A newspaper reported that Gautam Adani is looking to buy a stake in One97 Communications and Sharma met him at his office in Ahmedabad.
A newspaper reported that Gautam Adani is looking to buy a stake in One97 Communications and Sharma met him at his office in Ahmedabad.Photo | ANI

Paytm, Adani Group deny talks over stake sale in fintech firm

Since shutting down its banking unit after falling foul to regulations, Paytm lost about half of its market value and there has been consistent speculation about it being a potential takeover target.

NEW DELHI: Paytm on Wednesday refuted reports stating that Adani Group chairman Gautam Adani is considering acquiring a stake in parent company One 97 Communications.

“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,” Paytm said in a regulatory filing.

Separately, an Adani group spokesperson said that they categorically deny this baseless speculation and added that “It is totally false and untrue.”

Earlier, a media report stated that Asia’s second richest billionaire Gautam Adani is considering buying a stake in the embattled fintech company. The report noted that Paytm founder and CEO Vijay Shekhar Sharma had visited Adani at his office in Ahmedabad to finalise the contours of a deal.

The report comes months after the Reserve Bank of India dealt a big blow to Paytm as it barred Paytm Payments Bank Ltd (PPBL) from onboarding new users and from offering various services owing to severe non-compliance.

Owning to the disruption caused by this, Paytm reported a net loss of Rs 550 crore for the quarter ended March of the financial year 2024 (Q4FY24) compared to Rs 167.5 crore loss reported in the year-ago quarter.

“Our Q4 FY 2024 results were impacted by temporary disruption on account of UPI transition etc. and permanent disruption because of PPBL embargo,” Paytm said in its earnings release. The company flagged that while it experienced some financial setbacks in Q4 due to these disruptions, the full impact will be more evident in the first quarter of FY25.

Paytm shares have crashed about 50% since the RBI’s diktak came out in late January and the company’s valuation has come down to less than Rs 23,000 crore. Sharma owned nearly 19% stake in One 97 Communications and his stake was last valued at about Rs 4,200 crore.

The New Indian Express