Paytm Stock Soars Amid False Acquisition Rumors

Shares of One97 Communications, the owner of Paytm, surged by 5% amid rumors of an acquisition by the Adani Group, which both companies denied. Founder Vijay Shekhar Sharma, who owns significant stakes in Paytm and its payments bank, has seen the company's market value dip post-banking unit shutdown.

PTI | New Delhi | Updated: 30-05-2024 13:02 IST | Created: 30-05-2024 13:02 IST
Paytm Stock Soars Amid False Acquisition Rumors
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Shares of One97 Communications, which owns the brand Paytm, on Thursday jumped 5 per cent to hit its upper circuit limit for the second straight session amid reports of Adani and Paytm were in talks to acquire a stake in the fintech company.

However, One97 Communications Ltd on Wednesday said it is not in talks to sell a stake to the Adani Group, while the Gujarat-based conglomerate has also termed such reports as ''false and untrue.'' The stock climbed 4.99 per cent each to Rs 377.40 and 377.50 -- its upper circuit limit -- on the NSE and BSE, respectively.

Paytm founder Vijay Shekhar Sharma owns 9.1 per cent of Paytm in his personal capacity and another 10.3 per cent through Resilient Asset Management, a foreign entity, as of end-March.

Since shutting its banking unit after falling foul to regulations, Paytm has lost about half of its market value and there has been consistent speculation about it being a potential takeover target.

In February, it was reported to be in talks with billionaire Mukesh Ambani's Jio Financial Services but both entities had denied the same.

Paytm recently reported a widening of loss in the fourth quarter of the financial year 2023-24 to Rs 550 crore, following the ban imposed by the Reserve Bank of India (RBI) on transactions related to its payments bank.

The RBI barred Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions or top-ups in any customer accounts, wallets, and FASTags, keeping in view the interest of customers, including merchants from March 15 onwards.

The company during the reported quarter wrote off Rs 227 crore investment for a 39 per cent stake in PPBL, following future uncertainties associated with the bank's business operations including the uncertainty of any other regulatory development etc.

Sharma holds 51 per cent in PPBL.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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