Shares of One97 Communications Ltd., the parent company of Paytm, fell over 5% today amid growing regulatory scrutiny following a show-cause notice issued to founder Vijay Shekhar Sharma.
Paytm share performance today:
As of 2:14 PM, Paytm’s stock was trading at ₹524.00, down ₹30.85 or 5.56% from the previous close. The day’s trading saw significant volatility:
- Open: ₹559.80
- High: ₹565.45
- Low: ₹505.55
- Previous Close: ₹554.85
- Average Price: ₹530.55
The decline in Paytm’s share price comes after a Moneycontrol report revealed that the Securities and Exchange Board of India (SEBI) has issued show-cause notices to Sharma and other board members regarding alleged misrepresentation of facts during the company’s Initial Public Offering (IPO) in November 2021. The notices are particularly focused on Sharma’s compliance with promoter classification norms, which have raised concerns among investors.
This regulatory action follows a series of challenges for Paytm, particularly related to its banking arm, Paytm Payments Bank, which has faced restrictions from the Reserve Bank of India (RBI) due to persistent non-compliance issues. The RBI’s earlier directives had already impacted Paytm’s operations, leading to a significant decline in its market capitalization.
Paytm’s shares have been under pressure for some time, having fallen significantly since their IPO price of ₹2,150. The company’s stock hit an all-time low of ₹310 earlier this year, and despite recent attempts to recover, the ongoing regulatory challenges continue to weigh heavily on investor sentiment.
As the situation develops, market participants will be closely monitoring Paytm’s response to the show-cause notice and any potential implications for the company’s operations and financial performance.
