Mutual funds raise stake in Paytm during Q2FY25; stock surges 70% in July-Sept quarter

During the second quarter of FY25 (Q2FY25), mutual funds increased their stake by 15 per cent in One97 Communications, the parent company of Paytm, reflecting growing institutional confidence in the digital payments company. The period between July and September saw a notable shift, as mutual funds ramped up their holdings with the stock delivering an impressive 70 per cent return.

At the end of Q1FY25 (June 30, 2024), Paytm's share price was ₹402.2. Meanwhile, at the end of Q2FY25 (September 30, 2024), it closed at ₹688.35, as per BSE analytics, indicating a return of around 71 percent during the period.

During the first quarter (Q1 FY25), mutual funds held around 4.32 crore shares of Paytm, accounting for 6.80 per cent of the company’s total shareholding. However, by the end of the second quarter (Q2 FY25), this number surged to approximately 5 crore shares, raising their total stake to 7.86 per cent. This increase in shareholding highlights the growing belief among institutional investors in Paytm's long-term growth potential.

Paytm share price history

Paytm share price was trading in the red, down 0.57 per cent, at ₹720 on October 14, at 11:29 am, on BSE. The Vijay Shekhar Sharma-led company enjoys a market capitalisation of ₹45,838 crore. Paytm's share price last hit its 52-week high of ₹998.30 on October 20, 2023.

Breakdown of mutual funds holdings in Paytm

Leading the increase in mutual fund holdings, Nippon Mutual Funds significantly raised its stake in Paytm. The number of shares held by Nippon increased from around 1.11 crore in Q1 to 1.44 crore in Q2. This resulted in an increase in its shareholding percentage from 1.76 per cent in Q1 to 2.27 per cent in Q2.

Similarly, Mirae Mutual Funds also raised its holdings, with the number of shares rising from around 2.29 crore in Q1 to 2.85 crore in Q2. Consequently, Mirae's shareholding percentage grew from 3.92 per cent in Q1 to 4.49 per cent in Q2.

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