Paytm is in exploratory talks with investors to sell its wallets business, news platform The Hindu Business Line reported on Monday.
The newspaper, citing its highly placed sources in the Noida-based fintech added that banking giant HDFC Bank and Reliance-owned Jio Financial Services could be the frontrunners to acquire the wallet segment of the company.
As per the various media reports, Vijay Shekhar Sharma, founder, and CEO of One97 Communications has been in talks with Jio Financial since last November but Talks with HDFC Bank started just ahead of the Reserve Bank of India stopping the banking arm of the fintech onboard new customers and activities post 29 February.
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The central bank has ordered Paytm Payments Bank Ltd (PPBL) to halt most of its business including taking further deposits, conducting credit transactions, and carrying out top-ups on any customer accounts, prepaid instruments, wallets, and cards for paying road tolls after February 29.
Jio Financial Limited's stock experienced an 8.53 per cent surge, reaching a new peak at Rs 275.40. Conversely, Paytm shares hit a 10 per cent lower circuit limit, witnessing a 43 per cent decline over three trading sessions. HDFC Bank Ltd shares remained relatively unchanged.
Shares of the fintech fell by another 10 per to Rs 438.35 -- its lowest trading permissible limit for the day -- on the BSE. It plummeted 9.99 per cent to hit its lower circuit limit of Rs 438.50 on the NSE. In three days, the stock has tumbled over 42 per cent, wiping out Rs 20,471.25 crore, from its market valuation.
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