In a significant development, Paytm, a fintech giant, has witnessed a remarkable surge in the shareholding of domestic investors including mutual funds and retail shareholders in the third quarter of the fiscal year. The company filed its shareholding pattern for Q3FY24 with the stock exchanges, informing the same.
Domestic Mutual Funds have notably increased their ownership by 2.20%, climbing from 2.79% in Q2FY24 to a robust 4.99% in Q3FY24. The Q3 surge is led by strategic investments from prominent players such as Mirae Mutual Fund and Nippon India Mutual Fund.
Notably, this surge in Mutual Funds’ interest has propelled domestic institutional investors, reflecting a substantial rise in stake from 4.06% to 6.06%, marking a noteworthy 2% increase.
On the retail front, the enthusiasm for Paytm among individual investors is palpable, with retail shareholding soaring impressively by over 4%, reaching 12.85% from 8.28% sequentially. Simultaneously, Non-Resident Indians (NRIs) have also shown increased interest, witnessing a surge from 0.49% to 0.67%.
While foreign portfolio investors (FPIs) continue to hold a significant share at 18%, FPI Category II experienced a marginal decline of 0.45% sequentially. In the FDI category, SVF India Holdings (Cayman) reduced its stake from 8.34% to 6.46%, while BH International Holdings sold its 2.46% stake.
Despite these shifts in shareholding patterns, Paytm maintains a robust growth trajectory across its core businesses, with consistent positive performance. Global and domestic brokerage firms, including CLSA, Jefferies, Bernstein, Axis Capital, and Motilal Oswal Financial Services, anticipate strong Q3FY24 results for Paytm, projecting healthy growth in total revenue, contribution margin, GMV, and improved adjusted EBITDA.
In the second quarter, Paytm’s revenues recorded an impressive 32% YoY growth, reaching ₹2,519 Crore. This growth was fueled by higher subscription revenue, payments business revenue, and increased loan disbursals. Additionally, the contribution profit experienced a substantial 69% YoY jump to ₹1,426 Crore, with a contribution margin soaring to 57% from 44% the previous year.
