One97 Communications, the parent company of Paytm, had its opening trading on May 31 hit a 5% upper circuit following a block deal involving 75.20 lakh shares, or 1.2 percent of the firm, that was executed on the exchanges.

The whole value of the block sale, which was completed at an average price of Rs 391 per unit, was Rs 296.30 crore. In addition, the transaction's average floor price was 3.6% higher than the stock's prior closing price of Rs 377.40 a share.

Paytm shares were trading at Rs 391.60 on the NSE at 09.39 am, somewhat below the day's high of Rs 396.25. The current session also signifies the third day in a row that Paytm's shares have reached its five percent upper circuit.

Following the block transaction, volumes in the counter also surged dramatically, with one crore shares trading hands on the exchanges, a significant increase above the one-month average of 36 lakh shares.

Since rumors circulated earlier this week that billionaire Gautam Adani may be considering purchasing stock in One97 Communications, the firm that powers Paytm, the stock has been surging.

Paytm clarified the situation, calling the story as conjecture. Paytm released an official statement that said, "We hereby clarify that the news item referenced above is hypothetical and that the firm is not currently involved in any negotiations regarding it. In accordance with our responsibilities under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we have always made and will continue to make disclosures."

In a similar vein, the Adani Group vehemently repudiated the media allegation, characterizing it as mere conjecture.