Paytm’s parent company One97 Communications has told BSE that it does not have any information that could have an impact on the price and volume of stocks.
Paytm Share Update: The shares of One 97 Communications Ltd (Paytm) have been witnessing a steady decline since the listing. Share is making its record low on the day. When the company’s IPO came, the issue price was kept at Rs 2150. Whereas today the stock has fallen 74 percent from the issue price and has come to a price of Rs 544. Paytm has given a clarification to BSE on the huge fall in stocks. Parent company One97 Communications has said that it does not have any such information, which could have an impact on the price and volume of the stocks. On Tuesday, the BSE had sought a response from the company on the fall in the stock.
Business fundamentals strong
Paytm said in a filing given on the stock exchange today that the company’s business is completely strong. Business fundamentals remain strong, as reflected in the results released on February 4, 2022. The company is fully committed to complying with the rules relating to listings. Any such information or announcement made by the company, which may have a bearing on the price and volume of the share, shall be communicated to the stock exchange within the stipulated time.
Let us inform that after the continuous fall in the stock of Paytm, BSE had sought clarification from the company, so that investors can get new information related to the company and their interests are not harmed in any way.
Huge drop from issue price
The company’s stock was listed in the market on 18 November 2021. It was listed at Rs 1955 as against the issue price of Rs 2150, which is a record high. On the listing day, it fell 27 percent and closed at Rs 1564. Presently the share is at Rs 544. That is, it has become 74 percent weaker than the issue price. Payment company Paytm has not come into profit yet. At the same time, the deficit has increased in the December quarter of FY 2022. However, Paytm saw an increase in income from work. The company’s revenue has increased by 89 percent to Rs 1456 crore.
Shares may weaken further
Recently, brokerage house Macquarie analyst Suresh Ganapathy has cut the target price on the stock of Paytm to Rs 450 by making a big cut. Earlier, Macquarie had reduced the target for the stock from Rs 900 to Rs 700. Whereas even before that the brokerage had given a target of Rs 1200 for the stock. The brokerage has maintained an underperform rating for the stock. And there has been no change in the estimate of revenue.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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