Amid stocks of One97 Communications that are witnessing a continued decline and hitting an all-time low, the parent company of major digital payments, Paytm, said on Wednesday that company fundamentals are robust and there is no price-sensitive information not yet on the exchanges. has been announced.
“The company would also like to point out that business fundamentals remain robust, as evidenced by our latest earnings,” One97 Communications, Paytm’s parent company, said in a BSE filing.
In early trading on Wednesday, the company’s shares hit a new low of Rs 541 apiece and then swung upward to trade marginally 0.23% 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 cap.
As at this day, there is no information/announcement that we believe could influence the price/volume behavior in the company’s thesis that has not yet been disclosed to the exchanges,” the company said.
It said the company is committed to complying with the listing rules and that any information/announcements that could affect the price/volume of the company’s shares will be disclosed to the exchanges from time to time within the stipulated term. timeline.
On Tuesday, the BSE had requested clarification from One 97 Communications Ltd regarding the significant movement in its share price, to ensure investors have the latest relevant information about the company and to inform the market so as to protect the investor’s interests. is safeguarded.
Shares of Paytm have affected about 75 percent of investors’ assets due to the IPO issue price of Rs 2,150 each.
The company was listed on the stock exchanges in November 2021. Over the past month, the stock has fallen 32 percent due to continued negative news flows. In comparison, the S&P BSE Sensex fell marginally 0.21 percent over the same period. The stock hit a record high of Rs 1,961.05 on November 18, 2021 in intra-day trading, but failed to reach the issue price after listing.
The Reserve Bank of India (RBI) banned Paytm Payments Bank Ltd (PPBL) on March 11 from taking on new clients with immediate effect due to certain oversight issues. PPBL processes transactions for Indian payment giant Paytm.
“Paytm stocks are in a continuous downward trend due to negative sentiments and could hit the 500-450 levels in the near term. Investors should avoid this stock for now,” said Ravi Singh, vice president of ShareIndia.
The founder and director of Proficient Equities, Manoj Dalmia, said a further price decline is expected as there is no support, and it could fall to a level of Rs 425, which could be scary for investors.
“Buying is recommended after some price reversals with good base formation and crossing Rs 800 levels. Essentially, a good quarterly result along with good business guidance could drive prices up which could be a good time to buy,” he added to.
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