Paytm's updated shareholding shows increase in stake of domestic mutual funds and reduction in share capital base by 2.4%
Feb 27, 2023
New Delhi [India], February 27 : One97 Communications, which owns the payments and financial services platform Paytm, completed its Rs 850 crore share buyback earlier this month.
On February 13, the fintech company had informed the stocks exchanges that it repurchased 15.57 million equity shares, representing 2.4 per cent of the total number of outstanding shares, at a weighted average price of Rs 545.93 per share. Consequently, the percentage stake of continuing shareholders in the firm will rise on a proportionate basis, though the absolute number of shares held by them remains the same.
Domestic institutional shareholding has increased by 1.11 per cent likely on account of increase in shareholding of Mutual Funds and AIFs. Mutual funds have increased their position since December 2022, on the back of strong Q3 results -- from 1.73 per cent to 2.68 per cent.
On the other hand, foreign institutional shareholding has reduced from 72.8 per cent to 71.9 per cent. FDI shareholding saw a reduction, FPI Cat 1 shareholding increased from 6.7 per cent to 10.6 per cent (a 3.9 per cent increase).
According to the latest update, Alibaba has completely exited the fintech giant. The Chinese e-commerce company held a 6.26% stake in Paytm which it sold in two tranches in January and February this year.
Consequent to the buyback, Jack Ma-backed Ant GroupAnt's holding in Paytm has moved up slightly from 24.86 per cent as of December 31 to 25.47 per cent now, though Ant continues to hold 161.4 million shares in Paytm, the same number of shares as it held before the buyback.
As per SEBI regulations, a period of 90 days is provided from the date of closure of the buyback to restore the stake below 25 per cent.
Meanhwile, Paytm continues to be on a strong growth path. In its recently announced Q3FY23 results, Paytm achieved its milestone of operating profitability, much ahead of its September 2023 guidance.
The company's EBITDA before ESOP cost stood at Rs 31 crore with EBITDA before ESOP margin at 2 per cent of revenues as compared to (27 per cent) a year ago. The fintech giant's revenue from operations increased 42 per cent YoY to Rs 2,062 Cr, driven by growth in its core payments business and sustained growth momentum in credit business and commerce business.
