Paytm shares fall below Rs 400 level, down 10%; Jio Financial denies reports of wallet biz talks

Shares of One 97 Communications Ltd (Paytm) plunged 10 per cent on Tuesday morning, taking its four-day losing streak to 48 per cent after Jio Financial Services Ltd  (JFS) denied engaging with Paytm to buy the latter's wallet business. Paytm also denied the speculative media reports, calling them "baseless and factually incorrect."

Following the development, the stock fell 9.77 per cent to hit a low of Rs 395.50 on BSE before recovering some ground. The Paytm stock was later trading at Rs 409.05, down 6.68 per cent. A total of 68.25 lakh shares, or  0.1 per cent Paytm equity, worth Rs 269.4 crore change hands at an average of Rs 394 per share, as per a media report.

Paytm said it has been informed by Paytm Payments Bank Limited, its associate company, that they have not been in any negotiations in this regard. Following the development, shares of Jio Financial Services also took a hit, falling 3.89 per cent to Rs 277.80.

Paytm, which denied any investigation by the Enforcement Directorate on OCL, its associates and management, said the additional media reports suggesting investigation into the violation of foreign exchange rules by Paytm or its associate Paytm Payments Bank Limited (PPBL), were baseless speculations.

"We would like to reiterate that the Company and its associate Paytm Payments Bank Limited are not the subject matter of any such investigation. Such media reports are entirely misleading, baseless and malicious, which harm the interests of all our stakeholders," Paytm said.

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