Domestic mutual funds have increased their stake in One97 Communications (Paytm) to 13.1%, up from approximately 11.2% in Q3 FY25—reflecting rising institutional confidence. This was driven primarily by increased holdings from Nippon India, Motilal Oswal, and Mirae Asset Mutual Funds, which cumulatively represent nearly one-third of the mutual fund holding. As of June, total mutual fund stake likely edged toward 13.8%, as filers and analysts suggest continued accumulation in Q4 .
📊 4 Implications of the Rising MF Stake
1️⃣ Institutional trust grows
Despite Paytm’s ~18% year-to-date stock decline, mutual funds increased their ownership from 11.2% to 13.1% sequentially—signaling bullishness on Paytm’s long-term prospects .
2️⃣ Leveraging strategic redeployment
Key fund houses, including Nippon India and Motilal Oswal, added ~0.4% and ~0.2% respectively, boosting combined mutual fund share to over 8.36 crore shares (~13.1%)
3️⃣ Offset of FPI weakness
While foreign portfolio investors trimmed stakes, mutual fund inflows cushioned against broader market repositioning . Overall institutional ownership rose ~2% sequentially to around 14% Business Standard
4️⃣ Calls volatility but hints value
Mint’s pricing snapshot shows mutual fund accumulation even as Paytm trades well below its IPO price (~₹810 vs ₹2,150), suggesting investors see opportunity amid short-term market volatility
🔭 What to Watch Next
- Q1 FY26 shareholding: Will mutual funds continue buying even as Paytm’s earnings recovery progresses?
- Flow dynamics: Rising AUM of equity MF schemes could translate to further stake-building.
- Macro triggers: Growth in Paytm’s payments GMV, loan disbursements, or profitability optimism may accelerate institutional accumulation.
- Regulatory developments: Any policy changes affecting fintech or digital credit could trigger rebalancing.
✅ Bottom Line
Mutual funds increasing stake in Paytm to 13.8% by June underscores growing institutional backing despite share-price pressure. This pattern suggests that long-term investors are capitalizing on the dip—signifying potential value play. Continued tracking of portfolio flows and Paytm’s performance metrics will be crucial for interpreting future stock moves.
