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Paytm secures finance ministry approval for investment in payment…

28 August 2024
by admin

Paytm, a prominent fintech company, has secured approval from the finance ministry to invest in its payment services business, the company announced on Wednesday.
The company, officially known as One 97 Communications, has been under the watchful eye of banking regulator and financial crime-fighting agency following the central bank’s directive in January to shut down its payments bank.
With the recent approval, Paytm plans to submit a new application to the ministry to regain the license for its payments services business. The company said that Paytm Payment Services will continue to provide online payment aggregation services to existing partners.
Although Paytm did not disclose the specifics of the approved investment, Reuters reported in July, based on information from a senior finance ministry official, that the company had obtained approval for a 500 million rupee (approximately $6 million) investment in its payments division.
Paytm Payment Services, a significant component of the fintech firm’s operations, contributed a quarter of its consolidated revenue in the fiscal year that ended in March 2023.
In July, Vivek Joshi, financial services secretary, said that the company could approach India’s central bank to apply for a payment aggregator license, which the bank would then assess.
On the day of the announcement, Paytm’s shares closed 1.3% lower. Since the central bank’s order to wind down the payment bank in January, the company’s shares have declined by more than 29%.

Science & Environment

Stocks To Watch: Ultratech, Paytm, HCL Tech, Vedanta, TCS,…

27 August 2024
by admin

Stocks To Watch On August 27: Domestic markets kicked off the week on a positive note, driven by a dovish stance from the US Fed. In today’s trade, shares of Ultratech, Paytm, HCL Tech, Gland Pharma, and GPT Infra will be in focus due to various news developments.

UltraTech Cement: The company raised $500 million through a sustainability-linked loan with participation from six banks.

Bondada Engineering: The company received a Letter of Award for a project worth ₹575.74 crore from Lumina Clean Energy, Purelight Energy, and VVKR Photovoltaics Energy, special purpose vehicles formed by Paradigm IT Technologies and Metalcraft Forming Industries.

Medi Assist Healthcare Services: The company’s subsidiary Medi Assist Insurance TPA signed definitive documents for the 100% acquisition of Paramount Health Services & Insurance TPA from Fairfax Asia and the Shah family. This acquisition will grow Medi Assist’s TPA market share to 36.6% for the group segment and 23.6% of the health insurance industry by premiums managed.

PI Industries: The company appointed Sanjay Agarwal as Group Chief Financial Officer, effective August 26, following the retirement of Manikantan Viswanathan.

Paytm: The company Issued a clarification regarding recent media reports about a notice from SEBI. The company stated this is not a new development and had previously disclosed the matter in its financial results for the quarter and year ended March 31, 2024, and the quarter ended June 30, 2024.

Mazagon Dock Shipbuilders: Sanjeev Singhal, Director (Finance), has been entrusted with the additional charge of Chairman and Managing Director (CMD) for five months, effective August 1.

Repro India: Ashish Kacholia sold a 1.22% stake in Repro India at an average price of Rs 625 per share. JVS Joyrass Holdings bought a 0.7% stake at the same price.

Gland Pharma: One of the board of directors’ members, Qiyu Chen has not received security clearance from the Ministry of Home Affairs, Government of India, and will cease to continue as a Director, effective August 30.

AU Small Finance Bank: DSP Mutual Fund bought a 1.39% stake in the company at an average price of Rs 630 per share. Fincare Business Services sold a 1.7% stake at the same price.

Medplus Health Services: Lavender Rose Investment exited Medplus by selling its entire shareholding of 11.35% at an average price of Rs 616.48 per share. ICICI Prudential Mutual Fund picked up a 4.3% stake at an average price of Rs 616 per share, and the Government of Singapore bought a 0.97% stake at an average price of Rs 616.2 per share.

GPT Infraprojects: The company launched its qualified institutions placement (QIP) issue on August 26, with the floor price fixed at ₹183.83 per share.

HCL Technologies: The company extended its strategic AI-driven engineering services and digital process operations (DPO) partnership with Xerox. HCLTech will support the newly formed Xerox Global Business Services organization (GBS) in driving key business metrics.

