Jio Financial Services Ltd (JFSL), a spin-off of Reliance Industries, saw its shares surge 14% on the NSE on Monday, following the news that it is in talks with One 97 Communications, the parent company of Paytm, to acquire its wallet business. The stock reached a one-day high of Rs. 289.75.
One 97 Communications, which is facing financial troubles, is also in discussions with HDFC Bank, another leading private sector bank, to sell its wallet business, which is under Paytm Payments Bank. The talks with Jio Financial started in November last year, while the talks with HDFC Bank began shortly before the Reserve Bank of India imposed a ban on Paytm Payments Bank. According to The Hindu Business Line, Jio Financial may also propose to take over Paytm Payments Bank as part of a larger rescue deal.
Senior executives from the fintech and banking sectors told The Hindu Business Line that Jio Financial and HDFC Bank are the main contenders to buy Paytm’s wallet business, which is one of the largest in India. The deal, if finalized, could have a significant impact on the digital payments landscape in the country.
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