Mukesh Ambani’s Jio Financial has squashed all media reports regarding the RIL boss acquiring embattled Paytm’s wallet business. In a late-night regulatory filing, Jio Financial termed all the media reports as ‘speculative’. The fintech entity also clarified that it has not been involved in any kind of negotiations with Paytm regarding the sale of wallet business.
The clarification came after a report by the Hindu Business Line said that Jio Financial and HDFC Bank are among the contenders for buying Paytm’s wallet business. Paytm Payments Bank is not in talks to sell it wallet business to Ambani, Paytm said on Tuesday morning.
Meanwhile, the D-Street rout of Paytm shares continued for the fourth consecutive session on Tuesday, prompted by reports that federal anti-fraud agency is probing potential violations of foreign exchange rules by platforms operated by the company. The stock tumbled by up to 9.9% to reach a historic low of Rs 395 ($4.76) on the National Stock Exchange, later recovering slightly to trade down by 6%.
Paytm shareholders have faced substantial losses, amounting to as much as $2.8 billion since the recent directive from the central bank instructing Paytm affiliate Paytm Payments Bank to wind down a significant portion of its operations, including deposits, credit products, and its widely-used digital wallets, by February 29. In response to the allegations, a Paytm spokesperson refuted any wrongdoing related to foreign exchange laws, dismissing the claims as ‘unfounded and factually incorrect.’