Lemon Tree Hotels: The company signed a new property, Lemon Tree Hotel, Civil Lines, Ayodhya. The 80-room hotel is expected to open in FY28 and will be managed by its subsidiary, Carnation Hotels.

MEP Infrastructure Developers: Elara India Opportunities Fund and Polus Global Fund exited MEP by selling a 1.09% stake each at an average price of ₹8.43 per share. Vani Agencies bought a 2.66% stake at the same price.

KPI Green Energy: The company’s wholly-owned subsidiary, Sun Drops Energia Private Ltd, received letters of intent to execute solar power projects with a cumulative capacity of 13.30 MW under the captive power producer segment. Orders awarded by Sumicot, Ekta Prints Private, Radhika Fabrics, and Sanjopin Industries.

Vedanta: The company, led by Anil Agarwal, has prepared a Rs 30,000 crore war chest through recent funds raised via a qualified institutional placement (QIP), offer for sale (OFS), and dividend. The funds will be used for deleveraging, improving capital structure, and pursuing growth opportunities. Vedanta’s Q1 profit after tax grew 54% YoY to Rs 5,095 crore. The company also recorded its highest-ever alumina production at Lanjigarh and reduced production costs by 20% YoY. The mining major’s debt stood at Rs 6,130 crore as of June 302.

Alembic Pharmaceuticals: The company received USFDA approval for its generic Betamethasone Valerate Foam, used to treat moderate-to-severe psoriasis of the scalp. The approved ANDA is therapeutically equivalent to Luxiq Foam (0.12%) by Norvium Bioscience3.

Godfrey Phillips: US-based proxy advisory firm Glass Lewis advised shareholders of Godfrey Phillips to vote against the reappointment of Bina Modi as Managing Director at the AGM on September 6. The firm cited concerns over her remuneration and lack of defined performance conditions. The company is currently experiencing a boardroom and succession battle between Bina Modi and her son, Samir Modi3.

TCS: Suresh Muthuswami, head of TCS’s $15 billion North American business, resigned in early August. Amit Bajaj, the president of the North American region, will take over his responsibilities. Under Muthuswami’s leadership, TCS’s North American business generated 51.1% of the company’s $29.1 billion revenue for FY243.

YES Bank: The bank appointed Sumit Bali as the country head of debt management and retail assets. Bali will drive the growth and profitability of the bank’s retail and rural assets and debt management businesses. He previously held leadership roles at Axis Bank, India Infoline Group, and Kotak Mahindra Bank3.

Brightcom Group: The company reported a net loss of Rs 24.2 crore for the quarter ending December 30, 2023, with revenue declining by 85% year-on-year to Rs 453.2 crore. The company attributed the poor performance to the war in Israel, the departure of its CEO and CFO, negative media coverage post-SEBI order, and multiple challenges faced by the board. The auditors flagged concerns over the interim financial statements and shareholding disclosures. Brightcom Group shares remain suspended for trading, and the company has yet to declare results for the March and June quarters.

Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Science & Environment

Paytm’s Vijay Shekhar Sharma, Others Face Sebi Show-Cause Notices…

26 August 2024
by admin

Last Updated: August 26, 2024, 14:14 IST

Paytm CEO Vijay Shekhar Sharma

The Securities and Exchange Board of India (Sebi) has issued show-cause notices to Vijay Shekhar Sharma

The Securities and Exchange Board of India (Sebi) has issued show-cause notices to Vijay Shekhar Sharma, founder of One 97 Communications Ltd (Paytm’s parent), and board members who served during its initial public offering in November 2021 for alleged misrepresentation of facts, two people with direct knowledge of the matter, moneycontrol.com reported.

Shares of One97 Communications Ltd., parent company of payments aggregator Paytm fell as much as 8%.

The report states citing sources that market regulator Securities and Exchange Board of India (SEBI) has issued show-cause notices to Paytm founder Vijay Shekhar Sharma and board members who served at the company during its Initial Public Offering (IPO) in November 2021 for alleged misrepresentation of facts.

