Merchant bankers under suspicion over paytm scam

Merchant banker likely to be questioned by SEBI

MUMBAI: Shares of Paytm, the largest IPO company in the history of the Indian stock market, have plunged into a 3% slump on the first day of listing. The high valuation of the company by the merchant banker has come under suspicion in this case and the possibility of his being questioned by SEBI has been expressed.

It may be noted that on the day of listing, Paytm's stock plunged by 4%, causing a loss of Rs 2,000 crore to investors.

Informed sources said that whether the statements made by the company officials and bankers were misleading or misleading to the investors could be investigated. SEBI has written to the Association of Investment Bankers of India (AIBI), an association of merchant bankers, in this regard.

According to the latest information, SEBI has asked merchant bankers to provide details of the average price of acquisition of shares and risk for investors in the offer for sale (OFS) in the price band announcement. SEBI will also examine the trading pattern of Paytm's stock on the day of listing.

In a letter to the Merchant Bankers' Association, SEBI has asked for the release of the information in four parts, namely, period, weightage of average cost of acquisition, price limit against average cost of acquisition and range of acquisition price i.e. minimum value and maximum.

Concerns have also been raised about other IPOs, including OYO

Following the poor listing of Paytm, there are now concerns over IPOs of other companies, including Oyo. Six news analysts and bankers said that other news companies, such as MobiQuick and hotel aggregator Oyo, could also face difficulties in investing profits and higher valuations in the wake of the Paytm scandal.

Paytm running at a loss .. Rs. Analysts, who have expressed concern over the valuation of the Rs 15,400 crore IPO, were warned by analysts that the ambiguous business model and too high valuations do not fit into the current market.