Digital payments firm Paytm announced on Wednesday that it is not in discussions to sell a stake to Adani group, refuting an earlier media report.
Adani group has also termed such reports as “false and untrue.”
“We categorically deny this baseless speculation. It is totally false and untrue,” an Adani group spokesperson said.
Gautam Adani, chairman of the Adani group, is discussing with Paytm founder Vijay Shekhar Sharma to acquire a stake, according to a report by the Times of India, which cited sources familiar with the matter.
“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,” said the company in an official statement.
What did the report indicate?
According to the TOI report, Adani group, Chairman, Gautam Adani is interested in acquiring a stake in One 97 Communications, the company behind the mobile wallet Paytm. However, Paytm has denied any such development.
According to the TOI report, Paytm founder and CEO Vijay Shekhar Sharma met with Adani group chief Gautam Adani on May 28 at the group’s Ahmedabad headquarters to “finalise the details of a deal.”
“We hereby clarify that the abovementioned news item is speculative and the company is not engaged in any discussions in this regard,” Paytm said in reaction to the report.
If the deal between the two first-generation entrepreneurs succeeds and Adani enters the fintech market, it will compete with companies like Google Pay, Walmart-owned PhonePe, and Mukesh Ambani’s Jio Financial.
RBI Action On Paytm Payments Bank
On January 31, the RBI imposed business restrictions on Paytm Payments Bank (PPBL) due to repeated violations of norms and non-compliance with multiple regulations. The banking regulator prohibited PPBL from accepting new deposits and conducting credit transactions starting February 29.
In March 2024, PPBL was prohibited from onboarding new clients. This decision followed an audit report highlighting “persistent non-compliances and ongoing material supervisory concerns” at the bank. Since the RBI’s action, Paytm’s shares have lost more than 50 percent of their value, significantly impacting investors’ wealth.
Meanwhile, fueled by speculation that the Adani group might be eyeing a stake in Paytm, One97 Communications saw its shares hit the upper circuit of 5 percent at Rs 359.55 on the BSE at 09:18 AM on Wednesday.
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