Paytm hits a 52-week low and recovers after denying reports of selling its wallet business
On Monday, One 97 Communications Ltd reportedly denied reports that it was acquiring Paytm wallet business days after the Reserve Bank of India (RBI) asked the companys to comply with KYC norms.
PayTm Hits a 52-week Low: The stock of One 97 Communications Ltd, the parent company of fintech firm Paytm hit a 52-week low on BSE on Tuesday (February 6, 2024) after the company denied that it was selling its Paytm wallet business and Jio Financials also denied that it was purchasing it.
The stock of Paytm hit a 52-week low of Rs 395.50 in morning deals on Tuesday.
However, it rose by 4.15 per cent, or Rs 18.20, at Rs 456.55 at 11:58 am.
What Paym says
On Tuesday, One 97 Communications Ltd denied reports that it was acquiring Paytm wallet business days after the Reserve Bank of India (RBI) asked the company's to comply with KYC norms.
"With reference to the captioned subject, we clarify that the abovementioned news item is speculative, baseless and factually incorrect. We have not been in any negotiations in this regard. We have been informed by Paytm Payments Bank Limited, our associate company, that they also have not been in any negotiations in this regard.
What Jio Financial says
Meanwhile, Jio Financials also said that it was not acquiring the PayTm wallet business and the news was speculative.
"With reference to the captioned subject, we clarify that the news item is speculative and we have not been in any negotiations in this regard. We have always made and will continue to make disclosures in compliance with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," Jio Financials said in a statement to bourses.
ED probes PAYTM, PAYTM Payment Bank: Source
Meanwhile, Reuters reported that the Enforcement Directorate (ED) has started investigating Paytm and Paytm Payment Bank under FEMA rules.
However, Paytm has outrightly rejected news related to FEMA violation.
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