Jio Financial Services (JFS) shares rose more than 15% to a new high on Monday following a media report indicating that the company was among the frontrunners in acquiring Paytm’s wallet business. Jio Finance shares surged 16.25% to a record high of ₹295.00 on the BSE. Meanwhile, Paytm shares were trapped in a 10% downward circuit at a record low level.
Over thirteen percent of Jio Financial Services’ shares surged in value during trading on Monday (February 5), reaching an all-time high of Rs 295.7 per share on the Bombay Stock Exchange (BSE). Following the publication of allegations that stated Jio Financial Services is in negotiations to purchase Paytm’s wallet business, the stock experienced a surge.
According to the sources, HDFC Bank is another potential contender to purchase the business of providing financial technology wallets. At the time of the market’s close, the price of a share of Jio Financial Services was Rs 289.05, representing a 13.91 percent increase, or Rs 35.3. At the same time, the company’s market capitalization was determined to be 1,83,641.68 crore.
, One 97 Communications, Paytm’s parent firm, is in exploratory talks with a few investors for selling the wallets business. According to insiders, Jio Financial Services and HDFC Bank were among the early bidders for Paytm’s wallet business.
Paytm shares fell after the Reserve Bank of India (RBI) prohibited Paytm Payments Bank (PPBL) from carrying out certain operations following a system audit report and subsequent compliance validation report by external auditors.
Jio Financial Services is a subsidiary of Reliance Industries, which is led by billionaire Mukesh Ambani. The non-banking finance company (NBFC) conducts its financial services business through consumer-facing subsidiaries Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL), as well as a joint venture called Jio Payments Bank Limited.
Mukesh Ambani
The company collaborated with BlackRock, the world’s largest asset manager, to establish an asset management company with a $300 million joint investment. Jio Financial Services stated that their joint venture, Jio BlackRock, would provide “tech-enabled access to affordable, innovative investment solutions for millions of investors in India.”
JFS recorded a consolidated net profit of ₹293.82 crore for the quarter ending December, a 56% decrease from the previous quarter (Q2FY24). In Q3FY24, the company’s consolidated revenue from operations decreased 32% sequentially to ₹413.61 crore from ₹608.04 crore.
JFS separated from Reliance Industries in 2023 and debuted on the stock exchanges on August 21 of that year.
At 1:50 pm, Jio Financial Services shares were up 15.78% to ₹293.80 on the BSE.
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