Digital payments company Paytm’s Founder Vijay Shekhar has said that it is not in discussions to sell a stake, refuting an earlier media report.
Gautam Adani, chairman of the Adani Group, is reportedly negotiating with Paytm founder Vijay Shekhar Sharma for a stake purchase, according to sources familiar with the matter as reported by The Times Of India.
“We hereby clarify that the abovementioned news item is speculative and the company is not engaged in any discussions in this regard,” said the company in an official statement. “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.”
In an article published yesterday on Page 8 titled “Adani Group chief Gautam Adani interested in buying a stake in Paytm parent?” TOI reports that Gautam Adani, Chairman of Adani Group wants to buy a stake in One 97 Communications which runs mobile wallet firm Paytm but this information has been refuted by Paytm.
What TOI Report Indicates
According to TOI’s report, Vijay Shekhar Sharma Paytm Founder and CEO met with Gautam Adani Chief at his group’s Ahmedabad-based office on May 28 “to finalize details of a deal”.
Paytm responded to these allegations as follows “We hereby clarify that the abovementioned news item is speculative and the company is not engaged in any discussions in this regard.”
Another thing is that, if this deal succeeds between the two entrepreneurs and Adani enters fintech, it will face off competition from companies like Google Pay, Jio Financial by Mukesh Ambani, and Walmart’s PhonePe.
RBI Action On Paytm Payments Bank
Paytm Payments Bank (PPBL) was restricted from doing business on January 31 by the RBI. Such restrictions were a result of repeated violations of norms and non-compliance with multiple regulations. From February 29 onwards, PPBL was temporarily prevented from taking new deposits or engaging in credits.
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PPBL also had to stop signing up new customers as of March 2024. The bank took this move after an audit report exposed “persistent non-compliance and ongoing material supervisory concerns” at it.
Following this action by RBI, more than 50% of Paytm shares have been lost which has greatly eroded investors’ wealth.
On Wednesday at 09:18 AM, One97 Communications saw its shares hit the upper circuit of 5% at Rs 359.55 on the BSE landing on speculation that Adani Group might be eyeing a stake in Paytm for instance.
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