India's Paytm experiences a 8% increase in shares after Jio Financial confirms no deal talks for its wallet business.
- On Tuesday, Paytm, India's digital payments app, experienced an 8% increase in value, recovering from a significant decline that resulted in a loss of approximately $2.5 billion in market value over the past three sessions.
- Paytm dismissed the reports as “speculative, baseless and factually incorrect.”
- The market value of Paytm, listed as One 97 Communications on India's National Stock Exchange, decreased by $2.47 billion during the heavy selloff.
On Tuesday, Paytm, India's digital payments app, experienced an 8% increase in value, recovering from a significant loss of approximately $2.5 billion in market value over the past three sessions.
Mukesh Ambani denied media reports that he was purchasing Paytm's wallet business.
Paytm rejected the reports as "speculative, baseless, and factually incorrect."
The market value of Paytm shares, listed on India's National Stock Exchange, decreased by $2.47 billion during a heavy selloff. As of Monday's close, Paytm had a market capitalization of $3.35 billion, according to LSEG data.
On Monday, Paytm shares reached a new low, dropping 10% after losing 20% each day on Thursday and Friday. Despite rising as much as 8% on Tuesday, the stock ultimately ended the day lower.
On Wednesday, the Reserve Bank of India ordered Paytm Payments Bank to halt new deposits in its accounts and digital wallets, resulting in a market rout.
Yesterday, Jio Financial, a subsidiary of Reliance, reportedly acquired Paytm's wallet business. This news caused Jio Financial's shares to rise by as much as 16.5% on an intraday basis.
Paytm's digital wallet business is not being acquired by Jio Financial, as confirmed by a statement issued by Jio Financial to the exchange on Monday.
The company stated that the news report is speculative and they have not engaged in any negotiations related to it.
Paytm clarified that they have not engaged in any talks regarding the matter.
Shares of Jio Financial were 4.4% lower on Tuesday.
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