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2022\/09\/55.png\" alt=\"Paytm Money\" width=\"285\" height=\"343\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/55.png 285w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2022\/09\/55-249x300.png 249w\" sizes=\"(max-width: 285px) 100vw, 285px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As can be seen in the above example screenshot, the user had 100 holdings in the portfolio (post settlement) of the stock as on the record date. Therefore the max cap the user can apply is upto 100 units.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Now, as on the date of Buyback order, the user has, let&#8217;s say, 60 current holdings assuming the user has sold 40 units out of the 100 holdings held on the record date: 100 record holdings &#8211; 40 sold = 60 current holdings.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">And of these 60 holdings, let\u2019s assume the user has pledged 20 holdings. Then the user can apply buyback for net available free holdings: 60 current holdings &#8211; 20 pledged = 40 available free holdings.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Now, assuming the user has already applied for 10 units in this buyback, then the user can apply for the net 40 available free holdings &#8211; 10 already applied = 30 units eligible.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Please note, the user could additionally buy the 40 units initially sold, get them in the portfolio post settlement before the Buyback offer period ends and apply for that quantity as well. Additionally, users can unpledge these 20 units before the Buyback offer period ends and apply for that as well.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Our product, Tech, Risk and Ops teams have worked day in and day out to help you with a seamless journey on Paytm Money. With the Buyback launch, you can easily track upcoming buybacks, apply for the same and track your Buyback orders.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Disclaimer \u2013 Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Paytm Money Ltd SEBI Reg No. Broking \u2013 INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019. For complete Terms &amp; Conditions and Disclaimers visit www.paytmmoney.com.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a stock buyback? A stock buyback is when a listed company buys its own shares back in the open market. Why does a company announce buybacks? A company can announce buybacks for a variety of reasons. As an investor, we should understand the underlying reasons for buybacks and accordingly take a call on<a href=\"https:\/\/www.paytmmoney.com\/blog\/stock-buyback-on-paytm-money\/\">Continue reading <span class=\"sr-only\">&#8220;Stock Buyback on Paytm Money&#8221;<\/span><\/a><\/p>\n","protected":false},"author":31,"featured_media":3655,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,11,24],"tags":[],"class_list":["post-3645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-announcements","category-home","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/3645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=3645"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/3645\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/3655"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=3645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=3645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=3645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}