One97 Communications Ltd, the parent company of fintech behemoth Paytm, may be unable to use the proceeds of its mega IPO to fund the proposed share buyback plan.
According to sources, the fintech firm cannot use the proceeds because rules prohibit such a move. Paytm will instead use its liquidity for this purpose. The company announced last week that its board of directors will meet on December 13 to consider a share buyback proposal. There has been speculation that the company is using its IPO funds for the buyback, which is against regulations.