- Sunil Mittal is considering merging Airtel Payments Bank with Paytm Payments Bank
- Paytm’s shares have rebounded 40% since November 2022 due to customer base expansion and increased revenue
- Airtel Payments Bank had 129 million customers and was profitable until March 31, 2022
- Mittal is also interested in buying Paytm shares from existing shareholders
- Talks are in the early stages, and there is no guarantee a deal will be reached
- If the merger proceeds, it would consolidate India’s fintech market further.
According to insiders, Sunil Mittal, the telecommunications mogul from India, is said to be considering a merger between his financial services division, Airtel Payments Bank, and Paytm Payments Bank. Mittal is also said to be interested in acquiring Paytm shares from existing shareholders. The discussions are reportedly in their early phases, and there is no assurance that an agreement will be finalized.
Paytm Sees Shares Rebound, But Struggles to Meet IPO Price
After reaching a record low in November 2022, Paytm’s shares, which are formally known as One 97 Communications Ltd., have recovered by approximately 40%.
The company’s drive to attract new customers has resulted in increased revenue and a decrease in losses in the third quarter of its fiscal year.
Despite this, Paytm has never surpassed its IPO price of 2,150 rupees since its debut in November 2021 and suffered the largest first-year share drop among significant IPOs in the past decade.
Airtel Payments Bank Turns Profitable, While Paytm Broadens Product Offerings
Based on exchange filings, Airtel Payments Bank, owned by Mittal, had 129 million customers and was profitable until March 31, 2022. Paytm, on the other hand, is broadening its range of products to appeal to a larger customer base and demonstrate its revenue-generating potential to investors.
According to Bloomberg data, analysts have given Paytm positive assessments, with eight brokerages providing either a buy or overweight rating on One 97 Communications and a consensus 12-month price target of 944.64 rupees.
Paytm and Bharti Enterprises Decline to Comment on Merger Talks
Both Paytm and Bharti Enterprises, which is owned by Mittal, have declined to comment on the issue. If the merger between Airtel Payments Bank and Paytm Payments Bank were to proceed, it would further consolidate India’s fintech industry, which has been expanding rapidly in recent years.
Indian telecommunications tycoon Sunil Mittal is reportedly looking to merge his financial services unit, Airtel Payments Bank, with Paytm Payments Bank and acquire Paytm shares.
Paytm’s shares have rebounded, but the company has never traded above its IPO price since going public. Airtel Payments Bank has been profitable and has over 129 million customers. Both companies have declined to comment.