In the June quarter of FY25, Indian mutual funds increased their investment in the fintech company Paytm, while foreign institutional investors (FIIs) reduced their stakes.
According to the Bombay Stock Exchange (BSE), domestic mutual funds’ ownership in Paytm grew to 6.8% by the end of June, up from 6.15% at the end of March FY24. This increase was mainly due to more investments from Mirae Mutual Fund and Nippon India Mutual Fund. Nippon’s share rose from 1.66% to 1.76%, and Mirae’s share went up from 3.76% to 3.92%.
Earlier this year, despite regulatory issues when the Reserve Bank of India imposed restrictions on Paytm Payments Bank, domestic mutual funds increased their stake in Paytm from 4.99% in December to 6.15% by March. However, the increase in Q1 FY25 was smaller.
Indian retail investors also increased their investment in Paytm, reaching 16.56% by the end of June, compared to 15.32% in March. Notable investor Akash Bhanshali held a 1.21% stake at the end of June.
Non-Resident Indians (NRIs) slightly decreased their holdings, from 0.85% in March to 0.81% in June. Overall, domestic institutional investors (DIIs) increased their stake from 6.86% in March to 7.15% in June.
Due to significant selling by FIIs in April and May, related to uncertainties around the Lok Sabha elections, foreign direct investment (FDI) in Paytm dropped by 200 basis points in the June quarter. FDI fell to 37.77% in June from 39.77% in Q4 FY24. SoftBank’s SVF India Holdings (Cayman) Limited now holds less than 1% in the company.
Foreign portfolio investors (FPIs) also reduced their stake from 20.64% in March to 20.48% in Q1 FY25. Goldman Sachs (Singapore) Pte’s stake fell below 1% after selling 44.2 lakh shares worth INR 183.4 crore in a bulk deal last month. However, Treeline and UBS Principal Capital Asia increased their holdings to over 1% during the same period.
After significant selling pressure since February, Paytm’s stock rebounded in June, gaining 16% in the June quarter and closing at INR 467.25 on the BSE.
Paytm is scheduled to report its June quarter earnings on July 19. In Q4 FY24, the company’s net loss tripled year-on-year to INR 550.5 crore, with operating revenue decreasing by 2.9% to INR 2,267.10 crore
