Should you buy, sell or hold Paytm shares? How market guru Anil Singhvi views One97 now?
Paytm shares remained unaffected despite the media news round concerning the SEBI's show cause notice.
Paytm shares are in focus today after the fintech company issued a clarification on the media news saying "Vijay Shekhar Sharma, Paytm directors face Sebi show-cause notices over IPO breaches". Upom the clarification made, the company's shares in Tuesday's trade jumped over 3 per cent to Rs 548.7 at the day's high.
Paytm's clarification on the matter
The company in an exchange filing said, "the company had already made relevant disclosures on this matter in its financialresults for the quarter and year ended March 31, 2024, as well as the quarter ended June 30, 2024.
The Company is in regular communication with the Securities Exchange Board of India (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, it added.
Understandably, the show cause notice was issued in respect of the ESOPs issued to the company's MD and CEO in 2022.
Why the disclosure was required from Paytm?
Media reports stated that Vijay Shekhar Sharma and other board members faced show-cause notices from the SEBI for alleged misrepresentation of facts. The notices were concerning Sharma's alleged ineligibility as the promoter.
How market guru Anil Singhvi advises on Paytm stock?
The fintech player has made a clarification that media news concerning SEBI notice is not a new development and in its respect the company is in constant touch with the market watchdog.
Further, the company has clarified that due to the notice there was no impact on the company's earnings in the June quarter.
Anil Singhvi maintains buy on Paytm stock
Singhvi suggest to buy the stock for a target of Rs 540, 550 at a price of around Rs 530.4, keeping a stop loss of Rs 520.