Paytm shares drop 5%; fintech’s Q2 losses widen
Paytm parent One97 Communications’ shares dropped as much as 5 percent on Monday, as the fintech firm’s Q2 FY22 results failed to enthuse the Street.
The stock extended losses from Friday. On Friday, the scrip had tanked over 7 percent after rising for three trading sessions back to back. Sell-off in the broader market had weighed on Paytm’s shares.
The digital payments firm saw losses in Q2 increase to Rs 473 crore, up 24 percent sequentially and 8.5 percent annually, as expenses increased. The company also saw a small dip in contribution margin to 23.9 percent, down from 27.4 percent in the June quarter. The contribution profit stood at Rs 260 crore, compared to Rs 244 crore in the earlier quarter.
However, Paytm’s revenue from operations for the second quarter of the fiscal jumped 63.6 percent to Rs 1,086.4 crore on a year-on-year (Y-o-Y) basis. It is 22 percent higher than the revenue of Rs 890.8 crore in the previous quarter.
Oyo dismisses allegations by FHRAI to Sebi over IPO
Hospitality startup Oyo on Monday has dismissed allegations made by the Federation of Hotel & Restaurant Associations of India (FHRAI) to Sebi, in which the association had called for the suspension of the company’s proposed IPO citing alleged anti-competitive practices, fraud, and inadequate disclosures in DRHP.
Meanwhile, FHRAI has also filed a fresh civil appeal against the NCLAT’s July order in which it had closed an insolvency case against an Oyo subsidiary. FHRAI had approached Sebiin October asking the regulator to reject Oyo’s DRHP and suspend the proposed IPO.
In a response to FHRAI’s letter to Sebi, which Oyo sent to both FHRAI and Sebi, the company said that it is not involved in anti-competitive agreements as alleged. The company also said that is not in a dominant position and hence cannot abuse its position, citing a 2019 CCI order.
On allegations that Oyo has avoided contractual obligations with hotel partners by invoking force majeure, the company said that it was “constrained” to invoke force majeure provisions due to pandemic and that no fraud was committed.
FHRAI had also alleged that the company had not made adequate disclosures of outstanding litigations against them in the DRHP and that it would impact retail investors.
Oyo, however, has said all outstanding litigation against the company has been disclosed in the DRHP. Oyo had filed its DRHP with Sebi on October 1 for raising Rs 8,430 crore through an IPO. It is still to receive the regulator’s approval.
Cryptocurrency unicorn CoinDCX plans to go public: Report
India’s first cryptocurrency unicorn CoinDCX plans to go public as soon as Indian regulations allow it, Bloomberg News reported. Co-founder Neeraj Khandelwal said that CoinDCX IPO would boost confidence in India’s ‘digital asset industry’.
“As soon as the government or the situation allows us, we will try for an IPO. An IPO gives legitimacy to the industry, just like the Coinbase IPO gave a lot of confidence in the crypto markets. Similarly, we want to instil a similar level of confidence with an IPO of CoinDCX,” Khandelwal said, as quoted by Bloomberg.
The cryptocurrency exchange was valued at $1.1 billion in August when it raised $90 million in a funding round led by Facebook co-founder Eduardo Saverin’s fund B Capital. Its existing investors such as Coinbase Ventures, Polychain Capital, Block.one, Jump Capital and others also invested.
Khandelwal said that the company would decide on the IPO timeline depending on government regulations.
“The bill coming up at this juncture signals progress and acknowledgement from the government side of the growing investor base for crypto,” Khandelwal added, as per the report. The government plans to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in the ongoing Winter Session of Parliament. The Bill seeks to ban all but a few private cryptocurrencies to promote underlying technologies while allowing an official digital currency by RBI.
(Edited by : Jomy Jos Pullokaran)
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