BSE seeks info from Paytm on share price freefall

Bengaluru: The Bombay Stock Exchange (BSE) has sought a clarification from Paytm on the steady slide in its stock price over the past few days. Paytm’s stock had taken a severe beating last week after the Reserve Bank of India (RBI) banned Paytm Payments Bank from adding new users. The stock continued its slide on Tuesday, closing nearly 4% down at Rs 543.90 on BSE.

This is an all-time low for the company’s stock price. Paytm’s issue price was Rs 2,150 when it listed on the bourses last November.

“The Exchange has sought clarification from One97 Communications Ltd (Paytm’s parent firm) 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,” BSE said in a note on Tuesday evening.

BSE typically seeks a clarification when a stock loses significant value, and Paytm shares are now trading around 74% lower than its issue price. Last week, the RBI banned Paytm Payments bank from onboarding new users over failures in compliance and mandated an IT audit. Paytm founder Vijay Shekhar Sharma owns 51% of Paytm Payments Bank while One97 Communications owns the rest.

Following the RBI ban, Macquarie Capital cut Paytm’s target share price to Rs 450.

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