The notices issued by SEBI pertain to Sharma’s alleged non-compliance with promoter classification norms, the report further stated, adding that the probe was initiated based on inputs from the Reserve Bank of India (RBI), which had earlier imposed restrictions on the Paytm Payments Bank earlier.

News18.com has not independently verified this report.

Shares of Paytm are currently trading 8 per cent lower at Rs 512.25. The stock had gone public in 2021 at an IPO price of Rs 2,150, a level that it has not seen till date and fell to an all-time low of Rs 310 earlier this year.

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious abo…Read More

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Stocks To Watch: Zomato, Paytm, Adani Ent, Wipro, Vi,…

18 June 2024
by admin

Stocks to watch on June 18: Domestic indices Sensex and Nifty hit their new closing lifetime highs on Friday, following buying in market heavyweights. In today’s trade, shares of Zomato, Paytm, HAL, Som Distilleries, Adani Enterprises, TCS among others will be in focus due to various news developments.

Vodafone Idea: Vodafone Idea is preparing to sell its entire $2.3 billion stake in Indus Towers through block deals next week. The stake, totaling 21.5 per cent and held through various entities, may be divested fully or partially based on market demand. This move aligns with Vodafone Idea’s strategy to secure funds for its expansive 5G rollout and bolster 4G coverage.

IndiGo: According to the Directorate General of Civil Aviation, IndiGo’s domestic passenger market share rose to 61.6 per cent in May from 60.6 per cent in April.

Pidilite Industries: Pidilite Industries’ joint venture, ICA Pidilite Private Ltd, has entered into an agreement with Industria Chimica Adriatica SPA (ICA) for the licensing of specific UV technology. This strategic move aims to enhance Pidilite’s capabilities in its niche sectors.

Central Bank of India: The Reserve Bank of India (RBI) has levied fines of Rs 1.45 crore on Central Bank of India and Rs 96.4 lakh on Sonali Bank PLC for non-compliance issues related to loans, advances, and Know Your Customer (KYC) norms.

Brightcom Group: Brightcom Group has committed to releasing its annual results by July 31. Trading of its shares on both BSE and NSE remains suspended pending compliance with the NSE’s master circular. Despite delays, the company is optimistic about avoiding prolonged suspension by reporting its Q3 and Q4 FY24 results by June 11.

LIC: LIC has clarified recent reports regarding its potential entry into the health insurance market through acquisition. The company stated that while it evaluates various strategic opportunities, including partnerships and investments, no formal proposal for such a venture has been initiated at this time.

SpiceJet: SpiceJet’s market share dropped to 4.0 per cent from 4.7 per cent, according to the Directorate General of Civil Aviation.

RIL: Reliance Jio’s technology and telecom industry collaboration with TM Forum has seen an 80% increase in resource contribution from its members, chairman Akash Ambani said.

Hindustan Aeronautics: Hindustan Aeronautics Limited (HAL) said the Defence Ministry has issued a request for proposal (RFP) for 156 light combat helicopters (LCH).

Zomato, Paytm: Online food delivery platform Zomato said on Sunday that it is in talks with Paytm to acquire the financial technology company’s movies and events business.

Wipro: Wipro extended its partnership with Hanesbrands, an apparel brand, to further drive its digital transformation, business growth, and enhance long-term profitability.

Bharti Airtel: Bharti Airtel prepaid Rs 7,904 crore to the department of telecom to clear high cost deferred liabilities for spectrum acquired in 2012 and 2015.

TCS: A US court has ruled that Tata Consultancy Services is liable for misappropriation of trade secrets and levied penal charges of around $194 million on the IT major.

Adani Enterprises: Adani Group’s promoter entities, including billionaire Gautam Adani raised their stake in the flagship entity Adani Enterprises by just over 2%.

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Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious abo…Read More

Science & Environment

Zomato May Buy Paytms Movie Ticketing Business: Reports

16 June 2024
by admin

New Delhi: Online food delivery platform Zomato is in advanced discussions to buy Paytm’s movie ticketing and events business, according to multiple reports. This move aligns with Zomato’s plan to expand its ‘going out’ offerings. The potential deal could value Paytm’s vertical at around Rs 1,500 crore, as per reports. Zomato or Paytm were yet to comment on the reports.

