A restaurant advertises the use of the Paytm digital payment system in Mumbai, India, on Saturday, July 17, 2021.
Dhiraj Singh | Bloomberg | fake images
Indian digital payments app Paytm rose as much as 8% on Tuesday, recovering from a sharp sell-off that wiped out around $2.5 billion in market value over the past three sessions.
It comes after Indian billionaire Mukesh Ambani jio financial services denied media reports that it was buying Paytm’s wallet business.
Paytm also dismissed the reports as “speculative, baseless and factually incorrect.”
Paytm shares, listed as One 97 Communications on the National Stock Exchange of India, lost $2.47 billion in market value amid the sharp sell-off. The company had a market capitalization of $3.35 billion as of Monday’s close, according to LSEG data.
Paytm shares fell to a record low on Monday, ending down 10%, after losing 20% each day on Thursday and Friday. On Tuesday, the stock rose as much as 8% before paring gains.
The market decline came after the Reserve Bank of India on Wednesday ordered Paytm Payments Bank to stop accepting new deposits into its accounts or digital wallet from March.
Hindustan Times reported on Monday that Jio Financial, owned by Ambani’s Reliance conglomerate, would acquire Paytm’s wallet business. The report sent Jio Financial shares up as much as 16.5% intraday yesterday.
Jio Financial issued a statement to the exchange on Monday evening to confirm that it was not in talks to buy Paytm’s digital wallet business.
“We clarify that the news is speculative and we have not been in any negotiations in this regard,” the company said.
Paytm added: “We have not entered into any negotiations in this regard.”
Jio Financial shares fell 4.4% on Tuesday.