PB Fintech’s lending division, Paisabazaar, has been issued an order by the Adjudicating Authority under the Prohibition of Benami Property Transactions Act.
This order, received on March 26, pertains to Section 26(3) of the Act, which addresses the adjudication phase regarding alleged benami properties.
The order alleges that Paisabazaar is the beneficial owner concerning certain transactions with its vendors. The company plans to contest this order in the near future.
When approached for further details, PB Fintech opted not to comment.
Paisabazaar operates as a digital marketplace for consumer credit, offering various loans, credit cards, and investment products such as mutual funds and fixed deposits. The platform collaborates with Hero FinCorp and Piramal Finance to facilitate loans under the FLDG model.
As of the end of December, Paisabazaar reported 7.1 million transacting customers and total disbursements of ₹9,986 crore for the quarter, marking an impressive 84% year-over-year growth.
In February, Paisabazaar established a new wholly-owned subsidiary, Paisa Financial Services, with an investment of ₹3 crore to enhance its collection processes.
Despite strong quarterly performance, with a 165% year-over-year increase in net profit to ₹189.4 crore and a 37% rise in revenue to ₹1,771.1 crore, PB Fintech's stock has seen significant volatility. Year-to-date, shares have dropped nearly 20%, recently hitting a new 52-week low.
The decline in stock prices was exacerbated by the company’s announcement of plans for a qualified institutional placement (QIP) in February, which led to a sell-off. This plan was later retracted amid shareholder backlash.
Additionally, Tencent Cloud Europe BV, a major investor, recently sold 48.4 lakh shares worth ₹695 crore, reducing its stake from 2.12% to 1.06%. Institutional investors like Goldman Sachs and Tata Mutual Fund participated in this transaction.
At the close of trading, PB Fintech shares fell by 0.59% to ₹1,459.60 on the BSE.
