A restaurant advertises the usage of the Paytm digital cost system in Mumbai, India, on Saturday, July 17, 2021.
Dhiraj Singh | Bloomberg | Getty Images
India’s digital funds app Paytm rose as a lot as 8% on Tuesday, rebounding from a heavy selloff that wiped off about $2.5 billion in market worth within the final three classes.
It comes after Indian billionaire Mukesh Ambani’s Jio Financial Services denied media experiences it was shopping for Paytm’s wallet business.
Paytm additionally dismissed the experiences as “speculative, baseless and factually incorrect.”
Shares of Paytm, listed as One 97 Communications on India’s National Stock Exchange, misplaced $2.47 billion in market worth amid the heavy selloff. The firm had a market cap of $3.35 billion as of Monday’s shut, in accordance with LSEG knowledge.
Paytm shares fell to document low territory on Monday, ending 10% decrease, after dropping 20% every day on Thursday and Friday. On Tuesday, the inventory rose as a lot as 8% earlier than paring again positive aspects.
The market rout got here after the Reserve Bank of India on Wednesday ordered Paytm Payments Bank to cease accepting recent deposits in its accounts or its digital wallet from March.
Hindustan Times reported Monday that Jio Financial, owned by Ambani’s conglomerate Reliance, would purchase Paytm’s wallet business. The report despatched shares of Jio Financial up as a lot as 16.5% on an intraday foundation yesterday.
Jio Financial issued an announcement to the alternate late Monday to verify it was not in talks to purchase Paytm’s digital wallet business.
“We make clear that the information merchandise is speculative and we now have not been in any negotiations on this regard,” the corporate mentioned.
Paytm added: “We haven’t been in any negotiations on this regard.”
Shares of Jio Financial had been 4.4% decrease on Tuesday.