Jio Financial Services (JFS) share price spiked over 15% to a record high on Monday amid a media report suggesting that the company was among the forerunners to acquire Paytm’s wallet business. Jio Finance shares jumped as much as 16.25% to a new high of ₹295.00 apiece on the BSE. Meanwhile, Paytm shares remained locked at 10% lower circuit at its record low level.
A report published by Hindu BusinessLine said that One 97 Communications, the parent company of Paytm, was in exploratory talks with a few investors to sell the wallets business. Jio Financial Services and HDFC Bank were said to be among the forerunners to acquire Paytm’s wallet business, it reported quoting sources.
Paytm shares crashed after the Reserve Bank of India (RBI) barred Paytm Payments Bank (PPBL) from conducting certain operations following a system audit report and subsequent compliance validation report of external auditors.
Jio Financial Services is a demerged arm of billionaire Mukesh Ambani-led Reliance Industries. The non-banking finance company (NBFC) operates its financial services business through its consumer-facing subsidiaries, namely Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL), and a joint venture, namely Jio Payments Bank Limited (JPBL).
The company had partnered with the world’s largest asset manager BlackRock to set up an asset management company with a combined investment of $300 million. Jio Financial Services had said that the joint venture, Jio BlackRock, would deliver “tech-enabled access to affordable, innovative investment solutions for millions of investors in India.”
JFS reported a consolidated net profit of ₹293.82 crore for the quarter ended December, a fall of 56% from ₹668.18 crore in the previous quarter (Q2FY24). The company’s consolidated revenue from operations in Q3FY24 slumped 32% on sequential basis to ₹413.61 crore from ₹608.04 crore.
JFS was demerged from Reliance Industries in 2023 and made its debut on the stock exchanges on August 21 of that same year.
At 1:50 pm, Jio Financial Services shares were trading 15.78% higher at ₹293.80 apiece on the BSE.
The article originally appeared on Live Mint.
