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Today: Jun 14, 2024

India’s Paytm sees 8% boost as Jio Financial denies deal rumors.

1 min read

TLDR:

Paytm, India’s digital payments app, saw its shares rise by as much as 8% on Tuesday after denying media reports that Indian billionaire Mukesh Ambani’s Jio Financial Services was buying its wallet business. The reports were dismissed by Paytm as “speculative, baseless, and factually incorrect.” Paytm’s shares had experienced a heavy selloff in the previous sessions, losing about $2.5 billion in market value. The market rout was triggered by the Reserve Bank of India ordering Paytm Payments Bank to stop accepting fresh deposits in its accounts or its digital wallet from March. The reports of a potential acquisition by Jio Financial had sent shares of the company up by as much as 16.5% on Monday.

Key Points:

  • Paytm’s shares rose 8% on Tuesday, rebounding from a heavy selloff that wiped off about $2.5 billion in market value over the last three sessions.
  • Reports that Jio Financial Services, owned by Indian billionaire Mukesh Ambani’s conglomerate Reliance, was buying Paytm’s wallet business were dismissed as “speculative, baseless, and factually incorrect” by both Paytm and Jio Financial.
  • The Reserve Bank of India ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts or digital wallet from March, which triggered the selloff in Paytm’s shares.
  • The reports of a potential acquisition by Jio Financial had boosted the company’s shares by up to 16.5% on Monday.