Paytm's shareholding landscape undergoes significant changes

Significant institutional holding patterns have been observed in the latest update on Paytm's shareholding, released at the end of January.

While HSBC Mutual Fund and Quant Mutual Fund have opted for a complete exit from Paytm's shareholding, several mutual funds have entered the fray. Baroda BNP Paribas, Franklin Templeton Mutual Fund, JM Mutual Fund, Mirae Mutual Fund, Motilal Oswal Mutual Fund, Navi Mutual Fund, Nippon India Mutual Fund, and UTI Mutual Fund have all established positions within the company.

Union Mutual Fund, Mahindra Manulife Mutual Fund, SBI Mutual Fund, Zerodha Mutual Fund, Bandhan Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, and Groww Mutual Fund have witnessed marginal increases in their holdings.

In contrast, Kotak Mutual Fund has chosen to reduce its holding in Paytm.

The Paytm stock faced a downturn after January 31, following the RBI's imposition of stringent restrictions on Paytm Payments Bank Ltd. (PPBL) due to non-compliance issues and significant supervisory concerns.

Last week, the RBI extended the date of imposition of the ban by 15 days on key banking and wallet operations of Paytm Payments Bank, excluding nodal accounts. The RBI clarified that services for merchants accepting payments through a Paytm QR code, Paytm soundbox, or Paytm POS terminal will remain uninterrupted even after mid-March 2024, provided the linked account is with any other bank, except PPBL.

The Noida headquartered company which boasts a market capitalization of Rs 24665 crore has delivered negative returns of over 57% in the last six months.