Paytm share price: BSE seeks info from Paytm on share price freefall

Bangalore: The Bombay Stock Exchange (BSE) has sought an explanation from Paytm on the continuous fall in its share price over the past few days. Paytm’s stock fell sharply last week after the Reserve Bank of India (RBI) barred Paytm Payments Bank from adding new users. The stock continued its decline on Tuesday, falling nearly 4% to close at Rs 543.90 on BSE.

This is the lowest level ever for the company’s share price. Paytm had an issue price of Rs 2,150 when it was listed on exchanges last November.

“The Exchange has sought clarification from One97 Communications Limited (Parent Firm of Paytm) on March 22, 2022 with regard to significant price fluctuations, to ensure that investors have the latest relevant information about the Company and The market should be informed so that the interest investors are protected,” BSE said in a note on Tuesday evening.

BSE usually seeks an explanation when a stock has lost significant value, and Paytm shares are now trading at around 74% below their issue price. Last week, the RBI barred Paytm Payments Bank from inducting new users over failures in compliance and made IT audits mandatory. Paytm founder Vijay Shekhar Sharma owns 51% of Paytm Payments Bank, while One97 Communications owns the rest.

Following the RBI ban, Macquarie Capital raised the target share price of Paytm to Rs 450.

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Originally published at Pen 18