1, March, 2024
HomeBusinessDomestic Retail Investors Bolster Stake in Paytm to 12.85% as Foreign Institutions Dominate

Domestic Retail Investors Bolster Stake in Paytm to 12.85% as Foreign Institutions Dominate

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Domestic retail investors have significantly increased their stake in Paytm to 12.85% in the third quarter of December 2023, marking a substantial rise from the 8.28% recorded in the previous quarter. Concurrently, domestic institutions, particularly mutual funds, have also raised their share to 6.06%, demonstrating growing confidence in the fintech giant.

Read Also | Paytm Adapts Loan Strategy, Cuts Volume of Low-Value Loans

Mirae Mutual Fund and Nippon India Mutual Fund, leading domestic mutual funds, have collectively increased their stake by 2.20% in the third quarter, now holding 4.99% of Paytm shares. Other domestic institutions, including Alternate Investment Funds (0.63%), Insurance companies (0.40%), and Provident Funds/Pension Funds (0.05%), maintain their positions.

Non-Resident Indians (NRIs) have also shown increased interest, raising their stake to 0.67% from 0.49%. Meanwhile, foreign institutions have become the majority shareholders, now holding 63.72% of Paytm, indicating a rise of 2.8% from the September quarter.

This shift in ownership is attributed to an increase in foreign direct investment (FDI) in Paytm, reaching 45.08%, along with adjustments by Foreign Portfolio Investors (FPIs) Category 1 and 2, resulting in a 2.76% reduction in their total share.

Noteworthy changes in individual stakes include Softbank via SVF India Holdings (Cayman) reducing its share from 8.34% to 6.46%, and Warren Buffet’s Berkshire Hathaway Inc (BH International Holdings) exiting Paytm after selling its 2.46% stake in December.

Founder Vijay Shekhar Sharma, through his overseas-owned entity Resilient Asset Management, purchased a 10.30% stake, altering the shareholder landscape. Post this deal, Sharma’s Resilient now holds a 10.29% stake, while Antfin stands at 9.89%, ceasing to be the largest shareholder. The remaining shares are held by SAIF III Mauritius Company (10.83%) and SAIF Partners India IV Limited (4.60%), with the founder’s stake remaining at 9.11%.

In its financial report, Paytm’s parent company, One97 Communications, showed positive results with a consolidated revenue of Rs 2,519 crore, marking a 32% increase for the second quarter of September 2023.

Read Also | Paytm’s ‘Guaranteed Seat Assistance’: Ensuring Confirmed Train Bookings – Here’s How

Despite losses at Rs 292 crore, reduced from Rs 571 crore in the same quarter last year, the stock of Paytm closed 1.11% higher at Rs 692.45 apiece on NSE.

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