New Delhi: According to reports, Sunil Mittal, the Indian telecommunications magnate, is looking to acquire a stake in Paytm by merging his financial services unit, Airtel Payments Bank, with Paytm Payments Bank through a stocks deal. Additionally, he is attempting to purchase Paytm shares from other shareholders. However, discussions are in the early stages, and there is no guarantee that Airtel and Paytm will reach an agreement.
Paytm, also known as One 97 Communications Ltd., has seen its shares rise by about 40% from its lowest point in November, as it approaches profitability. The company reported a narrower loss for the third quarter, thanks to its efforts to increase its customer base, according to an exchange filing.
In statement, a Paytm representative said that the company is “fully focused on its strong organic growth journey and is not involved in any such discussions,” while a spokesperson for Bharti Enterprises Ltd., which is controlled by Mittal, declined to comment.
Paytm, which has never traded above its IPO price of 2,150 rupees since going public in November 2021, was India’s most valuable startup. The company had the worst first-year share plunge among large IPOs over the past decade. Paytm’s supporters include SoftBank Group Corp. of Japan and Ant Group Co. of China. Mittal’s payments bank, which is six years old, has 129 million customers and was profitable for the fiscal year ending March 31, 2022, according to exchange filings.
Paytm is expanding its product offerings to attract more customers, with the aim of persuading investors of its profit potential. According to data compiled by reports, eight brokerages have a buy or overweight recommendation on One 97 Communications, with a consensus 12-month price target of 944.64 rupees.
