No discussions with the Adani Group concerning a potential stake sale: PayTM

Reports stated that Gautam Adani was in talks with Paytm CEO Vijay Shekhar

Paytm's shares rose by 5%

One97 Communications Limited, the parent company of Paytm, has dismissed reports of any discussions with the Adani Group concerning a potential stake sale. This denial follows a recent article claiming that billionaire Gautam Adani was in talks with Paytm CEO Vijay Shekhar Sharma to purchase a stake in the digital payments company.

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“Regarding the aforementioned subject, we clarify that the reported news item is speculative, and the Company is not engaged in any discussions in this regard,” Paytm stated in a filing to the stock exchange. The Adani Group echoed this sentiment, declaring, “It is totally false and untrue.”

The media report suggested that Sharma had visited Adani, chairman of the ports-to-power conglomerate Adani Group, on Tuesday to “finalize the contours of a deal.” It also indicated ongoing negotiations between Adani and Sharma, as well as discussions with West Asian funds to potentially invest in Paytm.

Despite the official denials, Paytm’s shares rose by 5%, reflecting investor interest driven by speculation, while Adani Enterprises, the flagship company of the Adani Group, saw a 0.4% decline in its share price.

As of the end of March, Vijay Shekhar Sharma holds a 9.1% stake in Paytm personally and an additional 10.3% through Resilient Asset Management, a foreign entity, according to exchange data.

The fluctuations in stock prices underscore the influence of speculative news, even in the face of clear denials from the companies involved.