Share of One97 Communications, the operating company of Paytm, on March 23, climbed nearly 13%, its biggest gain in four months, on the back of higher volumes.

The One97 Communications stock hit a high of Rs 592.40 on the BSE, up 13%, its biggest gain since November 24, 2021. At 1:33 pm, the stock was trading at 581.95, up 10.97% from its previous close.

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The stock has been falling since listing and has tumbled over 70% from its issue price of Rs 2,150. It was listed on stock exchanges on November 18, 2021. The company’s market capitalisation is Rs 37,740 crore against Rs 1.38 lakh crore at the time of its IPO. On Wednesday, One97 Communications shares closed 3.59% down at Rs 524.40 on the BSE.

On Thursday, Paytm shares closed 47.10 points or 8.98% higher at Rs 571.40.

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In its latest note, Dolat Capital rated the stock to buy and lowered its target price to Rs 1,620 from Rs 2,500. The brokerage firm said that the Paytm Payments Bank being barred from accepting new customers will not have a big impact on the company’s financials, but will hurt growth confidence. The RBI’s action will affect Paytm’s long-term revenue growth by approximately 100 basis points, it added.

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On March 23, the BSE sought clarification from One97 Communications over the sharp fall in its stock prices. “The exchange has sought clarification from One 97 Communications 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 BSE said, adding that the reply is awaited.

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In a filing to exchanges on March 23, One97 Communications said its business fundamentals remain robust and it has no information that may have a bearing on the price-volume behaviour in the share price. The company said it has, from time to time, made all necessary disclosures to stock exchanges within the stipulated timeline.