MUMBAI: The inventory worth of One97 Communications, which operates Paytm, crashed 9% on Monday after a report stated that Sebi had issued show-cause notices to its founder-chairman Vijay Shekhar Sharma and those that had been on its board when the company listed in Nov 2021. The company clarified that the notices had been “not new” after buying and selling hours.
The notices sought to make clear if Sharma was a promoter and certified as a big shareholder through the IPO.Promoters, below Sebi guidelines, are not eligible to get inventory choices from the company.
After the information report was revealed late session, Paytm’s inventory worth on the BSE crashed from about Rs 555 to Rs 505 – a 9% loss. After that it recovered some floor to shut at Rs 530, down over 4% on the day. Total traded quantity within the counter additionally jumped to 14.2 lakh shares from its two-week common of seven.8 lakh. Later, the company stated the notices had been already disclosed in its FY24 annual report and June quarter monetary outcomes.
“(This) is not a new development, as the company had already made relevant disclosures on this matter in its financial results for the quarter and year ended March 31, 2024, as well as the June quarter,” it stated to the inventory exchanges. “The company is in regular communication with the (Sebi) and making necessary representations regarding this matter. Accordingly, there is no impact on the financial results for previous quarters ended June 30, 2024, and March 31, 2024, respectively.”
According to a launch from the company, its auditor’s overview report had acknowledged that the administration obtained an impartial authorized opinion and primarily based on the identical the company believed that it was compliant with the related rules.
Earlier this yr, RBI had imposed a ban on Paytm Payments Bank, an arm of the company, from providing incremental banking companies. Its inventory worth had greater than halved after the diktat and continues to be down 30% from its Jan 29 degree of Rs 761. At present ranges, the inventory is buying and selling at 1 / 4 of the IPO worth (Rs 2,150)
The notices sought to make clear if Sharma was a promoter and certified as a big shareholder through the IPO.Promoters, below Sebi guidelines, are not eligible to get inventory choices from the company.
After the information report was revealed late session, Paytm’s inventory worth on the BSE crashed from about Rs 555 to Rs 505 – a 9% loss. After that it recovered some floor to shut at Rs 530, down over 4% on the day. Total traded quantity within the counter additionally jumped to 14.2 lakh shares from its two-week common of seven.8 lakh. Later, the company stated the notices had been already disclosed in its FY24 annual report and June quarter monetary outcomes.
“(This) is not a new development, as the company had already made relevant disclosures on this matter in its financial results for the quarter and year ended March 31, 2024, as well as the June quarter,” it stated to the inventory exchanges. “The company is in regular communication with the (Sebi) and making necessary representations regarding this matter. Accordingly, there is no impact on the financial results for previous quarters ended June 30, 2024, and March 31, 2024, respectively.”
According to a launch from the company, its auditor’s overview report had acknowledged that the administration obtained an impartial authorized opinion and primarily based on the identical the company believed that it was compliant with the related rules.
Earlier this yr, RBI had imposed a ban on Paytm Payments Bank, an arm of the company, from providing incremental banking companies. Its inventory worth had greater than halved after the diktat and continues to be down 30% from its Jan 29 degree of Rs 761. At present ranges, the inventory is buying and selling at 1 / 4 of the IPO worth (Rs 2,150)
