One97 Communications files updated shareholding with Indian stock exchanges

Bangalore: One97 Communications, which runs fintech firm Paytm, on Thursday filed its updated shareholding with Indian stock exchanges, with foreign portfolio investors reducing their stake to 4.42% as of March 31 from 9.36% in the quarter ended March 31.

Retail investors, informed stock exchanges, increased their stake from 3.49% to 7.72% in the same period, while Canada Pension Plan Investment Board (CPPIB) increased its stake to 1.71% from 1.57% earlier.

CPPIB along with BlackRock was the anchor investor in Paytm’s initial public offering (IPO). He had bought more shares in November, just after the listing.

At the close of trading on Thursday, Paytm’s shares were up 1.65 per cent at Rs 641.25 on the BSE.

ET had reported on April 15 that Indian mutual funds were outpacing the beaten-down stocks of new-age businesses and recently listed startups.

SBI Mutual Fund, ICICI Prudential, Nippon India as well as UTI bought shares of One97 in March, as Paytm shares have been under selling pressure since their debut. The stock fell to Rs 520 on March 23, which is almost 76% lower than its listing price of Rs 2,150.

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BSE had recently sought an explanation from Paytm on the continuous fall in its share price.

Earlier this month, in a letter to shareholders, Paytm founder Vijay Shekhar Sharma said the company is looking to wind down operations by the end of September next year.

He also clarified that the expected breakeven on an operating basis or before interest, taxes, depreciation and amortization would be — excluding the cost of its employee stock ownership plan (ESOP).

Sharma also said that his stock grant will be given to him only after the Paytm shares cross the IPO price on an ongoing basis. As per the company’s latest filings, currently, Sharma personally holds 8.89% stake in Paytm and 4.78% through Axis Services Trustee Ltd.

In March, brokerage firm Macquarie lowered Paytm’s share price target to Rs 450 per share, citing low valuations for fintech companies globally.

ET reported on March 29, citing sources, that Paytm was actively focusing on investor relations and was in the process of hiring several senior executives for its investor relations department.

Announcing its results for the quarter ended March 31, Paytm said it has raised total loans to 6.5 million, taking the total to Rs 3,553 crore (or about $474 million).

In the financial third quarter, Paytm had recorded 4.4 million loan disbursals on the platform.

In addition, it processed merchant payment amounts of Rs 2.59 lakh crore (or $34.5 billion) in the fourth quarter, the company said.

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