Company complying with Sebi's listing obligations, says Paytm after BSE seeks clarification on sharp fall in share price

One 97 Communications Ltd, Paytm's parent firm, on Tuesday said that the company has been complying with the regulation of the Securities Exchange Board of India (SEBI) and there is no information to share related to the price movement of Paytm, Paytm said in a BSE filing on Tuesday.

The company's response comes after the exchange sought to know about steep fall in the Paytm share price, which have corrected nearly 75% from its issue price on Tuesday. Source: Reuters

One 97 Communications Ltd, Paytm's parent firm, on Tuesday said that the company has been complying with the regulation of the Securities Exchange Board of India (SEBI) and there is no information to share related to the price movement of Paytm, Paytm said in a BSE filing on Tuesday.

The company's response comes after the exchange sought to know about steep fall in the Paytm share price, which have corrected nearly 75% from its issue price on Tuesday.

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The exchange had sought clarification from One 97 Communications Ltd 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.

"We would like to inform you that our Company has been complying with Regulation 30 of the SEBI and have, from time to time, made all necessary disclosures to the Stock Exchanges within stipulated timeline. 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," said Paytm in the regulatory filing.

It reiterated that the business model of the company remains strong.

"The Company would also like to point out the business fundamentals remain robust as demonstrated in our last earning release dated February 04, 2022. 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.

Paytm stock has touched a fresh all-time low of Rs 541 per share on the BSE on Tuesday. The counter has slipped around 34 per cent in the last one month alone.

Paytm shares have traded on record high of Rs 1,961.05 per share on November 18, 2021, on its market debut and was listed at discount of over 9 per cent at Rs 1950 per share as compared to the issue price of Rs 2150 per share.

Paytm shares close lower by 4% to Rs 543.90 per share on the BSE on Tuesday.

Last week, Macquarie Capital Securities (India) Pvt has slashed Paytm share target price further from Rs 700 per share to Rs 450 a share, stating 'the company faces tough time ahead'. It is the fourth time that the brokerage has cut the target price of the shares of India's digital payment solutions provider since their listing on stock exchange last year

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