If finalised, this acquisition would be Zomato’s second-largest purchase, following its acquisition of quick commerce platform Blinkit in 2021, which was an all-stock deal worth Rs 4,447 crore. Meanwhile, Zomato has invested Rs 300 crore in its quick commerce arm, Blinkit, as this segment is projected to surpass its core food delivery business.

The board of the company has approved the investment of Rs 300 crore in Blinkit Commerce, as per filings with the Registrar of Companies accessed via TheKredible. Additionally, Zomato will also invest Rs 100 crore in Zomato Entertainment, its events arm, which specialises in curating and selling tickets for concerts, parties, and festivals.

Science & Environment

Zomato In Final Talks To Buy Paytm’s Movie Ticketing,…

16 June 2024
by admin

This move is in line with Zomato’s strategy of expanding into new areas like entertainment, on top of their existing food and grocery delivery services.

If Zomato acquires Paytm’s events and ticketing business, it would be its second-biggest purchase ever, after buying Blinkit (formerly Grofers) in 2022 for Rs 4,447 crore

Food delivery giant Zomato is in an advanced stage of discussion to acquire Paytm’s movie ticketing and events business, according to a report by The Economic Times citing sources familiar with the matter. The potential deal, which could value Paytm’s vertical at about Rs 1,500 crore, is part of the company’s strategy to double down on its “going out” business.

If Zomato acquires Paytm’s events and ticketing business, it would be its second-biggest purchase ever, after buying Blinkit (formerly Grofers) in 2022 for Rs 4,447 crore, according to the ET report. This move is in line with Zomato’s strategy of expanding into new areas like entertainment, on top of their existing food and grocery delivery services.

“Paytm Movies and Paytm Insider are being merged to bring in synergies between the two teams. The idea is to build this as a single unit… Zomato’s interest in this segment has been there for a while so it fits in very well,” the report quoted a person in the know of the matter as saying.

Paytm is owned by Vijay Shekhar Sharma’s One97 Communications Ltd.

In 2017, Paytm acquired a majority stake in ticketing platform Insider.in, for events and properties, including NH7 Weekender, EDC and The Grub Fest. This enabled all Paytm customers discover a wide selection of events and book instantly.

Recently, One97 Communications’ Paytm Payments Bank faced prohibitory action from banking regulator RBI.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experi…Read More

Science & Environment

Paytm Q4 losses widen to Rs 550 crore, revenue…

22 May 2024
by admin

MUMBAI: Paytm’s losses widened to Rs 550.5 crore in the March quarter on a consolidated basis from Rs 167.5 crore in the year ago period as the Reserve Bank of India’s (RBI) move to impose restrictions on the firm’s banking entity disrupted operations. Revenue from operations during the quarter declined to Rs 2,267 crore from Rs 2,334.5 crore in the year ago quarter.In its earnings statement on Wednesday, the Noida-based firm said that it continues to expect near-term financial impact to its revenue and profitability and the full impact of the RBI’s action on the business will play out in Q1FY25.
“Due to temporary disruption in our operating metrics, we have taken a conservative view and paused certain payments and loan distribution businesses. With emerging regulatory clarity and the recalibration of these products, we have started or will be starting these products soon. These changes are expected to have an incremental EBITDA impact of Rs 75-100 crore, in Q1FY25 and should start recovering in subsequent quarters” the company said. Paytm has written off Rs 227.1 crore worth of investments in Paytm Payments Bank (PPBL) and accounted for it as impairment losses.
Paytm’s monthly transacting users (MTU) declined to 8 crore in April from 10.4 crore users in January on the back of voluntary user attrition due to RBI’s action on PPBL and pause in new user sign-ups for the TPAP (third party application provider) app. Value of loans disbursed during Q4FY24 declined to Rs 5,776 crore from Rs 12,554 crore in the year ago quarter. In a post-earnings call, the company said that about 12% of its payments GMV (gross merchandise value) was coming from businesses which have been currently discontinued or disrupted (like wallet business). “The business has come off its worst. Excluding these disrupted products, we are now seeing a positive growth trend in payment GMV since the month of April,” said Madhur Deora, group CFO at Paytm.
Founder and CEO Vijay Shekhar Sharma said that governance and compliance will be the key focus areas for Paytm in the next few quarters. The company can be expected to add more independent board members and subject matter experts across subsidiaries and associate entities as well as to the board of the parent entity. “We are committed our core payments business. We will invest in customer acquisition,” Sharma said, adding that the company will look at pruningnon-core assets.
Paytm also hinted at more job cuts (largely non-field roles) as it continues to leverage artificial intelligence (AI) to bring about cost efficiencies and expects to record annualised people cost savings of Rs 400-500 crore. “For the coming year, while we continue to invest in the merchant sales team, as well as risk and compliance functions, we expect reductions in other employee costs…..we are optimising our cost structure, leveraging AI capabilities…this includes creating a leaner organisation structure,” the company said.
On January 31, the RBI issued a directive to PPBL asking it to stop accepting money in any customer account, including wallets and other prepaid instruments due to persistent non-compliance. The restrictions were put in place after March 15. Paytm said that it has transitioned its core payments business from PPBL to other partner banks. “This move de-risks our business model and also opens up new opportunities for long-term monetisation, given our platform’s strength around customer and merchant engagement,” the firm said.
The stock price of Paytm ended at Rs 368.85 apiece on the BSE on Wednesday, up nearly 5%.

