The latest shareholding pattern of One 97 Communications, the parent company of Paytm, shows that the holding of domestic investors has increased in the fourth quarter of FY24 driven by mutual funds along with new FPIs buying the stock.
Mutual Funds have increased their stake in Paytm by 1.17% from 4.99% in the quarter ended December 2023 to 6.15% in the March 2024 quarter, led by investment from Mirae Mutual Fund and Nippon India Mutual Fund.
As a result domestic institutional investors (DII) witnessed an increase in stake to 6.86% from 6.06%. Retail investors’ shareholding also went up from 12.85% to 14.53% sequentially while Non-Resident Indians (NRIs) also saw an increase from 0.67% to 0.85%.
One 97 Communications has also witnessed a decline in its unified payments interface (UPI) market share, dropping to 9% in March, according to data available on NPCI. This marks its lowest level in the past four years.
Paytm is yet to release its March quarter earnings. However, the company is expected to see a decline in operating profitability after the Reserve Bank of India’s (RBI) ban on Paytm Payments Bank.
Brokerage firm Motilal Oswal estimates the value of disbursed loans to plunge 67% QoQ, as the company has suspended postpaid loans due to RBI concerns and put merchant loans on hold pending data on QR transition. Revenue from operations is also projected to decrease by 21% YoY, while contribution profit is estimated to fall by 15% YoY.
