One 97 Communications, the parent company of Paytm, has dismissed the speculation about the Adani Group acquiring a stake in the company.

What Happened: The clarification comes in response to a Times of India report. The company, in a letter to the exchanges, denied the news. The report suggested that the Adani Group was in talks with Vijay Shekhar Sharma, the founder of Paytm, to acquire a stake in the company.

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The report stated that Sharma had met with Adani Group chairman Gautam Adani in Ahmedabad to talk about the deal. Another report on Tuesday said that the Group was looking to enter the payments and e-commerce business. A possible acquisition of the payments giant could have given the ports-to-energy conglomerate a headstart in the fintech space.

The speculation about the Adani Group’s interest in Paytm came at a time when the digital payments platform was facing financial strain and regulatory action. The company’s earnings for the March quarter were also heavily impacted due to the hurdles and it expects it to get worse during the June quarter.

Price Action: Paytm’s share price was locked in the 5% upper circuit at ₹359.45 as the markets opened on Wednesday.

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.