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Jio Financial Services Shares Increased upto 14%
After acquiring a heavy stake in Disney India, Reliance Industries Limited (RIL) is all set to acquire another multinational financial technology company. The rumour related to the latest deal of billionaire Mukesh Ambani is all over the news. This news existed after Jio Financial Services shared a report showing the company’s rise in shares. According to the reports, the shares of Jio Financial Services increased up to 14% and the price closed on Monday at ₹289.05 on BSE.
The rise in share price was witnessed after the report in a newspaper that claimed the parent company of Paytm, One 97 Communications is planning to sell its wallet business to Mukesh Ambani-owned NBFC and HDFC Bank (a private sector bank). One 97 Communications has already been in talks with the company regarding the sale. Jio Financial has also made a statement regarding the purchase of a Paytm wallet in which they cleared that there is no scope for negotiations in this regard.
Paytm Faces Crisis as RBI Halts Financial Activity: Wallet Business Sale Imminent
The media reports stated that Jio Financial and HDFC Bank are in the race to acquire the wallet business of Paytm. It is assumed that the deal regarding the purchase will only happen between HDFC Bank and Jio Financial. Both are frontrunners but the chances of Jio Financial are quite high. As per the reports, the team of Vijay Shekhar Sharma, the CEO of Paytm is likely to be in talks with Mukesh Ambani led the company last November, but the meeting regarding the selling of Paytm wallet business with HDFC Bank just came into existence after the ban of the Reserve Bank of India on Paytm Payments Bank.
As per other reports, as part of a larger bailout plan, Mukesh Ambani’s company offered to obtain Paytm Payments Bank. It is worth noting that Paytm is currently facing a crisis ever since the RBI issued the order to the payment bank to halt any kind of financial activity that includes accepting any deposits or credits to its users. It was earlier reported that agencies are looking at the possibility of the entity being used as a front to launder money. However, Paytm has already rejected all the accusations made against the company and its founder.
Paytm Shares Plummet 42% Following RBI Orders, Investigation Ruled Out
The company released a statement in which it said that neither the founder and CEO nor the company are being probed by the Enforcement Directorate on money laundering charges. However, after the released orders of RBI, the shares of Paytm have constantly dropped and within three days, it lost around 42%. Mukesh Ambani’s led company owns Jio Payments Bank which has re-platformed to introduce digital saving accounts and other financial activities including bill payments. Jio Payments Bank has also introduced debit cards in the market.
Besides, ever since the RBI issued the orders to halt the financial activities of Paytm into Paytm Payments Bank Ltd (PPBL), the users or customers of Paytm have been worried. To address the situation, Paytm CEO Vijay Shekhar Sharma along with its employees of PPBL appeared in a virtual town hall in which he stated “You are a part of the Paytm family, and there is nothing to worry about. Several banks came forward to help us. We are not completely sure of things…like what exactly went wrong. But we handle the situation and figure out everything soon. We will reach out to the RBI to see what can be done.”
Is Jio Financial Services Planning To Acquire Paytm Wallet Business?
To clear the confusion regarding the planning to acquire the Paytm wallet business, Jio Financial Services has issued a statement in which the company has denied all the news related to this matter. According to Jio Financial the company “has not been in any negotiations” to obtain the wallet business of Paytm. The company stated in the released statement to the exchanges that “We have always made and will continue to make disclosures in compliance with our obligations.”