Adani in Talk with Vijay Shekhar Sharma to Acquire Stake in Paytm Parent

Adani Group chairman Gautam Adani is looking to acquire a stake in Paytm's parent company, One97 Communication, according to sources cited by The Times of India. 

According to the report, Paytm CEO Vijay Shekhar Sharma visited Adani's office in Ahmedabad on Tuesday, May 28, 2024, to finalise the deal's contours. 

According to the sources, Vijay Shekhar Sharma has no plans to sell his stake in One97 Communication. 

However, the news has not been confirmed yet by the officials of Paytm and Adani Group. Currently, Paytm has denied making any comments on the acquisition deal in the exchange filing. 

Adani to Compete With Google Pay & PhonePay 

If the acquisition deal is successfully negotiated, it will signify ports to airports conglomerate's entry into fintech industry. It will help Adani to compete with Google Pay, Phone Pay and Jio Financial. 

Adani and Sharma both have been in talks for an extended period, with their recent meetings in Adani's corporate house in Ahmedabad on Tuesday. According to the ET, Adani is engaging with west asian funds to attract them as investors in One97, the company has pioneered mobile payments in India.  

Paytm founder's Stake Holdings 

Paytm founder Vijay Shekhar Sharma holds 19% stake in One97 Communication valued at Rs 4,218 crore based on the paytm closing on price on Tuesday. Sharma directly holds 9% on Paytm and indirectly holds another 10% through Resilient Asset Management. 

Other major stakeholders of One97 Communication include private entity fund Saif Partners, which holds 15%, Antfin Netherlands, which has a 10% stake, and company directors, who collectively own 9%. Currently, the company's market capitalization is over 21,000 crore. 

Paytm's share price is currently trading at Rs 359.45%, up 4.99% from its listing. On a year-to-date basis, the company's stock is down 44% and 76%.