scorecardresearchPaytm: Retail investors continue to lap up shares; Stake more than doubles in Q4

Paytm: Retail investors continue to lap up shares; Stake more than doubles in Q4

Updated: 22 Apr 2022, 11:06 AM IST
Mutual funds bought Paytm shares as part of their 'Top 10 New Additions' for the month.
Paytm, made an initial public offer (IPO) of Rs18,300 crore in November 2021.

Paytm, made an initial public offer (IPO) of Rs18,300 crore in November 2021.

Retail investors increased their investment in Paytm to 7.72 per cent, compared to 3.49 per cent in Q4, the latest shareholding pattern on the BSE showed on Thursday.

This is after the company's shares fell to 520, a 52-week low, from its peak of 1960.

Paytm share price chart since its IPO

The company’s filings show that anchor investor Canada Pension Plan Investment Board (CPPIB) increased its stake from 1.57 percent to 1.71 percent.

Meanwhile, FPI's shareholding decreased from 9.36 per cent in the December quarter to 4.42 per cent in the March quarter.

The company has released the shareholding for Q4FY22. Reports show that even in April, top mutual fund houses and asset management companies (AMC) in the country bought new shares of Paytm parent company One97 Communications Limited (OCL).

According to a monthly mutual fund report by IDBI Capital, the top 10 mutual fund investment companies have bought shares of Paytm as part of their ‘Top 10 New Additions’ for the month.

Earlier this month, Paytm founder and CEO Vijay Shekhar Sharma stated that the company will achieve operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) breakeven in the next six quarters.

Paytm saw its revenue increase 89 per cent to 1,456 crore on a year-on-year basis, whereas its net loss widened by 45 per cent to 778 crore in the December quarter.

Early this month, Sharma had said that the shares of Paytm declined significantly due to volatile market conditions for high growth stocks.

ICICI Securities, on the other hand, maintained a 'BUY' rating for Paytm and revised their target price to 1,285 (earlier 1,352). The brokerage estimates that Paytm's consumer base will grow by 10% in FY23E and it forecasts that monthly transacting users will increase at a > 25% run-rate.

It also said that the company has to increase its efforts to enhance engagement with the existing user base to offset the adverse impact of the embargo on new users.

"We expect moderation in the onboarding of new users and the adverse impact on incremental payment revenue (as wallets are a key monetizable payment instrument")," it added.

Paytm shares closed at 641.25 per share on the BSE on Thursday, up 0.26 percent from the previous close.

An average of 9 analysts polled by MintGenie have a 'buy' call on the stock.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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First Published: 22 Apr 2022, 11:03 AM IST