In a quarter marked by the Reserve Bank of India's (RBI) prohibition on Paytm Payments Bank Ltd (Paytm) services, foreign portfolio investors (FPIs) and mutual funds (MFs) increased their investments in the Vijay Shekhar Sharma-led company One 97 Communications Ltd (Paytm) despite the stock experiencing a sharp decline of 37% during this past quarter, according to data compiled from the BSE.
According to data, domestic funds increased their ownership in Paytm by 1.17 percentage points, or 6.15 percent, in the March quarter compared to 4.99 percent in the December quarter. Mirae Mutual Fund and Nippon India Mutual Fund were among the investors.
Regarding FPIs, their ownership in the firm increased by 2% to 20.64 percent at the end of the March quarter from 18.64 percent at the end of the December quarter.
After the SoftBank share sale, the FPI holding in the bank decreased by 5.31 percentage points, from 45.08 percent to 39.77 percent. As of March 31, SVF India Holdings (Cayman) (SoftBank) held 1.4% of the equity, down from 6.4% at the end of the December quarter.
Retail investors with shares worth up to Rs 2 lakh now hold 14.53 percent of Paytm, up 1.68 percentage points from 12.85 percent the previous time around.
A net loss of Rs 469.30 crore is anticipated by brokerage Motilal Oswal for Paytm for the March quarter, as the RBI's ban on Paytm Payments Bank (PPBL) has a negative impact on operating profitability.
The National Payments Corporation of India (NPCI) website recently published data showing the company's market share fell to 9% in March from 11% in February. The prominent fintech company situated in Noida handled over 1.2 billion UPI transactions in March, a decrease from 1.3 billion in February and 1.4 billion in January.
