Paytm Denies Having Discussions With Adani On Potential Stake Acquisition

The parent company of Paytm, One97 Communications Limited, denied being in any discussions with the Adani Group after reports of billionaire Gautam Adani negotiating with Paytm CEO Vijay Shekhar Sharma to acquire a stake in the firm emerged.

Releasing a clarification, the digital payment firm denied the Times of India report, calling it “speculative.”

“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,” Paytm stated in a stock exchange filing.

A recent report claimed that the Paytm CEO had met Adani in the billionaire’s Ahmedabad office to finalise the deal. It indicated that the discussions between the two first-generation entrepreneurs had been going on for sometime and that Adani was seeking to bring in West Asian funds as investors in Paytm.

The Adani Group has also refuted the speculations, according to India Today.

The speculations came a day after reports of the Indian multinational conglomerate venturing into the e-commerce and payments sectors as it develops a digital company to compete with rivals Google and Mukesh Ambani’s Reliance Industries emerged. The Adani Group’s expansion plans involve seeking a Unified Payments Interface (UPI) license and negotiating a co-branded Adani credit card with banks.

Meanwhile, Paytm shares jumped to 5 percent, while the flagship company of the Adani Group, Adani Enterprises, witnessed a dip of 0.4 percent on the Bombay Stock Exchange (BSE).

Vijay Shekhar Sharma currently holds nearly 19 percent of One97 Communications, 9 percent of Paytm (directly owned), and another 10 percent through the foreign entity Resilient Asset Management.