One97 Communications, the parent company of Paytm, said its business fundamentals remain robust and the company has no information on what may have been bearing on the price/ volume behaviour of its stock, it said in a stock exchange filing. Paytm was responding to BSE’s letter to the company seeking clarification after the share price hit a fresh low of Rs 541 apiece on Tuesday. Since its listing in November, almost 75% of the IPO allottees’ investment value have been eroded as the stock has corrected sharply from its issue price of Rs 2,150 apiece. On Wednesday, shares were up over 1% at Rs 550.20 apiece in early trading.
“Further, 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 04, 2022,” the company said in a filing on Tuesday.
“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,” it added.
At the time of its listing on the stock exchanges, Paytm shares started trading at Rs 1,955 per share, 9% lower than the issue price; the shares closed 27% down on the same day. Paytm stock has since been on a freefall. Year-to-date, the stock has erased nearly 60% of value. Analysts have said that shares of new age tech firms like Paytm were overvalued, and are now expected to correct.
Earlier this month, Reserve Bank of India barred Paytm’s payments unit, Paytm Payments Bank Ltd (PPBL), from onboarding new customers. citing “certain material supervisory concerns”. It also asked PPBL, which is jointly owned by One 97 Communications and Paytm founder Vijay Shekhar Sharma, to conduct IT audits. The company said it will comply with RBI orders.
