Jio Financial Services Jumps 15% Amid Paytm Wallet Acquisition Talks. Jio Financial Services Ltd (JFS) saw a significant increase in its stock value, rising over 15% on Monday. This surge came as reports indicated that the company, owned by Mukesh Ambani, is among the top contenders to acquire Paytm’s wallet business, which is currently facing a crisis.
Jio Financial Services Jumps 15 percent Amid Paytm Wallet Acquisition Talks
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JFS shares were up by 15.80% at Rs 293.90 on the National Stock Exchange (NSE). In contrast, Paytm shares were locked at a 10% lower circuit limit, experiencing a 43% decline in three trading sessions due to regulatory challenges.
JFS, a holding company, has a joint venture called Jio Payments Bank and operates financial services through subsidiaries such as Jio Insurance Broking (JIBL), Jio Payment Solutions (JPSL), and Jio Finance (JFL).
Earlier reports suggested that Paytm is in preliminary talks with potential investors to sell its wallet business. HDFC Bank and Jio Financial Services are reportedly ahead in the race for the acquisition. JFS has sought approval to engage in mutual fund activities in partnership with BlackRock Financial Management, with an initial joint investment of $150 million each.
Paytm has been dealing with challenges, including RBI restrictions on its payments bank activities and reports of an Enforcement Directorate investigation into alleged money laundering, which the company denies. A Bloomberg report has added to uncertainties, suggesting that the RBI might consider canceling Paytm Payments Bank’s license as early as next month.
While, In response, a spokesperson from Paytm Payments Bank stated, “We refrain from commenting on market speculation. We fully comply with the regulator’s guidance, and our team is dedicated to ensuring a seamless customer experience with PPBL’s products.”
