Paytm shares were trapped around a 10% lower circuit limit, falling 43% in three trading days. Jio Financial Services Ltd (JFS) shares rose 8.53 percent in Monday trading after a media report said that HDFC Bank and Reliance Industries’ demerged financial services arm were among the frontrunners in acquiring One 97 Communications Ltd’s wallet business (Paytm). Following the development, the JFS stock gained 8.53 percent, reaching a new high of Rs 275.40. Paytm shares were trapped around a 10% lower circuit limit, having fallen 43% in three trading days. HDFC Bank Ltd’s shares were trading flat.

Jio Financial Services is a holding company that has a joint venture (JV) called Jio Payment Bank. Jio operates its financial services business through consumer-facing businesses such as Jio Insurance Broking (JIBL), Jio Payment Solutions (JPSL), and Jio Finance.

Earlier today, the Hindu BusinessLine reported high-level sources as saying Paytm is in exploratory negotiations with a few potential investors to sell the wallets company. According to the report, HDFC Bank and Jio Financial Services are among the front-runners for the acquisition.

JFS also submitted a proposal to continue on mutual fund activities with BlackRock Financial Management, which was considered for in-principle approval. Jio Financial and BlackRock intend to initially contribute $150 million apiece.

Paytm shares have been under pressure since the RBI restricted the activities of its payment bank. There were several rumors of the Enforcement Directorate (ED) looking into money laundering charges against the firm and its founder and CEO, which the fintech behemoth disputed. According to a previous Bloomberg story, the RBI was considering revoking Paytm Payments Bank’s license as early as next month.

Shares of beleaguered fintech One 97 Communications, or Paytm, plummeted another 10% on Monday to Rs 438.35 on the BSE as the regulatory crisis worsened with new claims of money laundering and an inquiry by the Directorate of Enforcement (ED) coming to light. In the previous three trading days, including today, the stock has lost 42.4% of its value, or Rs 20,500 crore in market capitalization.

Jio Financial Services shares rose 14% on Monday to a day’s high of Rs 288.75 on the BSE after a newspaper report indicated crisis-hit One 97 Communications is in discussions with Mukesh Ambani-owned NBFC and private sector lender HDFC Bank to sell its wallet business.

According to top fintech and banking industry officials familiar with the situation, HDFC Bank and Jio Financial are among the front-runners in acquiring Paytm’s wallet business.