By Akanksha raj
Jio Financial, on the other hand, stated, “We have always made and will continue to make declarations in compliance with our obligations.”
Jio Financial Services “has not been in any negotiations” to purchase Paytm’s wallet business, it clarified in a statement to exchanges after rumors surfaced that the Mukesh Ambani-led financial services provider was in talks to acquire Paytm wallet.
“We have always made and will continue to make disclosures in compliance with our commitments,” the business said in a statement to the exchanges.
Jio Financial Services Ltd (JFS) shares rose more than 15% on Monday after it was reported that the Mukesh Ambani firm was one of the frontrunners in acquiring Paytm’s wallet division amidst the present Paytm turmoil.
Crisis at Paytm.
Paytm is embroiled in controversy because the Reserve Bank of India (RBI) prohibited Paytm Payments Bank from carrying out any banking activity after February 29. The central bank cited noncompliance with KYC rules among other reasons.
What did reports say about Mukesh Ambani’s Paytm bid?
According to Hindu Business Line, HDFC Bank and Jio Financial Services are among the top bidders to acquire Paytm’s wallet. According to the article, Jio Financial Services has also asked for approval to conduct mutual fund activities in partnership with BlackRock Financial Management. Both are reportedly proposing an initial joint investment of $150 million apiece.
“With KYC-related issues compounding for Paytm, they’ve not been as aggressive with the business as they were before 2022 in the wallets business and if valuations on the table were decent, the talks with Jio would have fructified much earlier,” a source was quoted as saying by the article.
However, Jio Financial Services, a company that offers financial services through companies such as Jio Insurance Broking (JIBL), Jio Payment Solutions (JPSL), and Jio Finance (JFL), stated that it is not involved in any agreements in this regard.