In contradistinction to the notion circulating, Paytm operator One97 Communications Ltd affirmed today that there exists no negotiation underway regarding a stake acquisition by the Adani Group. Dismissed as “deceptive and unfounded” by the Adani group, such assertions were vehemently refuted.

In response to a circulated report suggesting a dialogue between billionaire Gautam Adani and Paytm CEO Vijay Shekhar Sharma concerning a plausible stake acquisition, One97 Communications remarked that the disseminated information remains conjectural, devoid of factual basis, and that no such deliberations are ongoing.

Equally, a spokesperson for the Adani group rebuffed the allegations, unequivocally labeling them as groundless speculations, reiterating the absence of any truth therein. Sharma, in his personal capacity, holds a 9.1 percent stake in Paytm, alongside an additional 10.3 percent through Resilient Asset Management, a foreign entity, as per data from the end of March.

Following regulatory setbacks leading to the cessation of its banking operations, Paytm has witnessed a precipitous decline in market valuation, prompting persistent conjecture regarding its vulnerability to acquisition. Earlier reports in February suggested discussions with billionaire Mukesh Ambani’s Jio Financial Services, which were similarly refuted by both parties.

In explicit rebuttal, Paytm clarified through a regulatory disclosure that the previously mentioned reports are speculative in nature, emphasizing the absence of any substantive discussions. An article in a leading daily alleged Adani Group chairman Gautam Adani’s purported interest in acquiring a stake in One97 Communications, citing a meeting between Sharma and Adani in Ahmedabad.

Recently, Paytm disclosed a widening loss in the fourth quarter of the financial year 2023-24 amounting to Rs 550 crore, attributed to the RBI’s embargo on transactions involving its payments bank.

The RBI directive imposed restrictions on Paytm Payments Bank Limited (PPBL) from undertaking deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags effective March 15, in the interest of safeguarding customers, including merchants.

During the reporting period, the company incurred a write-off of Rs 227 crore invested for a 39 percent stake in PPBL, citing future uncertainties surrounding the bank’s operations, including regulatory developments. Sharma retains a 51 percent stake in PPBL.