Mutual Funds Increase Stake In Paytm In March Quarter, FII Holding Declines

RBI’s Clampdown On PPBL Not The Biggest Setback Faced By Paytm: Vijay Shekhar Sharma

SUMMARY

Domestic mutual funds increased their stake in Paytm to 6.15% at the end of March quarter from 4.99% at the end of the preceding December quarter

Overall, the foreign institutional investors’ stakeholding in Paytm declined to 60.41% at the end of the March quarter from 63.72% at the end of the December quarter

A few other FIIs, including Marshall Wallace and Morgan Stanley, have been increasing their stakeholding in the company

Amid the ongoing regulatory turmoil at fintech major Paytm, Indian mutual funds increased their shareholding in the Vijay Shekhar Sharma-led company during the March quarter of the financial year 2023-24 (FY24).

As per the shareholding data available with the BSE, domestic mutual funds increased their stake in Paytm to 6.15% at the end of March quarter (Q4) from 4.99% at the end of the preceding December quarter (Q3).

Mirae Mutual Funds, which held 1.59 Cr shares or a 2.51% stake in Paytm at the end of Q3 FY24, increased its shareholding in the company to 2.39 Cr shares or a 3.76% stake at the end of the March quarter.

On the other hand, Nippon Mutual Funds increased its stake to 1.66% at the end of the March quarter from 1.05% at the end of the December quarter of 2024.

It is pertinent to note that the mutual funds increased their stake in Paytm amid a wider sell-off by foreign institutional investors (FIIs) in the Indian equities market over the last few months. In January, BNP Paribas Arbitrage and Societe Generale offloaded their stakes in Paytm.

While BNP Paribas Arbitrage offloaded 42.15 Lakh shares of Paytm, Societe Generale sold 10.6 Lakh shares of the company.

However, a few other FIIs, including Marshall Wallace and Morgan Stanley, have been increasing their stakeholding in Paytm.

The Reserve Bank of India (RBI) notified restrictions on most banking operations of Paytm Payments Bank on January 31, which resulted in a sharp decline in Paytm’s share price.

Despite this, Morgan Stanley Asia (Singapore) Pte. – ODI bought 50 Lakh shares of Paytm worth INR 243.6 Cr in February this year in a bulk deal.

Overall, the foreign institutional investors’ stakeholding in Paytm declined to 60.41% at the end of the March quarter from 63.72% at the end of the December quarter.

Following the RBI’s action on Paytm Payments Bank, Paytm founder and CEO Sharma stepped down from the payments bank’s board. The bank also reconstituted its board.

Earlier this month, Sharma said he or anyone else from One97 Communications, the parent of Paytm, has no connection with Paytm Payments Bank. He said the payments bank’s board is independent and capable of addressing regulatory concerns.

Shares of Paytm have slumped over 50% since RBI’s action on Paytm Payments Bank. The company’s shares ended Wednesday’s (April 25) trading session 0.95% lower at INR 379.05 on the BSE.