Paytm management gets Sebi show cause notice over timing of 2023 loan disclosure announcement
The management of One 97 Communications, the parent company of Paytm, have received a show-cause notice from the Securities and Exchange Board of India (Sebi)
The management of One 97 Communications, the parent company of Paytm, have received a show-cause notice from the Securities and Exchange Board of India (Sebi) concerning the timing of disclosure of certain information and its classification as unpublished price-sensitive information.In a regulatory filing, the company said the market regulator’s notice was dated August 11, 2026 and relates to the company's corporate announcement dated December 6, 2023.Paytm said the key managerial personnel are evaluating the show-cause notice and will respond within the prescribed timeline. The response to the notice has to be submitted within 14 days from the date of receipt, which was August 11, 2026.Read more: Paytm shares recover 410% from 2024 low, but will long-awaiting IPO investors finally see redemption?The notice relates specifically to the timing of disclosure of certain information and its classification as unpublished price-sensitive information in connection with the December 6, 2023 corporate announcement.
The company did not provide further details on the nature of the information in the announcement.Paytm said no financial impact on the company is expected from the show-cause notice.Paytm Q1 results snapshotThe fintech company reported a strong performance for the quarter ended June 2026, with consolidated net profit rising 79% year-on-year to Rs 220 crore from Rs 123 crore in the corresponding quarter last year.Read more: Paytm remains majority Indian-owned for 2nd consecutive quarterRevenue from operations rose 28% year on year to Rs 2,448 crore from Rs 1,918 crore. On a sequential basis, revenue increased 8% from Rs 2,264 crore in the March quarter. Total income for the quarter stood at Rs 2,630 crore, up 22% from Rs 2,159 crore a year ago and higher than Rs 2,442 crore in the previous quarter.Earlier this week, Bernstein raised its target price on the stock to Rs 2,200 from Rs 1,500, while retaining its Outperform rating.
The revised target is the highest on the Street and marks the first time Paytm has received a target price above its IPO price.Paytm made its stock market debut in July 2021 at an issue price of Rs 2,150, a level the stock has not returned to since its listing. Bernstein said it has incorporated the introduction of merchant discount rate (MDR) on UPI transactions into its base case from FY28 onwards.The target price hike comes as Bernstein incorporates the introduction of MDR on UPI transactions into its base case from FY28E onwards. The brokerage expects MDR to improve Paytm's net payments margin by around 3-4 basis points, resulting in an estimated 30% increase in FY30E EPS compared with its previous forecasts.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
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