One97 Communications, the parent company of Paytm, has responded to a media report suggesting that Adani Group chairman, Gautam Adani, might be interested in buying a stake in the company.
In an official statement, Paytm clarified, “The news is speculative, and the company is not in any discussions regarding this. We always comply with our disclosure obligations under SEBI regulations.”
Report Details
According to the Times of India (ToI), Paytm’s founder and CEO Vijay Shekhar Sharma recently visited Adani in Ahmedabad to discuss a potential deal. If this deal goes through, it would mark Adani’s entry into the fintech industry, putting them in competition with Google Pay, Walmart-owned PhonePe, and Mukesh Ambani’s Jio Financial.
ToI also reported that Adani is looking to attract investment from West Asian funds into One97 Communications, the company that introduced mobile payments in India.
Key Shareholders
Vijay Shekhar Sharma owns about 19% of One97 Communications, valued at Rs 4,218 crore based on a stock price of Rs 342 per share. He directly owns 9% of Paytm and an additional 10% through Resilient Asset Management, a foreign entity. Both Sharma and Resilient are classified as public shareholders in stock exchange filings.
Other major shareholders include Saif Partners (15%), Antfin Netherlands (10%), and the company’s directors (9%).
Background on One97 Communications
Founded by Sharma in 2007, One97’s IPO was the second largest in India. The company currently has a market capitalization of over Rs 21,000 crore.
Adani’s Potential Moves in Fintech and E-commerce
Adani Group’s interest in Paytm comes amid expectations that the conglomerate may apply for a license to operate on UPI, India’s digital payments network. Additionally, Adani’s company is in discussions with banks to launch a co-branded credit card and might provide online shopping services through the Open Network for Digital Commerce (ONDC), India’s government-supported public e-commerce platform, according to the Financial Times.
This speculation has created a buzz, but for now, Paytm maintains that there are no ongoing discussions with Adani Group.
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