Paytm Share at All-Time Low: No Undisclosed Price-sensitive Information, Says Company after BSE Asks
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Amid shares of One97 Communications witnessing continuous fall and touching all-time lows, the parent firm of digital payments major Paytm on Wednesday said its business fundamentals are robust and there is no price-sensitive information that is yet not disclosed to the stock exchanges.
“The company would also like to point out the business fundamentals remain robust as demonstrated in our last earning,” One97 Communications, the parent firm of Paytm, said in a BSE filing.
In the early trade on Wednesday, the company’s shares touched a fresh all-time low of Rs 541 apiece and then swung upwards to trade marginally 0.23 per cent higher at Rs 545.5 apiece. Since its listing in November 2021, the company has wiped out more than Rs 1 lakh crore in market capitalisation.
“As on date, there is no information/ announcement, which in our opinion may have a bearing on the price/volume behaviour in the scrip of the company and which is yet not disclosed to the stock exchanges,” the company stated.
It said the company is committed to complying with the listing regulations and any information/announcement, likely to have bearing on the price/volume of the shares of the company, will be disclosed, from time to time, to the stock exchanges within the stipulated timeline.
On Tuesday, the BSE had sought a clarification from One 97 Communications Ltd with reference to the significant movement in its share price, in order to ensure that investors have the latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded.
Shares of Paytm have eroded about 75 per cent of investors’ wealth from its IPO issue price of Rs 2,150 apiece.
The company got listed on the bourses in November 2021. In the past month, the stock has tanked 32 per cent, owing to persistent negative news flow. In comparison, the S&P BSE Sensex was down marginally by 0.21 per cent during the same period. The stock hit a record high of Rs 1,961.05 on November 18, 2021, in intra-day trade, but failed to touch its issue price post listing.
The Reserve Bank of India (RBI) on March 11 barred Paytm Payments Bank Ltd (PPBL) from onboarding new customers with immediate effect because of certain supervisory concerns. PPBL processes transactions for India’s digital payments giant Paytm.
“Paytm stock is in a continuous downtrend on negative sentiments and may touch the levels of 500 – 450 in the near term. Investors must avoid this stock for time being,” said Ravi Singh, vice-president of ShareIndia.
Proficient Equities founder and director Manoj Dalmia said further fall in prices is expected as there is no support, it might drop till Rs 425 levels which might be scary for investors.
“Buying is suggested after some price reversals with a proper base formation and crossing above Rs 800 levels. Fundamentally a good quarterly result along with proper business guidance might drive up the prices which might be a good time to buy,” he added.
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