Adani in talks with Vijay Shekhar Sharma to acquire stake in Paytm


MUMBAI: Adani Group chairman Gautam Adani is wanting to purchase a stake in One 97 Communications, which operates Paytm, mentioned sources acquainted with the matter.
Paytm founder & CEO Vijay Shekhar Sharma met Adani on the latter’s workplace in Ahmedabad on Tuesday to “finalise the contours of a deal”, the sources added.
If a transaction works out between the 2 first-generation entrepreneurs, it would mark the ports-to-airports group’s foray into the fintech sector, competing in opposition to Google Pay, Walmart-owned PhonePe and Mukesh Ambani’s Jio Financial.It will even be certainly one of Adani’s vital purchases after Ambuja Cements and NDTV.

Sharma owns about 19 per cent in One 97, which is value Rs 4,218 crore based mostly on the inventory’s Tuesday closing value of Rs 342 apiece. Sharma owns 9 per cent in Paytm immediately, and holds one other 10 per cent by a international entity Resilient Asset Management. Both Sharma and Resilient, in accordance to One 97’s filings with inventory exchanges, are listed as public shareholders.
Sebi guidelines require an acquirer, holding lower than 25 per cent in a goal firm, to make an open supply for a minimal 26 per cent stake of the corporate. The acquirer can even make an open supply for the whole share capital of the corporate.
Sources mentioned that discussions between Adani and Sharma have been happening for some time and their assembly at Adani Corporate House in Ahmedabad on Tuesday concerned “finalising the contours of the deal”. They added that Adani can also be in talks with funds from West Asia to convey them as buyers in One 97, which pioneered cellular funds in the nation.
Other vital shareholders of One 97 are personal fairness fund Saif Partners (15%), Jack Ma-founded Antfin Netherlands (10%) and the corporate’s administrators (9%). Emails despatched to Adani Group and One 97 on Tuesday did not elicit a response until the time of going to press. One 97, based by Sharma in 2007, and whose IPO was the second largest in the nation, has a market cap of Rs 21,773 crore.
“With the financial strain and regulatory bottlenecks that Paytm is facing, aligning with Adani Group would provide the robust financial backing needed to address regulatory compliance issues and stabilise its operations. For Adani, integrating Paytm’s established digital payments platform into their diverse business portfolio would enhance their digital footprint and accelerate their ambition to become a leading player in the fintech space,” mentioned Katalyst Advisors’ government director Binoy Parikh.
“It would also provide Adani with immediate access to Paytm’s extensive user base and technology infrastructure, enabling the group to offer a seamless digital payments experience across its various consumer-facing businesses, including airports, retail, and energy,” Parikh added.
One 97, which began out as a recharge platform, had moved its cost and service provider buying enterprise to Paytm Payments Bank (PPBL). However, with RBI freezing the actions of PPBL this yr, it targeted on UPI funds, distribution and service provider acceptance.

Nilesh Desai
Nilesh Desai
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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