Jio Financial Shares Dip as Paytm Wallet Acquisition Talks Dismissed
In a rollercoaster ride for investors, shares of Mukesh Ambani’s Jio Financial Services took a 7% nosedive on Tuesday, hitting a low of Rs 268.20. This plunge came after both the NBFC and One 97 Communications clarified that there were no discussions regarding the acquisition of Paytm’s wallet business.
The turbulence began after a media report on Monday sparked a 14% surge in Jio Financial shares, suggesting talks of acquiring Paytm’s wallet business had been ongoing since November. However, both companies swiftly dismissed these claims, labeling them as speculative.
Jio Financial, born out of Reliance Industries (RIL) incubator last year, had the potential to gain a significant foothold in the digital payments segment with the speculated acquisition. However, with talks now off the table, the landscape remains unchanged, dominated by giants like PhonePe and Google Pay.
Despite the setback, Jio Financial already boasts its own payments bank, Jio Payments Bank, which recently revamped its services to include digital savings accounts, bill payments, and even launched debit cards. With a network of 2,400 business correspondents, the NBFC is poised to continue its digital financial services expansion.
As the dust settles on this whirlwind of speculation, investors wait with bated breath for the next move in the dynamic fintech arena.