Jio Financial’s Statement:
In response to recent speculations, Jio Financial Services has issued a statement denying any negotiations to acquire Paytm’s wallet business. The company emphasized its commitment to transparency and compliance with regulatory obligations. It clarified that it has not engaged in any discussions regarding the acquisition of Paytm’s wallet business.
Reports and Market Reaction:
Despite rumors suggesting Jio Financial’s involvement in acquiring Paytm’s wallet business, the company’s shares surged over 15% on Monday. Reports indicated that Jio Financial, along with HDFC Bank, was considered a top contender for the acquisition. However, Jio Financial Services affirmed its focus on financial activities conducted through its subsidiaries and denied involvement in any negotiations with Paytm.
Crisis at Paytm and Industry Speculation:
Paytm has been embroiled in controversy following the Reserve Bank of India’s decision to restrict Paytm Payments Bank from conducting banking activities due to non-compliance with KYC guidelines. Reports suggested that the ongoing crisis at Paytm could have spurred discussions regarding the sale of its wallet business. However, Jio Financial Services reiterated its stance, emphasizing that it has not entered into any negotiations concerning the acquisition of Paytm’s wallet business.
