Motilal Oswal Mutual Fund has increased its stake in One 97 Communications Ltd, Paytm's parent company, to more than 5%. Motilal Oswal Asset Management Company Limited managed multiple schemes that were used to make the acquisition.
On August 11, 2024, the fund house purchased an additional 26.31 lakh shares, or 0.41% of total equity, in open market transactions. Following the acquisition, its total shareholding in One 97 Communications increased to 3.29 crore shares, representing 5.15% of the company's total equity capital.
Key Highlights
- Motilal Oswal AMC raises stake in Paytm parent One97 Communications to 5.15%, acquiring 26.31 lakh shares.
- This pushes the mutual fund above the 5% SAST disclosure threshold, signaling renewed investor confidence in fintech.
Prior to this transaction, Motilal Oswal Mutual Fund owned 3.02 crore shares, representing a 4.75% stake. With this additional purchase, the mutual fund has surpassed the critical 5% disclosure threshold under SEBI's Substantial Acquisition of Shares and Takeovers (SAST) Regulations, 2011.
Numerous Motilal Oswal mutual fund schemes were included in the acquisition, including the Motilal Oswal Nifty Midcap 100 ETF, Motilal Oswal Focused Fund, Motilal Oswal Midcap Fund, Motilal Oswal Flexi Cap Fund, Motilal Oswal ELSS Tax Saver Fund, Motilal Oswal Balanced Advantage Fund, Motilal Oswal Nifty Midcap 150 Index Fund, Motilal Oswal Nifty 500 Index Fund, and more.
Even though Paytm is still navigating a difficult regulatory and competitive environment, the acquisition coincides with a resurgence of investor interest in fintech and digital businesses.
Also Read: Paytm Payments Gets RBI Approval to Function as Online Payment Aggregator
Q1 Earnings
In the first quarter of FY26, the company reported a consolidated net profit of ₹122.5 crore, indicating a significant improvement in performance. This was a significant improvement from the previous year's net loss of ₹839 crore during the same time period.
The company's operating revenue increased by 28% year on year to ₹1,917 crore, from ₹1,502 crore in Q1 FY25. In Q4FY25, revenue was ₹1,911 crore, despite a net loss of ₹540 crore, indicating a 0.3 percent sequential growth rate.
The company stated that the revenue growth was driven by an increase in subscription-based merchants, higher Gross Merchandise Value (GMV), and higher income from financial services distribution.
The company's operating EBITDA was ₹72 crore, with a margin of 4%. Profit after tax (PAT) was ₹123 crore. According to the company's exchange filing, the turnaround was driven by AI-led operational efficiencies, a disciplined cost management approach, and increased other income.
