Paytm's Transformation: Adani's Stake Acquisition Talks Wrap Up!

One97 Communications Addresses Speculation Regarding Adani's Interest in Paytm

One97 Communications clarified rumors suggesting Gautam Adani's interest in acquiring a stake in Paytm's parent company. They stated that such reports are speculative and the company is not engaged in any discussions regarding this matter. The company reaffirmed its commitment to transparency in compliance with regulatory requirements.

According to a report in the Times of India, Adani is considering acquiring a stake in One97 Communications. The report mentioned a meeting between Vijay Shekhar Sharma, the founder and CEO of Paytm, and Adani to finalize a potential deal. Adani is also reportedly reaching out to West Asian funds to attract them as investors in One97 Communications.

Sharma's ownership in One97 Communications stands at approximately 19%, valued at Rs 4,218 crore. His direct stake in Paytm is 9%, with an additional 10% held through Tough Asset Management, a foreign entity. Both Sharma and Mobile are listed as public shareholders.

Other stakeholders in One97 Communications include Saif Partners, a private equity fund with a 15% stake, Antfin Netherlands, backed by Jack Ma, owning 10%, and the company's directors collectively holding 9%.

Founded by Sharma in 2007, One97 Communications had the country's second-largest IPO and currently boasts a market capitalization exceeding Rs 21,000 crore. Paytm is reportedly planning to reduce its workforce by 15-20% in the current fiscal year to lower operating costs. In the previous fiscal year, the company had an average of 32,798 employees, with 29,503 actively engaged, and an average cost per employee of Rs 7,87,000. In FY24, total expenses surged by 34% year-on-year to Rs 3,124 crore, with the average employee cost estimated to have increased to Rs 10,60,000.