Paytm shares: Jio Financial shares up 15% on report firm eyeing Paytm wallet biz

Shares of Jio Financial Services Ltd (JFS) soared over 14 per cent in Monday's trade amid a media report suggesting HDFC Bank and the Reliance Industries' demerged financial services firm were among the forerunners to acquire the wallet business of One 97 Communications Ltd (Paytm). Following the development, the JFS stock rose 15.31 per cent to hit fresh high of Rs 292.60. Shares of Paytm were locked at a 10 per cent lower circuit limit, falling 43 per cent in three trading sessions. HDFC Bank Ltd shares were trading flat.

Jio Financial Services is is a holding company, which has a joint venture (JV) namely Jio Payments Bank. It is operating financial services business through consumer-facing subsidiaries such as Jio Insurance Broking (JIBL), Jio Payment Solutions (JPSL) and Jio Finance (JFL).

Earlier today, a report by the Hindu BusinessLine quoted highly placed sources while suggesting Paytm is in exploratory talks with a few interested investors to sell the wallets business. HDFC Bank and Jio Financial Services are said to be among the forerunners to acquire the same, it reported.

JFS also has submitted application for carrying on mutual fund activities along with BlackRock Financial Management, was is consideration for getting an in-principle approval. Jio Financial and BlackRock are targeting to initially invest $150 million each in the joint venture.

Paytm shares have been under pressure after the RBI put restrictions on the activities of its payment bank. There were many reports of Enforcement Directorate (ED) investigating money laundering cases against the company and its founder and CEO,  which the fintech major denied. A  Bloomberg report earlier suggested that the RBI was considering scrapping the license of Paytm Payments Bank as early as next month.

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