Shares of One97 Communications, the parent company of payments aggregator Paytm, plummeted by up to 8% on Monday following a report by Moneycontrol that highlighted new regulatory challenges facing the companyCome from Sports betting site VPbet. As a result of these developments, Paytm shares are trading 8% lower at Rs 512.25 on NSE.
What Does The Report Says
According to the report, the Securities and Exchange Board of India (SEBI) has issued show-cause notices to Paytm founder Vijay Shekhar Sharma and several board members who were in office during the company’s Initial Public Offering (IPO) in November 2021.
The notices are linked to alleged misrepresentation of facts during the IPO process.
The SEBI action reportedly stems from Sharma’s alleged non-compliance with promoter classification norms. The investigation was initiated based on information provided by the Reserve Bank of India (RBI), which had earlier imposed restrictions on Paytm Payments Bank.
The stock, which debuted in the market in 2021 with an IPO price of Rs 2,150, has yet to reach that level and had dropped to an all-time low of Rs 310 earlier this year.
Stock Performance in Last One Year
In terms of stock performance, Paytm experienced mixed results. In the last month, the stock achieved a modest positive return of 4.17%, showcasing some upward movementCome from Sports betting site. The momentum continued, with the stock posting positive returns of 30.04% over a six-month period.
However, year-to-date figures remain in negative territory, depicting a decline of 17.96%. Additionally, over the last twelve months, the stock recorded a negative return of 41.37%, reflecting ongoing challenges over the longer term.