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    Paytm Stock Severely hurting other FPIs and Canada Pension Fund


    Finance Outlook India Team | Friday, 02 February 2024

    As of December 31, major institutional investors in One 97 Communications Ltd (Paytm) included the Canada Pension Plan Investment Board, BNP Paribas Arbitrage, Mirae Mutual Funds, and Nippon Mutual Funds, collectively holding more than 1% of the falling stock. If these funds were still holding their Paytm interests, their holding values would have dropped by 36% as the stock fell on earnings downgrades after the RBI placed limits on Paytm's payment bank.

    Although Vijay Shekhar Sharma personally owned 9.11% of Paytm at the end of the December quarter, data indicated that the Canada Pension Plan Investment Board held 1.77 percent of Paytm at the end of the third quarter, or 1,12,12,232 shares. As of the December quarter, Nippon Mutual Funds held 66,35,828 shares, or 1.05 percent, Bnp Paribas Arbitrage held 84,16,807 shares, or 1.33 percent, and Mirae Mutual Funds held 1,59,03,720 shares, or 2.51 percent.

    12.85% of the shareholding is held by small retail investors, defined as those with less than Rs 2 lakh worth of Paytm shares. A total of 8,15,47,756 Paytm shares were held by them.

    Paytm shares fell 34.99% from their January 31 closing price of Rs 761 to a low of Rs 487.05 on Friday. The share price has already dropped 51% from its peak levels of a year ago. Numerous brokerages have lowered their target prices for the stock to as low as Rs 500, claiming that the Vijay Shekhar Sharma-led company has difficult times ahead due to ongoing doubt over its long-term profitability and business plan.

    A total of 45.08 percent of FDI was invested in the stock, with 451 FPIs, including the Canada Pension Plan Investment Board, holding a 17.69 percent position in Paytm. A total of twenty-three mutual funds owned 4.99 percent of Paytm. According to research, six insurance companies owned just 0.40 percent of Paytm.

    At the end of the December quarter, Vijay Shekhar Sharma owned a 9.11% interest in Paytm. At the end of the third quarter, the Canada Pension Plan Investment Board held 1,12,12,232 shares, or 1.77 percent of the Paytm equity.

     



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