Paytm Founder Vijay Shekhar Sharma, on Friday, shared his regret over selecting the bankers for the company’s initial public offering (IPO) in November 2021. Sharma highlighted that choosing the wrong bankers has been one of his biggest regrets, as the company faced significant challenges during its stock market debut.
“I regret not choosing the right bankers for my IPO,” Sharma said on September 27. His statement comes in light of the Securities and Exchange Board of India (SEBI) issuing show cause notices to Sharma and other board members of Paytm over alleged misrepresentation of facts during the IPO process and non-compliance with shareholder classification norms.
Paytm’s IPO Performance and Bankers
The Paytm IPO, which took place from November 8 to November 10, 2021, was managed by several prominent financial institutions, including ICICI Bank, JPMorgan, Goldman Sachs, Morgan Stanley, HDFC Bank, Citi, and Axis Capital. Despite their involvement, Paytm’s shares struggled during the listing. The stock debuted below its issue price, with shares dropping to ₹1,560.80 on the NSE, significantly lower than the final issue price of ₹2,150.
SEBI Show Cause Notice
SEBI recently served show cause notices to Vijay Shekhar Sharma and key Paytm board members regarding allegations of misrepresentation during the IPO and issues related to shareholder classification. The regulator’s investigation has brought further scrutiny to the IPO process and the involvement of the leading bankers.
Paytm Share Today
On Friday, shares of Paytm’s parent company, One 97 Communications Ltd, closed at ₹672.40 on the Bombay Stock Exchange (BSE), down by 4.66% from the previous close of ₹705.25, reflecting ongoing concerns surrounding the company.
Paytm IPO Overview
- IPO Date: November 8, 2021, to November 10, 2021
- Listing Date: November 18, 2021
- Face Value: ₹1 per share
- Price Band: ₹2,080 to ₹2,150 per share
- Lot Size: 6 shares
Listing Day Trading Information:
- Final Issue Price: ₹2,150.00
- BSE Open Price: ₹1,955.00
- Low: ₹1,564.00
- High: ₹1,961.05
- NSE Open Price: ₹1,950.00
- Low: ₹1,560.00
- High: ₹1,955.00
Sharma’s remarks underline the challenges faced by Paytm during its IPO, with scrutiny from both the market and regulators continuing.
