Retail investor stake in Paytm more than doubled

Paytm owner One97 Communications released a shareholder update Thursday that showed retail shareholders more than doubled their stake in the company. The Canada Pension Plan Investment Board (CPPIB) also increased its stake in Paytm from 1.57% to 1.71% in the quarter ended March 2022, according to regulatory filing.

Foreign portfolio investor ownership in the company more than halved to 4.42% in the March 2022 quarter from 9.36% in the December 2021 quarter.

The updated shareholding chart shows retail investors‘ shares in the company grew to 5,00,42,638 in the March 2022 quarter, representing 7.72% of the stake from 2,26,52,322 shares (3.49%) during the December 2021 quarter.

In April, major mutual fund companies and asset management companies that purchased new shares of One97 Communications included SBI Mutual Fund, ICICI Prudential MF, LIC Mutual Fund, IDBI Mutual Fund, IDFC Mutual Fund, DSP BlackRock MF, Edelweiss MF, L&T Mutual Fund, Nippon India MF and UTI Mutual Fund.

In line with the global rout of fintech stocks seen in big tech companies, Paytm has also seen some foreign investors leave the company’s shareholding.

Paytm Founder and CEO Vijay Shekhar Sharma had recently expressed confidence that the company would achieve operating breakeven in EBITDA (earnings before interest, taxes, depreciation and amortization) within the next six quarters.

The company launched its initial public offering (IPO) late last year with an issue price of Rs 2,150 per share. However, the certificate has since taken a hit on the stock exchanges and even hit an all-time low of Rs 520 each.

Earlier this month, Sharma said shares of Paytm fell significantly due to volatile market conditions for high-growth stocks.

Paytm shares closed Thursday at Rs 641.25 each on BSE, up 0.26% from its previous close.

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