Institutional Confidence in Paytm Soars Amid Q4 Stake Increases

Q4 FY25 sees a rise in domestic institutional confidence in Paytm, with mutual funds and insurance companies increasing their stakes. Domestic and foreign institutional ownership grows to 69%, despite a slight retreat by foreign participants. Retail investors show a marginal decline in shares during market volatility.

In a boost of confidence for One 97 Communications Ltd., better known as Paytm, domestic mutual funds raised their stake by 1.9% in the fourth quarter of fiscal year 2025, bringing their total to 13.1%. This rise was predominantly driven by Nippon India Mutual Fund and Motilal Oswal Mutual Fund.

Nippon India increased its holdings by 0.4% to 2.8%, while Motilal Oswal added 0.2%, reaching 2.3%. Overall, institutional ownership, comprising both domestic and foreign investors, climbed roughly 1% to attain 69%.

Insurance companies also boosted their involvement, adding five new entities and accumulating a total of 2.8 million shares, illustrating a robust belief in Paytm's long-term prospects. Alternative Investment Funds followed suit, elevating their holdings to 2.8 million shares.

Foreign institutional participation, however, experienced a slight decline with a 0.8% reduction, aligning with global market trends. Notable was Amansa Capital's increase by 0.9%, attaining 1.3% or 8.5 million shares, alongside four new entrants in the Foreign Portfolio Investors category.

Meanwhile, retail investors reduced their stakes marginally amid market fluctuations, with holdings dropping to 10.4% for investments under Rs 2 lakh, and to 2.6% for those above. Director holdings were steady, remaining at 9.3%.

(With inputs from agencies.)