Shares of digital payments major Paytm shares of the parent company One97 Communications Ltd. surged over 1.5% in Tuesday’s trade, touching a new 52-week high of ₹1,247.60 on the NSE. The rally comes on the back of Motilal Oswal Mutual Fund increasing its stake in the company beyond the key 5% mark.
Mutual Fund’s Big Bet
On August 11, Motilal Oswal Mutual Fund purchased 26.31 lakh additional shares of Paytm through a block deal, amounting to about 0.41% of the company’s equity. With this, the fund house’s total holding rose to 3.29 crore shares, or 5.15% of Paytm’s equity, up from 4.75% earlier. The move pushed the fund’s stake above the critical disclosure threshold mandated by SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Regulations, 2011.
The purchases were spread across multiple schemes, including Motilal Oswal Midcap 100 ETF, Focused Fund, Midcap Fund, Flexi Cap Fund, ELSS Tax Saver Fund, Balanced Advantage Fund, and index funds tracking the Nifty Midcap 150 and Nifty 500.
Paytm Shares: Strong Market Performance
Paytm’s stock has been on a remarkable run. In the past one year, the counter has delivered 117% returns, effectively doubling investors’ wealth. Over the past month alone, the stock has jumped more than 22%, reflecting renewed investor appetite for fintech and digital ecosystem companies.
Financial Turnaround
The surge is supported by a turnaround in the company’s financial performance. In the June quarter, Paytm reported a net profit of ₹122.5 crore, compared to a loss of ₹839 crore in the same quarter last year. Operating revenue rose 28% year-on-year to ₹1,917 crore, driven by higher subscription-based merchant additions, growth in Gross Merchandise Value (GMV), and improved earnings from financial services distribution.
Broader Context
The latest developments arrive when investor confidence in Indian fintech companies is on the rise, despite regulatory challenges and strong competition. For Paytm, which has been under scrutiny in recent years, the recovery in both stock price and financial health indicates an important period of comeback and renewed trust among institutional investors.
At 1:38 PM on the NSE, Paytm shares were trading 1.44% higher at ₹1,243.80.
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