The stock market has seen significant fluctuations in recent months, and Paytm has been at the center of attention. As we dive into 2025, the fintech giant’s shares have taken a considerable hit, plummeting from ₹987.60 to ₹810 on the NSE, which translates to approximately an 18% decrease year-to-date. Despite this downturn, it appears that mutual funds are unfazed, actively increasing their holdings in One97 Communications Ltd, the parent company of Paytm.

Mutual Funds Boost Their Stake in Paytm

According to the recent shareholding data for the period from January to March 2025, mutual funds have raised their collective stake in Paytm from 11.20% to 13.11%. This increment reflects a strategic move by these investment entities, showcasing their confidence in Paytm’s long-term prospects. Here’s a breakdown of the key players:

• Motilal Oswal: Increased its holdings to 1,46,67,579 shares (2.30%).
• Nippon Mutual Funds: Owns 1,75,84,159 shares (2.76%).
• Mirae Asset Mutual Funds: The largest investor with 2,66,40,278 shares (4.18%).

The total mutual fund ownership now stands at 8,36,17,835 shares, which makes up 13.11% of Paytm’s total paid-up capital.

Recent Trends in Mutual Fund Investments

During the previous quarter, from October to December 2024, mutual funds held 7,14,14,139 shares, equating to 11.20% of the company. This indicates that they acquired an additional 1,22,03,696 shares in the last quarter alone.

Here’s how the holdings shifted during this period:

• Motilal Oswal: Increased from 2.11% to 2.30%.
• Nippon Mutual Funds: Grew from 2.32% to 2.76%.
• Mirae Asset Mutual Funds: Slightly increased from 4.17% to 4.18%.

Despite these increases, the precise method of acquisition—whether in bulk or through gradual purchases—remains unclear.

Paytm’s Share Price Journey

Since the beginning of 2025, Paytm’s share price has been on a downward trajectory, moving from ₹987.60 to ₹810. This drop is significant, especially when compared to its IPO price of ₹2150 per share, marking a decline of over 60%. However, it’s worth noting that over the past year, Paytm has shown resilience by doubling investors’ money, achieving returns of over 100%.

As we look ahead, Paytm’s performance in the stock market will be closely monitored, particularly how mutual funds continue to adjust their strategies in response to market conditions. With their increased stake, these funds seem to believe in a brighter future for the fintech giant, despite the current volatility.

For more insights on stock market trends and investment strategies, stay tuned to our regular updates!