The dispute has been cited by Paytm in its IPO prospectus under the section ‘criminal proceedings’. Saxena has approached the Securities and Exchange Board of India (Sebi) to stall the IPO, arguing investors could lose money if his claim is proved right, Reuters reported. A Nuvoco vendor filed an insolvency petition against the company in the Mumbai bench of the National Company Law Tribunal (NCLT), alleging non-payment of dues worth over ₹5 crore. However, these are not the first IPO-bound companies to face such last-minute lawsuits. And if these disputes emerge close to the IPO and the listing, then it has a significant impact on the price of the stock.

Source: Mint August 16, 2021 18:33 UTC