Paytm Issues Clarification On Canada App Closure; Shares Hit 52-Week Low

New Delhi: Paytm's mother or father firm, One 97 Communications Ltd, on Wednesday issued a clarification on shutting down its Canada B2C (business-to-consumer) app. The digital funds agency, in a notification to the exchanges, mentioned, "Paytm Canada consumer app is not material to the overall business of the company, contributing less than 0.1 per cent of the revenue (for the last fiscal year ended March 31, 2021."It additionally acknowledged that the transfer "has no impact on Canada-based Paytm Labs (including its R&D -- research and development -- and technical support business) or the company's overall business and revenue."Shares of Paytm fell as a lot as 5.03 per cent immediately to hit an intraday low -- which can also be the 52-week low -- of Rs 990. The inventory has plunged nearly 54 per cent from its difficulty worth of Rs 2,150.As of two:20 pm, the inventory was buying and selling 3.95 per cent decrease at Rs 1,001.30.Last week, the corporate had determined to close down its Canada app beginning March 14."In order to focus all our resources on the massive India opportunity, and given the immateriality of the Canada app, we have decided to sunset the Canada B2C app only," Paytm had mentioned.Paytm had launched its Canada division, referred to as Paytm Labs Inc, as an R&D division, again in 2014.