Jio Financial Refutes Rumors Of Potential Acquisition Of Paytm Wallet

Jio Financial Services Ltd. has denied being in talks to acquire the crisis-hit One97 Communications Ltd.'s Paytm wallet.

Reliance Industries Ltd.'s financial services arm clarified that the reports of potential acquisition is "speculative and we have not been in any negotiations in this regard".

"We have always made and will continue to make disclosures in compliance with our obligations," Jio said, in an exchange filing on Tuesday.

The statement from the company comes after the exchanges sought clarifications on media reports of the potential acquisition. According to the reports, HDFC Bank Ltd. was also a leading contender along with Jio Financial Services to acquire the wallet business of Paytm.

Shares of Jio Financial Services rose as much as 16.5% to Rs 295.7 apiece. It later pared gains to close 13.9% higher at Rs 289.1 per share on the National Stock Exchange.

NDTV Profit had earlier reported that Paytm operator One97 Communications cannot sell the wallet business of Paytm Payments Bank as recent restrictions on its activities by the central bank does not allow transfer of business.

The RBI found major supervisory concerns and persistent non-compliance and, on Jan. 31, restricted Paytm Payments Bank from undertaking any fresh deposit or credit transactions from Feb. 29. After this, One97 Communications said it would be working only with other banks and not its own payment banks.