NEW DELHI, Nov 29 (Reuters) - Shares in India's One 97
Communications Ltd, the parent of Paytm, fell as much
as 4.6% on Monday after the fintech company's net loss for its
second quarter widened due to a rise in expenses.
In its first earnings report since going public earlier this
month, the company said expenses jumped 37.1% to 15.99 billion
rupees and consolidated net loss increased to 4.74 billion
rupees ($63.31 million) from 4.37 billion rupees a year ago.
Its revenue from operations, however, surged 63.6% to 10.86
billion rupees for the quarter ended September.
"Some of the line items in our payment business are not just
profit generating but free cash flow generating," founder and
chief executive Vijay Shekhar Sharma said in an earnings call
for investors on Saturday.
Paytm, which counts China's Ant Group and Japan's SoftBank
Group among its backers, raised $2.5 billion this month
in India's biggest initial public offering, but made a dismal
debut on the stock exchanges.
While the stock has recouped some of the losses suffered
during the debut, it still remained nearly 21% below its IPO
offer price of 2,150 rupees.
"I'm looking to sell the shares as soon as the price goes
up," said Bansidhar Bhatia from east Indian city of Kolkata, who
bought Paytm shares at the issue price.
"I don't see long-term value in the stock and its price is
very high compared to the company's business model."
As of 0430 GMT, Paytm shares were trading down 0.3% at 1,776
($1 = 74.8660 Indian rupees)
(Reporting by Sankalp Phartiyal and Rama Venkat; Editing by