A restaurant promotes the use of the Paytm digital payment system in Mumbai, India, Saturday, July 17, 2021.
Dheeraj Singh | Bloomberg | Getty Images
Indian digital payments app Paytm rose as much as 8% on Tuesday, rebounding from a steep slide that wiped out about $2.5 billion in market capitalization over the past three sessions.
This comes after Indian billionaire Mukesh Ambani's Jio Financial Services denied media reports that it would acquire Paytm's wallet business.
Paytm also dismissed the report as “speculative, baseless and factually incorrect”.
Paytm shares, listed on the National Stock Exchange of India as One97 Communications, lost $2.47 billion in market capitalization in a steep decline. The company's market capitalization was $3.35 billion as of Monday's close, according to LSEG data.
After falling 20% on Thursday and Friday, Paytm shares fell to record lows on Monday, ending 10% lower. On Tuesday, the stock rose as much as 8% before paring its gains.
The market crash came after the Reserve Bank of India on Wednesday ordered Paytm Payments Bank to stop accepting new deposits into its accounts and digital wallets from March.
Hindustan Times reported on Monday that Jio Financial, owned by Mr. Ambani's conglomerate Reliance, will acquire Paytm's wallet business. The report pushed Jio Financial's stock price up up to 16.5% on an intraday basis yesterday.
Jio Financial issued a statement to the exchange late Monday confirming that it is not in talks to acquire Paytm's digital wallet business.
“The company clarifies that this news is speculative and that it has not entered into any negotiations in this regard,” the company said.
Paytm added: “We have not entered into any negotiations in this regard.”
Jio Financial stock fell 4.4% on Tuesday.
