Not engaged in any discussions: Paytm issues clarification on report claiming Adani in talks to acquire stake in company
“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,” communicated the company in an official statement.
Read More: Adani’s fintech play: Gautam Adani likely in talks with Vijay Shekhar Sharma to acquire stake in Paytm’s parent co
Is Adani looking to acquire stake in Paytm?
As per the ToI report, Paytm founder and CEO Vijay Shekhar Sharma visited Adani at his office in Ahmedabad to “finalise the contours of a deal” on Tuesday.
If the said deal is successfully completed, it will signify the ports-to-airports conglomerate’s entry into the fintech industry, and it will position it against competitors like Google Pay, Walmart-owned PhonePe, and Mukesh Ambani’s Jio Financial.
Adani is engaging with West Asian funds to attract them as investors in One 97, the company that pioneered mobile payments in India, reported ToI quoting its sources further.Read More: Adani Group wants a slice of India’s payments and e-commerce pie: ReportVijay Shekhar Sharma holds approximately 19 percent of One 97 Communications, with his stake valued at Rs 4,218 crore based on the stock’s closing price of Rs 342 per share on Tuesday. He directly owns 9 percent of Paytm and another 10 percent through Resilient Asset Management, a foreign entity. According to One 97’s stock exchange filings, both Sharma and Resilient are classified as public shareholders.
Other major shareholders of One 97 include the private equity fund Saif Partners, holding 15%, Antfin Netherlands, founded by Jack Ma, with a 10% stake, and the company’s directors, who collectively own 9%.
Founded by Sharma in 2007, One 97’s IPO was the second largest in the country, and the company currently has a market capitalization of over Rs 21,000 crore.
Adani’s entry in payments and e-commerce area:
The possibilty of ports-to-power conglomerate Adani Group in talks with Paytm parent company comes after it was expected that the billionaire is likely to apply for a licence to operate on UPI, India’s public digital payments network. In addition, the billionaire Gautam Adani’s company is also in talks with banks to finalise plans to launch a co-branded credit card.
Adani is speculated to have discussing the possibility of providing online shopping services through the Open Network for Digital Commerce (ONDC), India’s government-supported public e-commerce platform, business daily Financial Times reported citing sources familiar with the situation.
(with ToI and agency inputs)
