One 97 Communications, the parent company of payment platform Paytm, said on Wednesday that its trading fundamentals remain strong and there are no news/announcements that may impact the price/volume behavior of the action which has not yet been disclosed to the stock exchanges.
Shares of Paytm have seen a sharp fall this month, falling nearly 32% to Rs 543.90 each on BSE Tuesday.
He further stated that the company has made all necessary disclosures to exchanges within the required time frame.
In a filing with the ESB, the company said: “We would like to reiterate that the company is committed to complying with the listing rules and any information / announcements that may affect the price / the volume of the company’s shares would be disclosed, from time to time, to the stock exchanges within the stipulated time. »
Paytm’s announcement was in response to a query from ESB. On Tuesday, Asia’s oldest stock exchange sought clarification from One 97 Communications regarding the significant share price move, to ensure investors have the latest relevant information and safeguard investors’ interest. .
Paytm shares fall 75% since IPO launch
Since he made a weak start On the stock market in November last year, Paytm shares saw a significant drop, falling almost 75% from its offer price to an all-time low of Rs 541 each on BSE on Tuesday.
Earlier this month, the The Reserve Bank of India (RBI) led Paytm Payments Bank to stop onboarding new customers with immediate effect and to conduct a full audit of its IT system, citing “material monitoring concerns”. Since the announcement of this measure by the central bank, the title has collapsed by more than 30%.
What should investors do?
Commenting on recent developments surrounding Paytm, Ravi Singh, Vice President and Head of Research at Share India Securities, said: “RBI’s recent ban on Paytm from adding new customers due to likely shortcomings in its technology systems harms seriously to business sentiments. The headline reflected the immediate negative effect and a selloff triggered with a low probability of a rebound. However, Paytm has already onboarded a very large payment bank customer base, but the ban will affect their chances of moving to a smaller financial bank.
He noted that due to the negative developments, Paytm stock is continuously falling and could touch the levels of Rs 500-450 in the short term. He said investors should avoid this stock until sentiment stabilizes.