Paytm sees rise in domestic institutional holding by 2% to 14%, led by mutual funds increasing stake to 13%

ANI April 10, 2025 342 views

Paytm has witnessed a significant rise in domestic institutional ownership, with mutual funds playing a key role in this growth. Nippon India and Motilal Oswal Mutual Funds have been primary contributors to the increased stake. While foreign institutional investors showed a marginal decline, the overall institutional ownership remains robust at 69%. The data suggests sustained investor confidence in Paytm's business model and future potential.

"Steady institutional confidence in the company's long-term outlook" - Paytm Investor Relations
New Delhi, April 10: Domestic Institutional confidence in One 97 Communications Ltd. (Paytm) continued to build in the fourth quarter of financial year 2025 (Q4 FY25), with domestic mutual funds increasing their stake by 1.9 per cent, taking their overall shareholding to 13.1 per cent, according to the company's latest filing with the stock exchanges.

Key Points

1

Nippon India and Motilal Oswal lead mutual fund stake increase

2

Institutional ownership grows to 69%

3

Alternative Investment Funds expand shareholding

4

Foreign institutional participation slightly declines

The rise in domestic institutional interest was primarily driven by Nippon India Mutual Fund and Motilal Oswal Mutual Fund.

Nippon India increased its stake by 0.4 per cent to 2.8 per cent, while Motilal Oswal Mutual Fund added 0.2 per cent, reaching a 2.3 per cent shareholding in the company.

Overall institutional ownership -- including both domestic and foreign entities -- grew by approximately 1 per cent sequentially to 69 per cent.

The data also indicates increased activity from other domestic institutional categories. Insurance companies raised their participation, with five new entities added and their total holding reaching 2.8 million shares.

These additions reflect steady institutional confidence in the company's long-term outlook. Alternative Investment Funds (AIFs) also increased their total shareholding from 2.2 million to 2.8 million shares, with two new entities joining the cap table.

While foreign institutional participation saw a marginal decline -- a 0.8 per cent reduction in shareholding from 119 million to 115 million shares -- this is consistent with broader global market trends and portfolio rebalancing seen across emerging markets.

Notably, Amansa Capital increased its shareholding by 0.9 per cent to 1.3 per cent, or 8.5 million shares. The overall number of FPI entities continued to rise, with four new entrants in this category.

On the non-institutional front, retail investors marginally trimmed their positions, which is not uncommon during periods of market volatility.

Retail shareholding (less than Rs 2 lakh) declined from 11 per cent to 10.4 per cent, while high-ticket retail (above Rs 2 lakh) saw a slight dip from 2.9 per cent to 2.6 per cent. Director holdings remained stable at 9.3 per cent.

Reader Comments

R
Rahul P.
This is great news for Paytm investors! Mutual funds increasing their stake shows confidence in the company's turnaround story. I've been holding since IPO and this gives me hope 🚀
P
Priya K.
Interesting to see domestic institutions stepping up while FIIs are pulling back slightly. Shows Indian investors might understand the local fintech space better than foreign funds.
A
Amit S.
While the institutional numbers look positive, I'm concerned about retail investors exiting. The small dip might not seem like much, but it shows regular folks are still wary after RBI's actions earlier this year.
N
Neha M.
Motilal Oswal and Nippon India don't increase stakes without thorough research. This could be a sign Paytm has successfully navigated through its regulatory challenges. Time to reconsider my position maybe?
S
Sanjay D.
The numbers look promising but I'd like to see more details on Paytm's path to profitability. Institutional interest is good, but fundamentals matter more in the long run.
T
Tina R.
As a small investor, I find these institutional movements reassuring! Maybe I'll start a small SIP in Paytm through my mutual fund. The fintech space has so much potential in India 🇮🇳

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