Buy the fear! Mutual funds, FPIs hiked stake in Paytm in troublesome March quarter
mutual funds and foreign portfolio investors (FPIs) raised stakes in the fintech firm. March quarter shareholding pattern shows that MFs raised their stake in Paytm by 117 bps to 6.15% in Q4, led by investment from Mirae Mutual Fund and Nippon India Mutual Fund.
As a result, domestic institutional investors witnessed an increase in stake by 79 bps from 6.06% to 6.86%. FPIs increased their stake in Paytm by 200 bps to 20.64% during the quarter.
Retail investor's shareholding went up by 168 bps from 12.85% to 14.53% sequentially while Non-Resident Indians (NRIs) also saw an increase from 0.67% to 0.85%.
The Foreign Direct Investment (FDI) shareholding in Paytm fell 500 bps to 60% as compared to 66% in the last quarter, primarily due to a stake sale by SoftBank. The shareholding by SVF India Holdings (Cayman) Limited (SoftBank) has decreased by 5% from 6.46% to 1.40% in Q4FY24.
Also read | BofA resumes coverage on Paytm with 'underperform' rating
The company is yet to release its March quarter earnings. In the third quarter of the fiscal, Paytm’s revenue from operations saw a growth of 38% YoY to Rs 2,850 crore, and its EBITDA before ESOP stood at Rs 219 crore as compared to Rs 153 crore in Q2FY24 (excluding UPI incentives). The company’s PAT improved by Rs 170 crore YoY to Rs 222 crore.
During the March quarter, shares of Paytm fell 36.6%. The stock has been under stress ever since the RBI issued an order asking Paytm Payments Bank to stop new credit and deposit operations, top-ups, fund transfers, and other
