Paytm shares hit 5 per cent upper circuit during the morning trade on Wednesday after the fintech major clarified that there were no talks between its CEO Vijay Shekhar Sharma and Adani Group Chairman Gautam Adani.
Paytm stock touched 359.55 in the early trade following the company's clarification. "We hereby clarify that the abovementioned news item is speculative and the company is not engaged in any discussions in this regard. We have always made and will continue to make disclosures in compliance with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," Paytm stated..
Earlier a Times of India report, citing sources, claimed that Sharma met Adani on May 28 to "finalise contours of a deal".
Paytm Founder Sharma has 9.1 per cent stake in Paytm in his personal capacity besides 10.3 per cent through Resilient Asset Management, a foreign entity, as per figures from March end.
On May 22, Paytm parent company One97 Communications announced its earnings report for the March quarter, saying it recorded a a reduction in revenue and its consolidated net loss widened in the last three months of FY24. The fintech major's consolidated net loss widened to Rs 549.60 crore in the fourth quarter from Rs 219.8 crore in the quarter ended December. The consolidated net loss in the same quarter in 2023 was Rs 168.9 crore.
The revenue from operations saw a 3 per cent Year-on-Year dip to Rs 2,267.1 crore against Rs 2,334.5 crore in the March 2023 quarter.
In February, RBI barred Paytm's banking arm Paytm Payments Bank Limited (PPBL) from accepting deposits or other transactions in accounts, wallets and Fastags. The company had earlier said it suffered a Rs 300-500 crore loss due to the curbs by the central bank.
