Share Price Of Paytm Climbs 3 Per Cent In Early Trade After Clarification To BSE Query

The BSE on Tuesday sought an explanation from One 97 Communications over the sharp fall in its share prices

New Delhi: Paytm’s parent company One 97 Communications’ share price jumped over 3 per cent during early trade on Wednesday after the online payments firm sent clarification to the BSE regarding a query.

The BSE on Tuesday sought an explanation from One 97 Communications over the sharp fall in its share prices. At 9:21am, One 97 Communications was quoting at Rs 555.25, up Rs 11.35, (2.09 per cent) on the BSE.

In a statement, the BSE said, “Exchange has sought clarification from One 97 Communications on March 22, 2022 with reference to significant movement in price in order to ensure that investors have latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded.”

One 97 Communications on Wednesday clarified that the company has been complying with Regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) and have, from time to time, made all necessary disclosures to the stock exchanges within stipulated timeline.

“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 would also like to point out the business fundamentals remain robust as demonstrated in our last earning release dated February 4, 2022,” it noted.

The statement also said, “We would like to reiterate that the company is committed to comply with the Listing Regulations and any information/ announcement likely to have bearing on the price/ volume of the shares of the company would be disclosed, from time to time, to the stock exchanges within stipulated timeline.”

One 97 Communications had asked for a market capitalisation of Rs 1,39,432.7 crore at an issue price of Rs 2,150, which has plunged to Rs 35,273.23 crore. The stock has seen an erosion in market capital of Rs 1.04 lakh crore in the past four months.

Last week, Macquarie Capital Securities had slashed the target price of One97 Communications to Rs 450, down 36 per cent as compared to Rs 700 it had predicted in February.

The brokerage firm sharply marked down its valuation estimate for Paytm in line with the derating since in global financial technology companies. Paytm's shares lost a major portion of their value after Paytm Payments Bank, a subsidiary of Paytm, came under the Reserve Bank of India (RBI) scanner.