Adani Group in Talks for Paytm Stake Acquisition with Vijay Shekhar Sharma

Adani Group chairman Gautam Adani aims to acquire a stake in One 97 Communications, the parent company of Paytm, according to sources familiar with the matter.

Sources revealed that Paytm founder & CEO Vijay Shekhar Sharma held discussions with Adani at the latter’s office in Ahmedabad on Tuesday to finalize the details of a potential deal.

If successful, this transaction between the two entrepreneurs would mark Adani Group’s entry into the fintech sector, positioning it against competitors like Google Pay, Walmart-owned PhonePe, and Mukesh Ambani’s Jio Financial. It would also represent a significant acquisition for Adani following investments in Ambuja Cements and NDTV.

Sharma currently holds about 19% in One 97, valued at Rs 4,218 crore based on Tuesday’s closing price of Rs 342 per share. He directly owns 9% in Paytm and holds an additional 10% through a foreign entity, Resilient Asset Management. Both Sharma and Resilient are listed as public shareholders in One 97’s filings with stock exchanges.

Under Sebi rules, an acquirer holding less than 25% in a target company must make an open offer for a minimum 26% stake, or the entire share capital.

Discussions between Adani and Sharma have been ongoing, with their recent meeting focused on finalizing the deal’s specifics. Adani is also reportedly in talks with funds from West Asia to bring them in as investors in One 97.

Major shareholders of One 97 include private equity fund Saif Partners (15%), Antfin Netherlands (10%), and the company’s directors (9%).

Although emails sent to Adani Group and One 97 on Tuesday did not receive a response, One 97, founded by Sharma in 2007, boasts a market cap of Rs 21,773 crore.

Despite financial challenges and regulatory hurdles faced by Paytm, aligning with Adani Group could provide the financial backing needed to address compliance issues and stabilize operations. Additionally, integrating Paytm’s digital payments platform into Adani’s business portfolio could enhance its digital footprint and position Adani as a key player in the fintech sector.

However, Paytm has denied engaging in any discussions to sell a stake, stating that the news item is speculative.