Gautam Adani discusses Paytm stake purchase with Vijay Shekhar Sharma
Gautam Adani, chairman of the Adani Group, is in talks with Vijay Shekhar Sharma, founder and CEO of Paytm, to acquire a stake in One 97 Communications, the parent company of Paytm. The Times of India reports that Sharma met with Adani at the latter's Ahmedabad headquarters on Tuesday to "finalize the contours of a deal." However, Paytm has denied these developments, saying the "news item is speculative and the company is not engaged in any discussions in this regard."
Potential entry of Adani Group into fintech sector
If the deal materializes, it would signify the Adani Group's entry into the fintech sector. The conglomerate is planning to penetrate the e-commerce and digital payments sectors by offering UPI and credit card services, along with online shopping via the Open Network for Digital Commerce (ONDC). This move would pit them against established companies such as Google Pay, Walmart-owned PhonePe, and Mukesh Ambani's Jio Financial. The acquisition could also be one of Adani's significant purchases following Ambuja Cements and NDTV.
Sharma's stake in One 97 Communications
Sharma holds approximately 19% of One 97 Communications, valued at ₹4,218 crore based on the closing price of ₹342 per share on May 28. He directly owns 9% of Paytm and indirectly owns another 10% through Resilient Asset Management, an overseas company. According to One 97's filings with stock markets, both Sharma and Resilient are identified as public shareholders.
Paytm's current challenges and future prospects
Paytm is currently facing a challenging time. The (RBI) imposed business restrictions on Paytm Payments Bank on January 31 due to repeated violations of norms and non-compliance with multiple rules. Following these restrictions, shares of Paytm have eroded more than 50% of investors' wealth. Key lending partners such as Aditya Birla Finance have invoked loan guarantees due to repayment defaults from customers, while Piramal Finance and Clix Capital have ended their partnerships with Paytm after RBI's crackdown.
