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Is Paytm in talks with Adani Group to sell stake? Company issues clarification

Paytm has dismissed a report that claimed billionaire Gautam Adani was negotiating with CEO Vijay Shekhar Sharma to acquire a stake in the digital payments firm.

Edited By: Arushi Jaiswal @JaiswalArushi New Delhi Updated on: May 29, 2024 12:28 IST
Paytm, Adani Group
Image Source : FILE PHOTO Representative image

New Delhi: One97 Communications Limited, the parent company of Paytm, has denied being in discussions with the Adani Group about a potential stake sale, terming the report "speculative". This clarification comes in response to a report suggesting that billionaire Gautam Adani was in talks with Paytm founder Vijay Shankar Sharma to buy a stake in the digital payments company.

In a clarification issued on the bourses, Paytm said, "We hereby clarify that the abovementioned news item is speculative and the Company is not engaged in any discussions in this regard. We have always made and will continue to make disclosures in compliance with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015."

Adani group has also termed such reports as "false and untrue." Separately, an Adani group spokesperson said, "we categorically deny this baseless speculation. It is totally false and untrue."

Notably, Sharma owns 9.1 per cent of Paytm in his personal capacity and another 10.3 per cent through Resilient Asset Management, a foreign entity, as of end-March.

News report claims Gautam Adani looking to buy stake in One97 Communications 

In the early hours of Wednesday, a newspaper report, citing unnamed sources, claimed that Adani Group chairman Gautam Adani was looking to acquire a stake in One97 Communications, the parent company of Paytm. The report suggested that Paytm founder and CEO Vijay Shekhar Sharma met with Gautam Adani at his office in Ahmedabad on Tuesday to "finalise the contours of a deal."

According to the report, Sharma holds approximately 19 per cent of One97 Communications, which is valued at Rs 4,218 crore based on the stock's closing price of Rs 342 per share on Tuesday.

RBI action on Paytm Payments Bank

In a major action against Paytm Payments Bank (PPBL), RBI, on January 31, directed it to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29. The deadline was later extended to March 15. The direction follows persistent non-compliance and continued material supervisory concerns.

Since March 15, Paytm has operated as a third-party application provider (TPAP) rather than its previous role solely as a payments bank app. In this new capacity, Paytm has enlisted Axis Bank, Yes Bank, SBI, and HDFC Bank as its partners in the TPAP, serving as payment service provider (PSP) banks.

The company during the reported quarter wrote off Rs 227 crore investment for a 39 per cent stake in PPBL, following future uncertainties associated with the bank's business operations including the uncertainty of any other regulatory development etc.

(With agencies inputs)

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