Paytm Share Price Soars as Adani Looks to Buy Stake 📈💰
Today marked the fourth consecutive day of decline in the domestic equity market, but the parent company of India’s largest digital payment company, Paytm, saw a significant surge in its shares. Sources say that Gautam Adani, the second richest man in India and Asia, is ready to play a major role in the digital payment sector and is looking to buy a stake in Paytm’s parent company, One97 Communications.
Following the news of Paytm’s shares rising rapidly, Paytm’s founder and CEO, Vijay Shekhar Sharma, is hoping to meet with Adani at his Ahmedabad office on Tuesday. The shares of One97 Communications, Paytm’s parent company, hit a 5% upper circuit as soon as the market opened in the morning. By Thursday (May 30, 2024), the share was trading at 378 rupees, up by 5.02%.
Recently, there have been reports in the media that Gautam Adani is preparing to buy a stake in Paytm. The company’s share on the BSE rose by 5% from 342.45 rupees to 359.55 rupees. According to media reports, Adani is also in talks with some funds from West Asia to invest in Paytm.
Earlier this year, the RBI had imposed a ban on some transactions of Paytm Payments Bank Limited from March 15, affecting the company’s quarterly results. The loss for Paytm in the March quarter was 550 crore rupees, compared to 169 crore rupees in the same quarter last year.
One97 Communications was founded by Vijay Shekhar Sharma in 2007. Paytm started as a recharge platform and later transferred its payment and merchant acquisition business to Paytm Payments Bank, but the RBI recently imposed a ban on the operations of PPBL.
After a notable performance in the online business sector, Paytm launched its IPO in 2021 with an issue price of ₹2,150, but the stock price has not yet reached the issue price. Paytm’s share reached a high of 998.30 rupees, while the market closed at 74,753.29 with a decline of 417.16 points on Wednesday morning.
Several media reports have mentioned that Paytm’s founder and CEO, Vijay Shekhar Sharma, met with Gautam Adani in Ahmedabad on Tuesday. Sharma holds a 9.10% stake in One97 Communications and also has a 10% stake in the company through foreign firm Resilient Asset Management. However, Paytm has informed the exchange that the reports are rumors and the company is not discussing this matter. They said, “We want to clarify that the news in the media is just a rumor. The company does not talk about this with anyone.”
Disclaimer: This is News Coverage with Opinions of Experts and Should Not Be Taken as Direct Market Buying Tip. Market is always subject to risk. We recommend taking our content as research before investing.
