Jio Financial disputes having discussions to acquire the Paytm wallet company. The media has reported that One 97 Communications, the parent company of Paytm, is in talks to sell its wallet business.
However, billionaire Mukesh Ambani’s Jio Financial Services has refuted these rumors. In a regulatory filing on Monday night, JFSL said, “We clarify that the news item is speculative and we have not been in any negotiations in this regard.“
Following a request for comments on the proposed transaction, the Bombay Stock Exchange (BSE) provided the clarification.
Additionally, One 97 Communications denied the rumors, calling them “speculative,” and made it clear that it has not entered into any discussions to sell its wallet business with Jio Financial.
Our associate company, Paytm Payments Bank Limited, has notified us that they have not engaged in any conversations related to this matter.
After the first purchase rumors earlier in the day, Jio Financial’s share price increased by 14%. Paytm shares, meanwhile, kept going downhill recently.
The reduction occurs in the wake of the Reserve Bank of India’s (RBI) assault on Paytm Payments Bank, which has raised ongoing investor concerns.
According to reports, the RBI is thinking about canceling Paytm Payments Bank’s banking license because of purported regulatory irregularities, including Know Your Customer (KYC) infractions and money laundering allegations.
Paytm has denied rumors that the Enforcement Directorate is looking into it or its CEO in relation to these accusations.
Beginning on February 29, 2024, Paytm Payments Bank will not be able to onboard new users or complete critical financial transactions. Additionally, topping up customer accounts, prepaid cards, wallets, and FASTags—which are used to pay road tolls—is forbidden.
The shares of One 97 Communications fell by an additional 10% on Monday, hitting Rs 438.35 on the BSE Sensex.
Likewise, at Rs 438.50, the NSE Nifty reached its lower circuit limit. Due to a 42% decline in stock prices over the last three days, the company’s market valuation has experienced a startling loss of Rs 20,471.25 crore.
