May 29th 2024.
In a recent statement, One97 Communications Ltd, the operator of Paytm, denied any talks of selling a stake to the Adani Group. The Adani Group also dismissed these reports as false and baseless.
There had been speculation that billionaire Gautam Adani was in discussions with Paytm CEO Vijay Shekhar Sharma for a potential stake purchase. However, One97 Communications clarified that this news was purely speculative and that the company was not engaged in any such discussions.
In a separate statement, an Adani Group spokesperson also refuted these rumors, calling them completely untrue and without merit. It was reported that Sharma, who currently owns 9.1% of Paytm personally and another 10.3% through a foreign entity, had met with Adani at his office in Ahmedabad.
Paytm has faced some setbacks recently, including the closure of its banking unit due to regulatory issues, resulting in a 50% decrease in its market value. This has led to speculation about potential takeover bids for the company.
Earlier this year, there were reports of talks between Paytm and Mukesh Ambani's Jio Financial Services, but both parties denied any such discussions. In response to the recent rumors, Paytm clarified in a regulatory filing that they were not engaged in any discussions regarding a stake sale.
According to a newspaper report, Adani Group chairman Gautam Adani had expressed interest in buying a stake in One97 Communications and had met with Sharma in Ahmedabad. However, these talks have been dismissed by both parties.
In its recent financial report, Paytm reported a loss of Rs 550 crore in the fourth quarter of the financial year 2023-24. This was due to the Reserve Bank of India's ban on transactions related to its payments bank. The RBI had prohibited Paytm Payments Bank Limited from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, or FASTags from March 15 onwards.
During this quarter, Paytm also wrote off a Rs 227 crore investment for a 39% stake in PPBL, citing uncertainties in the bank's operations and potential regulatory developments. Overall, the company has faced some challenges but remains committed to serving its customers and merchants.
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