Motilal Oswal Mutual Fund has raised its holdings in One97 Communications Ltd, the parent company of Paytm, to 5.15%, following a substantial acquisition of shares that broadened its exposure to the fintech major.
Details of the Investment
- The fund purchased 26.31 lakh shares via open-market transactions on August 11, 2024, increasing its stake by 0.41%.
- Post-acquisition, its total shareholding stands at approximately 3.29 crore shares, crossing the 5% threshold required for regulatory disclosure under SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Regulations, 2011
Broad-Based Fund Participation
The acquisition was spread across more than 20 Motilal Oswal schemes, including the Nifty Midcap 100 ETF, Focused Fund, Midcap Fund, Flexi Cap Fund, ELSS Tax Saver Fund, Balanced Advantage Fund, and multiple index ETFs.
Market Impact & Paytm’s Turnaround
- Following the stake increase, Paytm’s share price surged, hitting a fresh 52-week high of ₹1,238.([turn0search2], [turn0search3])
- The price jump comes on the back of a strong Q1 FY26 earnings report, showing a turnaround with a net profit of ₹122.5 crore and 28% YoY revenue growth to ₹1,917 crore.
Key Highlights at a Glance
| Aspect | Detail |
|---|---|
| Watch Threshold Crossed | Stake now at 5.15%, up from 4.75% |
| Shares Acquired | 26.31 lakh, across 20+ mutual fund schemes |
| Regulatory Action | Mandatory disclosure under SEBI SAST rules |
| Market Reaction | Paytm hits ₹1,238, a 52-week high |
| Q1 FY26 Performance | Revenue ₹1,917 Cr (↑28% YoY), Profit ₹122.5 Cr |
Final Thoughts
Motilal Oswal Mutual Fund’s move to raise its stake above the 5% threshold signals renewed investor confidence in Paytm’s resurgence. With the company delivering a strong financial turnaround and gaining traction in digital finance, this investment highlights the growing appetite for exposure to India’s rebounding fintech story.
