Paytm’s share price has plunged more than 40% in the last three months, but retail investors and foreign portfolio investors (FPIs) have increased their interest in the fintech giant.
The latest share pattern of One 97 Communications, the parent company of Paytm, shows that the holding by domestic investors increased in the fourth quarter of FY24 driven by mutual funds along with new FPIs buying the shares.
Mutual Funds increased their stake in Paytm by 1.17% from 4.99% in the quarter ended December 2023 to 6.15% in the quarter ended March 2024, led by investment from Mirae Mutual Fund and Nippon India Mutual Fund. As a result domestic institutional investors (DII) witnessed an increase in investment to 6.86% from 6.06%.
Read also: Paytm Payments Bank CEO Surinder Chawla resigns
The shareholding of retail investors also went up from 12.85% to 14.53% sequentially while Non-Resident Indians (NRIs) also saw an increase from 0.67% to 0.85%.
Meanwhile, FPI’s equity stake in Paytm rose by 2.49% to 20.19% in Q4FY24 as new investors including Tiger Pacific Capital, Societe Generale and Norway’s Government Pension Fund Global made inroads into the stock.
In the FPI category, Tiger Pacific Master Fund bought 65,79,135 Paytm shares, aggregating to 1.04% stake in the last quarter and Goldman Sachs (Singapore) Pte bought 84,01,067 Paytm shares, or 1.32% stake. .
Societe Generale bought 89,01,090 shares or 1.40 shares, Morgan Stanley Asia (Singapore) Pte bought 1,00,95,350 shares or 1.59%, and Government Pension Fund Global of Norway bought 85,03,220 shares or 1.34% holding in Paytm.
Read also: Paytm’s Vijay Shekhar Sharma uses ChatGPT to verify negative health claims about cooking oil, here’s what he found
Meanwhile, BNP Paribas Arbitrage and Canada Pension Plan Investment Board exited Paytm in the last quarter.
The Foreign Direct Investment (FDI) shareholding in Paytm fell to 60% compared to 66% in the December quarter. The shareholding of SVF India Holdings (Cayman) Limited (SoftBank) decreased from 6.46% to 1.40% in Q4FY24.
One 97 Communications also witnessed a decline in its unified payment interface (UPI) market share, falling to 9% in March, according to data available on NPCI. This marks its lowest level in the last four years.
Read here: Paytm share in UPI market falls to 9% in March, lowest in last 4 years: NPCI data
Paytm is yet to release its March quarter earnings. However, the company expects a decline in operating profit following the Reserve Bank of India’s (RBI) ban on Paytm Payments Bank.
Brokerage firm Motilal Oswal estimates the value of disbursed loans to plunge 67% QoQ as the company suspended overdue loans due to RBI concerns and put merchant loans on hold for QR transition data. Income from operations is also projected to decline by 21% YoY, while contributory profit is estimated to fall by 15% YoY.
The brokerage house has a ‘Neutral’ rating on Paytm shares with a target price of ₹475 each.
At 10:00 AM, Paytm’s share price was trading 1.63% lower ₹397.70 per one on the BSE.
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Published: 10 Apr 2024, 10:05 IST