Market Update: Jio Financial Services hits all-time high

Jio Financial Services share price: Jio Financial Services' shares zoomed over 13 per cent in Monday's trade (February 5) and hit an all-time high of Rs 295.7 apiece on the BSE. The stock rallied after reports suggested that Jio Financial Services is in talks to acquire Paytm's wallet business. As per the reports, HDFC Bank is another frontrunner to acquire the fintech wallet business.

At close, shares of Jio Financial Services traded 13.91 per cent, or Rs 35.3, higher at Rs 289.05 apiece. Meanwhile, its market capitalisation stood at Rs 1,83,641.68 crore.

What happened at Paytm?

The Reserve Bank of India (RBI) last week ordered Paytm Payments Bank Ltd (PPBL), a restricted bank that can take deposits but cannot lend, to not take any further deposits, conduct credit transactions, or carry out top-ups on any customers' accounts, prepaid instruments, wallets, or cards for paying road tolls after February 29.

Paytm wallet customers can use the money until their balance is exhausted. They cannot add money after February 29. And in case the RBI does not relent, top-ups for the Paytm wallet will stop, and transactions through it can no longer be carried out.

Following the development, Zee Business Managing Editor Anil Singhvi also suggested investors exit the stock even at a loss.

One relief for investors is that Paytm clarified on exchanges that no inquiry is underway against the fintech player or its promoters by the Enforcement Directorate (ED).

"Neither the company nor its founder and CEO are being investigated by the Enforcement Directorate regarding, inter alia, money laundering. In the past, certain merchants/users on our platforms have been subject to enquiries and on those occasions, we have always cooperated with the authorities..... we would like to set the record straight and deny any involvement in anti-money laundering activities. We have and continue to abide by Indian laws and take regulatory orders with utmost seriousness," Paytm said in its regulatory filing. 

READ MORE: Paytm shares hit the lower circuit again; Anil Singhvi suggests exiting the stock

Jio Financial Services share price: Past performance 

Over the last 30 days, shares of Jio Financial Services have gained 21 per cent against the Nifty 50's rise of over 1 per cent during the window.

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