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Business News/ Markets / Stock Markets/  HSBC mutual fund fully exits Paytm; Quant, Aditya Birla reduce shareholdings by 72%: Fisdom
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HSBC mutual fund fully exits Paytm; Quant, Aditya Birla reduce shareholdings by 72%: Fisdom

Quant MF on the other hand reduced the exposure by 72.4 percent during the same period and Aditya Birla Sunlife MF has reduced the exposure by 10 per cent, according to brokerage house Fisdom Research.

MF industry’s shareholding in Paytm increased by 41 per cent in January 2024 from December 2023. Photo: MintPremium
MF industry’s shareholding in Paytm increased by 41 per cent in January 2024 from December 2023. Photo: Mint

After the Reserve Bank of India (RBI) placed operational restrictions on Paytm Payments Bank Ltd. (PPBL) due to the ongoing non-compliance issues and significant supervisory concerns, HSBC mutual fund (MF) completely exited from the stock (One 97 Communications) in January ’24, from its actively managed funds. 

Quant MF on the other hand reduced the exposure by 72.4 percent during the same period and Aditya Birla Sunlife MF has reduced the exposure by 10 per cent, according to brokerage house Fisdom Research. After the RBI action, shares of One 97 Communications shares declined 55 per cent on NSE and BSE. Moreover, following the announcement, major players such as Jefferies and Macquarie also downgraded the stock rating.

Fisdom Research also highlighted that before the recent decline since January 31, the MF industry’s shareholding in increased by 41 per cent in January 2024 from December 2023. As per the brokerage, in terms of share count, Nippon MF, Mirae Mutual Fund, and Motilal Oswal Mutual Fund rank as the top three, holding the largest number of Paytm shares in their portfolios as of January 2024. 

Also Read: Ahead of the RBI restrictions, MF industry’s shareholding in Paytm increased by 41% in January 2024: Fisdom

Baroda BNP Paribas and Navi MF were the new entrants in Paytm in Jan’24 through the actively managed funds. Also, Motilal Oswal MF, UTI MF, Franklin Templeton MF, JM MF, and Nippon India MF increased their exposure in Paytm the most in January 2024.

Furthermore, SBI Mutual Fund, Edelweiss Mutual Fund, Kotak Mutual Fund, TATA Mutual Fund, ICICI Mutual Fund, Bandhan Mutual Fund, and Grow Mutual Fund were not actively exposed to Paytm, according the brokerage.

Fisdom also pointed out that the number of schemes in Paytm's portfolio increased from 70 to 77 in January 2024. The MF industry currently has a 3,384 crore exposure to Paytm. However, it also mentioned that 19 AMCs did not have any exposure in the stock in January 2024.

Paytm Share Price

Following a significant downturn since January 31, shares of One 97 Communications, the parent company of Paytm, have recently displayed remarkable upward momentum, consistently hitting upper circuit limits in recent trading sessions.

In today's trading session, the stock surged to a five per cent upper circuit limit at 395.25, marking the fourth consecutive day of a five per cent rally. Over these four days, the stock has accumulated a total gain of 21.5 per cent.

Currently trading at 376, the stock is 63 per cent away from its 52-week high of 998.30, hit on October 20, 2023. Post the RBI move, Paytm hit its record low of 318.35 last week on February 16, 2024. In the last one year, the stock has shed over 40 per cent. Meanwhile, it has cracked over 48 per cent just in February after a 20 percent rise in January.

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 22 Feb 2024, 08:34 PM IST
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