Paytm Shares Fall Over 4% Amid Sebi Notices
Shares of One97 Communications Ltd, the parent company of Paytm, experienced a sharp decline of over 4% on Monday. The drop followed news that the Securities and Exchange Board of India (Sebi) has issued show-cause notices to Vijay Shekhar Sharma, the company’s founder, and several board members who were in office during its initial public offering (IPO) in November 2021.
On the Bombay Stock Exchange (BSE), the stock fell by 4.41%, closing at Rs 530.05 per share. During trading, it had plunged as much as 8.88%, reaching a low of Rs 505.25. On the National Stock Exchange (NSE), Paytm’s shares dropped 4.47% to Rs 530, with an intra-day low of Rs 505.55, also a decline of 8.88%.
The Sebi notices are related to allegations of misrepresentation of facts regarding the company’s IPO, raising concerns among investors and leading to the significant stock market reaction. This development has heightened scrutiny of Paytm’s financial and regulatory practices, contributing to the decline in its share price.
Investors are closely monitoring the situation as it unfolds, with potential implications for Paytm’s market performance and regulatory standing. The company’s management is expected to respond to the notices and provide clarifications as part of the ongoing investigation.