The 71-year-old former director fought the road to Paytm's IPO, this is the whole matter

The 71-year-old former director fought the road to Paytm’s IPO, this is the whole matter

Paytm IPO: A 71 years ago Direct has urged SEBI to stop Paytm’s IPO. He alleges that he is the co-founder of the company and had invested $27,500 in the company two decades ago, but never got the shares.

Paytm

The initial public offering (IPO) of Rs 16,600 crore ($ 2.2 billion) of digital payment and financial services company Paytm has come in the way. A 71-year-old former direct has urged India’s market regulator to stop the IPO alleging that. He alleges that he is the co-founder of the company and had invested $27,500 in the company two decades ago, but never got the shares.

According to Reuters, Paytm said that Ashok Kumar Saxena’s claim is fake and has filed a case of exploitation of the firm against him at a Delhi police station. Paytm had applied for IPO with the regulator in July. Saxena denied harassment and said that Paytm is in a high profile position, which means a private person like him is not in a position to harass the company.

The matter reached to SEBI

Saxena has approached market regulator SEBI to stop the IPO of Paytm. If their claim turns out to be true, investors could lose their money. However, SEBI has not given any statement in this matter yet.

Sriram Subramaniam of shareholder advisory firm InGovern said the controversy could lead to the regulator ordering a probe and making it difficult or delayed to approve Paytm’s IPO. The value of Paytm IPO can be up to $ 25 billion. Subramanian said, SEBI will ensure that after listing, it does not affect the company and its shareholders.

Whatever the regulator decides, this controversy could turn out to be a legal headache for Paytm’s much-awaited IPO. Its investors are Alibaba of China and SoftBank of Japan.

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