Paytm Updates Shareholding Pattern; Retail Shareholding Increases By 221% As Foreign Portfolio Investment Halves

Fintech giant Paytm has seen significant shifts in its shareholding patterns with a major departure of foreign portfolio investors. 

Inc42 has reviewed Paytm’s regulatory filings with the stock exchanges.

According to the latest shareholding pattern for the quarter ending March 2022, the company has seen investment from institutional investors reduce from a cumulative 10.42% for the quarter ending December 2021 to 5.49% currently.

The number of shareholders has also reduced significantly; reaching 61 from the 147 institutional investors last quarter.

While the company has seen an Alternate Investment Fund join as a minor stakeholder, Paytm saw a drastic reduction in foreign portfolio investors (FPIs); the number of FPIs reached 54 currently from 141 the previous quarter.

However, Canada Pension Plan Investment Board, Paytm’s largest institutional investor, has raised its stake from 1.57% in December 2021 to 1.71% in March 2022.

While there was an apparent exodus of FPIs from the listed fintech, retail shareholders were bullish over the most recent quarter.

According to the filings, Paytm has seen the retail shareholding for individual share capital of up to INR 2 Lakhs go from 3.49% in December 2021 to 7.72% in March 2022, a 220.9% increase.

The confidence from the retail shareholders comes against the backdrop of Paytm’s shares dropping by as much as 75% from its offer price. Currently, the company’s shares are trading at around INR 650 apiece.

Paytm’s gross merchandise value (GMV) jumped 105% year-on-year to INR 1,65,333 Cr in the first two months of the fourth quarter of FY 2021-2022.

Further, its lending business scaled to 4.1 Mn loan disbursals during the first two months of the quarter (y-o-y growth of 449%), with about 2.2 Mn loans disbursed in February 2022 alone. This aggregates to a total loan value of INR 2,095 Cr (y-o-y growth of 366%), Paytm claimed in a regulatory filing today. 

It is to be noted here that the fintech giant got listed through an IPO at INR 2,150 per share in November 2021. Compared to its IPO valuation of INR 1.5 Lakh Cr at that time, the stock’s valuation is now just about INR 50,000 Cr. 

Paytm has lost nearly two-thirds of its initial value since listing, and its market capitalisation has shrunk from nearly three times as much during the IPO debut.

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