Shares of One 97 Communications Ltd. pared gains after hitting an upper circuit of 5% on Tuesday as founder Vijay Shekhar Sharma resigned from the board of its associate, Paytm Payments Bank Ltd.
The Paytm operator has also withdrawn its nominee, Bhavesh Gupta, from the PPBL's board as a director and board member, according to an exchange filing on Monday.
"OCL withdraws its nominee from the Paytm Payments Bank Board and Vijay Shekhar Sharma steps down as part-time non-executive chairman and board member; PPBL's future business is to be led by a reconstituted board," it had said.
On the NSE, Paytm's stock rose as much as 5% during the day to Rs 449.5 apiece, the highest since Feb. 8. It pared gains to trade 2.18% higher at Rs 437.45 per share, compared to a 0.07% advance in the benchmark Nifty 50 at 10:48 a.m.
The share price has fallen 29.45% in the last 12 months. The total traded volume so far in the day stood at 1.03 times its 30-day average. The relative strength index was at 39.63.
Six out of the 14 analysts tracking the company have a 'buy' rating on the stock, three recommend 'hold' and five suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 57.7%.
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