The investment, which secured a 26.72% stake in YKNP, raised concerns under Clause 4(1) of Schedule B and Regulation 9A(2)(b) of SEBI (Prohibition of Insider Trading) Regulations, 2015. Despite this, PB Fintech clarified in an exchange filing that it did not consider the investment as unpublished price sensitive information (UPSI) due to its “non-material value.”
“It is clarified that on account of the SCN, there is no material impact on financials, operations or other activities of the company. Further, the company is seeking legal advice to take appropriate steps with respect to the SCN in the due course of time,” the filing stated.
YKNP, a provider of lead generation, sales consulting, co-sourcing, and sales outsourcing services, became an associate of PB Fintech FZ-LLC following the investment. PB Fintech emphasized that the partnership aimed to gain access to UAE banks and leverage a sales team capable of catering to Arabic customers.
This regulatory development comes as PB Fintech is expanding its presence in the UAE market. Last month, the company acquired a 100% stake in UAE-based Genesis Group, owned by Dahiya through YD Holdings, via its wholly-owned subsidiary Icall Support Services.
PB Fintech, which also operates Paisabazaar, reported a consolidated net profit of INR 60.2 crore in Q4 FY24, continuing its profitable streak from the previous quarter. The company’s operating revenue surged by 25% both quarter-on-quarter and year-on-year to INR 1,089.6 crore in Q4.
Additionally, last month, Dahiya sold 5.4 million shares of PB Fintech for INR 715 crore through open market transactions. Despite these activities, shares of PB Fintech closed 0.42% lower at INR 1,288.55 on the BSE today.
The company remains committed to addressing the SCN appropriately, while it continues to focus on its growth and expansion strategies in the UAE and other markets.