Science & Environment

Paytm retail and MF investors say ‘Paytm Karo’; stock…

16 May 2024
by admin

NEW DELHI: One97 Communications, which operates the popular fintech brand Paytm, has been included in the MSCI Emerging Markets Small Cap Index.
According to the fintech company, this inclusion reflected the increasing confidence of both domestic and international investors in Paytm, as seen by the significant stake increases from foreign portfolio investors (FPIs), domestic investors, and leading Mutual Funds like Mirae and Nippon India Mutual Fund.
Paytm is one of 29 stocks included in the MSCI Small Cap Index, likely driving USD 273 million inflows, crucial for benchmarking Indian companies internationally.
The inclusion is part of MSCI’s routine review aligning with evolving market conditions, set for May 31, 2024. MSCI (Morgan Stanley Capital International) is a global leader in equity, fixed-income, and hedge fund indices.
According to Paytm, Indian mutual funds increased their holdings in Paytm during the March quarter of 2023-24. Specifically, Mirae Mutual Funds increased their shareholding to 2.39 crore shares (3.76 per cent), while Nippon Mutual Funds raised their stake to 1.66 per cent from 1.05 per cent over the same period. As a result, domestic institutional investors (DII) witnessed an increase in stake to 6.86 per cent from 6.06 per cent.
According to the shareholding pattern available with the stock exchanges, Paytm said domestic mutual funds raised their stake in Paytm by 1.77 per cent, reaching 6.15 per cent from 4.99 per cent at the end of the December quarter of the fiscal year.
Retail investors’ shareholding also went up from 12.85 per cent to 14.53 per cent sequentially while Non-Resident Indians (NRIs) also saw an increase from 0.67 per cent to 0.85 per cent, it said.
Meanwhile, FPI shareholding in Paytm rose by 2.49 per cent to 20.19 per cent in Q4-2023-24 as new investors including Tiger Pacific Capital, Societe Generale and Norway’s Government Pension Fund Global invested in the stock.
In February this year, Morgan Stanley Asia (Singapore) Pte. – ODI purchased 50 lakh shares of Paytm worth Rs 243.6 crore in a bulk deal, the company said.
Abhilash Pagaria, head, of Nuvama Alternative and Quantitative Research, remains extremely bullish on India, especially with active participation from mutual funds and HNI/retailers in the Indian equity markets. Paytm has 60.4 per cent holdings by FIIs as of the March quarter of 2023-24.
Following NPCI’s approval on March 14, 2024, to onboard OCL as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model, Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank.
All four banks are now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks.
The fintech company is now focusing on UPI Lite wallet to move the users who prefer wallets for low-value everyday payments. Paytm UPI Lite acts as an on-device wallet, allowing users to store funds and make payments on the go. It offers lightning-fast payments that never fail with no pin requirement.