Paytm clarifies licensing process status amid speculations

Cipla to acquire Ivia Beaute's cosmetics, personal care distribution and marketing business

Pharma major Cipla Ltd will acquire the cosmetics and personal care distribution and marketing business of Ivia Beaute Pvt Ltd, including the latter's brands Astaberry, Ikin and Bhimsaini, on a worldwide basis for Rs 130 crore, according to a regulatory filing by the company.

Cipla Health Ltd (CHL), a wholly owned subsidiary and consumer healthcare arm, has signed a Business Transfer Agreement (BTA) for purchase of the distribution and marketing business undertaking of the cosmetics and personal care business of Ivia Beaute Pvt Ltd, Cipla said.

This strategic move is aligned with Cipla's focus on enhancing its consumer healthcare and wellness portfolio, it added.

On the cost of acquisition, Cipla said it will be "Rs 130 crore on the closing date and Rs 110 crore contingent upon achievement of certain financial parameters (milestones) for next 3 years as mentioned in the BTA".

Fintech major Paytm on Tuesday clarified the status of its licensing process amid recent speculations, saying it has not received any communication suggesting a deferral or penalties and any notion to the contrary is "completely unfounded and misleading".

Recent media reports speculated on the deferral of Paytm Payment Services Limited's (PPSL) license application and potential penalties.

A company spokesperson said that the information appears speculative as the government has consistently championed fintech initiatives.

"The ongoing application process has seen us promptly provide the requested information, with no indication of rejection or penalties involved. Aligning with the government's vision, supporting Paytm as a homegrown entity is pivotal for empowering Indian companies to compete globally and drive technological advancements," the company spokesperson said in a statement.

PPSL is a wholly-owned subsidiary of One 97 Communications Ltd (OCL) and it applied for an online Payment Aggregator (PA) license for online merchants.

The formation of PPSL, transfer of online payments business from OCL to PPSL and investment of capital in PPSL was required by RBI's guidelines, which mandated that the PA business should be housed in an independent legal entity.

Without such a requirement, the online payments business would have continued in OCL itself, according to the company.