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Domestic institutions continued to buy into Paytm, driven by strong Q2 2024-25 results and a clear path toward EBITDA before ESOP breakeven by Q4.
Paytm's latest shareholding filing revealed a strong surge in institutional confidence, with total institutional ownership rising by 4 per cent to 68 per cent in Q3 2024-25. This growth reflected the increasing trust in Paytm's strong financial trajectory and leadership in India's digital payments ecosystem. Domestic mutual funds were key contributors to this growth, increasing their shareholding by 3.3 per cent to 11.2 per cent demonstrating sustained interest from domestic institutions. Among the notable changes, Motilal Oswal Mutual Fund raised its stake to 2.1 per cent, signaling its confidence in Paytm's growth potential. Mirae Asset, while trimming its holding slightly, continues to hold a substantial 4.2 per cent stake, reaffirming institutional trust in the company's robust fundamentals. Additionally, Nippon Mutual Fund's shareholding remained stable at 2 per cent, further underscoring consistent support from domestic institutional investors. Foreign Portfolio Investors (FPIs) further bolstered institutional ownership, with their shareholding increasing by 0.7 per cent during the quarter. The number of FPIs holding Paytm shares grew by 20 entities, reaching a total of 237. FPI increased their holding from 115 million to 119 million shares, registering a 0.72 per cent growth to 19 per cent, further underlining global institutional interest in Paytm's business model. As highlighted by Bernstein, Paytm leads the transition in India's payments ecosystem from disruption to monetization. The company's innovative strategies, including device-based monetization and its increasing focus on credit-driven payment solutions, position it well for sustainable profitability. With a clear roadmap to EBITDA breakeven by Q4 2024-25 and strong institutional backing, Paytm continues to strengthen its leadership in India's rapidly evolving fintech landscape. (ANI)
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