Ahead of the RBI restrictions, MF industry’s shareholding in Paytm increased by 41% in January 2024: Fisdom

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One 97 Communications shares plunge 55 percent (From Jan 31 till date) on NSE and BSE. Moreover, following the announcement, major players like Jefferies and Macquarie also downgraded the stock rating. In a recent note, brokerage house Fisdom Research highlighted that before the recent decline since January 31, the MF industry’s shareholding in Paytm increased by 41 percent in January 2024 from December 2023.

As per the brokerage, in terms of share count, Nippon Mutual Fund, Mirae Mutual Fund, and Motilal Oswal Mutual Fund rank as the top three, holding the largest number of Paytm shares in their portfolios as of January 2024. Two AMCs, Baroda BNP Paribas, and Navi MF were the new entrants in Paytm in Jan’24 through actively managed funds. Also, Motilal Oswal MF, UTI MF, Franklin Templeton MF, JM MF, and Nippon India MF increased their exposure in Paytm the most in Janaury 2024.

Meanwhile, HSBC AMC completely exited from the stock in January ’24, from its actively managed funds. Quant Mutual Fund on the other hand reduced the exposure by 72.4 percent during the same period and Aditya Birla Sunlife MF has reduced the exposure by 10 percent, it added. Furthermore, SBI Mutual Fund, Edelweiss Mutual Fund, Kotak Mutual Fund, TATA Mutual Fund, ICICI Mutual Fund, Bandhan Mutual Fund, and Grow Mutual Fund were not actively exposed to Paytm, informed the brokerage.

Fisdom also pointed out that the number of schemes in Paytm's portfolio increased from 70 to 77 in January 2024. The Mutual Fund Industry's currently has a ₹3,384 crore exposure to Paytm. However, it also mentioned that 19 AMCs did not have any exposure in the stock in January 2024.