Adani Group Likely In Talks With Vijay Shekhar Sharma To Buy Stake In PayTM: Report

Media reports reveal that Adani Group Chairman Gautam Adani is interested in acquiring a stake in One 97 Communications, the company behind the Paytm mobile wallet. However, Paytm has denied any such development.

Paytm founder and CEO Vijay Shekhar Sharma met with Adani on May 28 at the Adani Group’s Ahmedabad headquarters to discuss the details of a potential deal, media reports claimed.

Sharma holds approximately 19 per cent of One 97 Communications, valued at Rs 4,218 crore based on the closing price of Rs 342 per share on May 28. His direct ownership stands at 9 per cent, with an additional 10 per cent held indirectly through Resilient Asset Management. Both Sharma and Resilient are classified as public shareholders according to One 97’s stock market filings.

If confirmed, this acquisition would be a significant addition to Adani’s portfolio, following high-profile purchases like Ambuja Cements and NDTV. The entry of Adani into the fintech sector would pit him against established players like Google Pay, Walmart-owned PhonePe, and Mukesh Ambani’s Jio Financial.

Additionally, Paytm has faced significant regulatory and financial challenges recently. On January 31, the RBI imposed business restrictions on Paytm Payments Bank (PPBL) due to repeated violations and non-compliance with regulations, barring it from accepting new deposits and performing credit transactions after February 29. In March 2024, PPBL was prohibited from onboarding new clients, following an audit that highlighted "persistent non-compliance and ongoing material supervisory concerns." These actions have led to a more than 50 per cent decline in Paytm's share value.

Compounding these issues, key lending partners such as Aditya Birla Finance, Piramal Finance, and Clix Capital have withdrawn their partnerships following the RBI’s restrictions.