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Combined shareholding of domestic institutional investors climbs to a record 29.5% in Q2 FY27, compared with 24.9% in the preceding quarter.
Domestic mutual funds raised their combined holding in One 97 Communications to 21.2% in the September quarter from 17.9% in the June quarter.
One97 Communications Ltd, the parent company of Paytm, has strengthened its domestic investor base, with Indian shareholders holding more than 56% of the company at the end of the September quarter of FY27, according to its latest shareholding pattern filed with the stock exchanges.
The company has remained majority Indian-owned for the third consecutive quarter, with domestic institutional investors stepping up their exposure. Their combined shareholding climbed to a record 29.5% in Q2 FY27, compared with 24.9% in the preceding quarter.
The rise in domestic ownership comes amid significant stake sales by foreign investors during the July-September quarter. Shares sold through large block deals were absorbed by domestic mutual funds, insurance companies and provident and pension funds, indicating increased participation from Indian institutional investors.
Mutual Funds Increase Paytm Exposure
Domestic mutual funds raised their combined holding in One 97 Communications to 21.2% in the September quarter from 17.9% in the June quarter.
Kotak Mutual Fund increased its stake to 2.13% from 1.51% in the previous quarter. SBI Mutual Fund, Axis Mutual Fund and Sundaram Mutual Fund also featured among shareholders with more than 1% ownership for the first time at the end of the quarter, holding 1.47%, 1.13% and 1.05%, respectively.
Insurance companies also expanded their holdings in the fintech company. Their combined stake rose to 6.2% in Q2 FY27 from 5.3% in Q1 FY27.
SBI Life Insurance increased its holding to 1.74% from 1.50%, while Tata AIA Life Insurance raised its stake to nearly 2.2% from 1.75%. Provident and pension funds also increased their exposure during the quarter.
Foreign Holdings Decline After Block Deals
Foreign direct investment (FDI) holdings in One 97 Communications fell to 18.4% in Q2 FY27 from 23.8% in the previous quarter, following two significant block deals.
Entities associated with Elevation Capital sold around 2.3% of the company for approximately Rs 2,038 crore. Separately, Resilient Asset Management BV offloaded nearly 3% of its stake for about Rs 2,949 crore during the July-September period.
The transactions contributed to the shift in the company’s shareholder mix, with domestic institutional investors taking up a larger share of the stock.
The latest shareholding data extends a trend of rising domestic institutional participation in Paytm, as Indian funds and insurers increase their presence in the company’s shareholder base.
Paytm’s Financial Performance
The increase in domestic ownership follows an improvement in One 97 Communications’ financial performance. In the first quarter of FY27, the company reported a 28% year-on-year rise in operating revenue to Rs 2,448 crore.
Profit after tax (PAT) increased 79% year-on-year to Rs 220 crore, while quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) reached a record Rs 203 crore.
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Ask News18Indian shareholders held more than 56% of One97 Communications Ltd, the parent company of Paytm, at the end of the September quarter of FY27, marking the third consecutive quarter that the company remained majority Indian-owned.
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