BSE seeks clarification from Paytm after shares plunge to all-time low

BSE on Tuesday sought clarification from Paytm's parent company, One 97 Communications Ltd, over the sharp fall in its share prices after the stock hit another all-time low today.

"The exchange has 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," the Bombay Stock Exchange (BSE) said in a notification.

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Shares of One97 Communications Ltd, the parent firm of Paytm, tanked 4 per cent intraday to hit an all-time low of Rs 541.15 on the BSE on Tuesday. The market cap of the firm fell to Rs 35,915.27 crore. The shares ended the day 3.79 per cent lower at Rs 543.90.

Shares of the company have been on a downward trend for quite a while now. The stock is down nearly 72 per cent when compared to an all-time high of Rs 1,961 it touched in November last year on the day of its debut.

Recently, global financial major Macquarie slashed its target price for Paytm to Rs 450 per share, citing regulatory headwinds, including a falling probability of getting a banking licence.

This was the second time that the global brokerage firm slashed its target price for the company. It had initiated coverage on the stock in November last year with a target price of Rs 1,200, which was cut to Rs 700 last month.