Tuesday, February 27, 2024

Is Ambani eyeing Paytm wallet? Jio Financial’s shares become rocket

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Mukesh Ambani

Is Mukesh Ambani eyeing Paytm Wallet? This question has been floating in the market for a few days. This news got further impetus when RBI took actions like ban on Paytm wallet. What is being seen now is really shocking. Yes, as soon as this news broke, the shares of Mukesh Ambani’s NBFC Jio Financial have become a rocket. Mukesh Ambani’s shares have fallen by more than 14 percent and have reached record levels. On the other hand, there is also news that the fintech company is also in touch with the country’s largest private lender HDFC.

According to the report, One 97 Communications is in talks with Mukesh Ambani’s NBFC and private lender HDFC Bank to sell its wallet business. Citing senior executives in the fintech and banking sectors with knowledge of the matter, The Hindu Business Line said HDFC Bank and Jio Financial are considered to be the frontrunners to buy Paytm’s wallet business, which will be merged into Paytm Payments Bank. Comes under.

It is being said that Vijay Shekhar Sharma’s team was in talks with Jio Financial since last November, according to the report, talks with HDFC Bank had started just before the RBI ban on Paytm Payments Bank. The report also said that as part of a larger bailout plan, Jio may offer to acquire Paytm Payments Bank.

Jio Financial shares rose 14 percent

According to BSE data, shares of Jio Financial remain a rocket. The company’s shares are trading at Rs 283.25 with a rise of 12 per cent at 1 pm. Whereas during the trading session, the company’s shares reached a record level with a rise of more than 14 percent and the company’s shares reached a 52-week high of Rs 289.70. However, today the company’s shares opened at flat level of Rs 256. The company’s shares closed at Rs 253.75 on Friday. At present the market cap of the company has crossed Rs 1.83 lakh crore.

Paytm crisis

Paytm is facing an existential crisis after the RBI barred the payment bank from accepting any deposits or credit in customers’ accounts. The regulator is also said to be considering revoking the banking license of Paytm over possible money laundering and know-your-customer (KYC) violations. Security agencies are considering the possibility that this unit can be used for money laundering. However, Paytm has denied reports that neither the company nor its founder and CEO are being investigated by the ED on money laundering charges. After the RBI order, Paytm shares have fallen by more than 42 percent in just 3 days.

What is the gameplan of Jio Financial?

Jio Financial, which was spun off from Reliance Industries (RIL) last year, owns Jio Payments Bank, which has revamped the platform to launch digital savings accounts and bill payments with an on-the-ground network of 2,400 business correspondents. It has also launched a debit card. In the payment solutions business, Jio has launched Jio Voice Box, enabled Jio Phone with UPI, and is implementing QR codes across the ecosystem. Subsidiary companies of JFSL include Jio Finance, Jio Insurance Broking, Jio Payments Bank, Jio Payments Solutions etc.

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