Mutual funds continued to buy Paytm in January, with a few exceptions

Before crashing by 55 per cent from 31st January till date, the mutual fund industry’s shareholding in Paytm increased by 41 per cent in January 2024 from December 2023, shows data analysed by Fisdom Research.

On 31 January, the Reserve Bank of India (RBI) placed operational restrictions on Paytm Payments Bank Ltd. (PPBL) due to ongoing non-compliance issues and significant supervisory concerns. The company's stock price has corrected by 55 per cent on both NSE and BSE since 31 January till data.  

In terms of share count, Nippon Mutual Fund, 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. Two AMCs, Baroda BNP Paribas, and Navi MF were the new entrants in Paytm in Jan’24 through actively managed funds.

No of Shares(In Rs Lakhs): AMCs with the highest exposure to Paytm in January 2024

No of Shares(In Rs Lakhs): AMCs with the lowest exposure to Paytm in January 2024

HSBC AMC completely exited from the stock in January 2024, from its actively managed funds. Quant Mutual Fund on the other hand reduced the exposure by 72.4% during the same period & and Aditya Birla Sunlife MF has reduced the exposure by 10%

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.

The number of schemes in Paytm's portfolio increased from 70 to 77 in January 2024.

The Mutual Fund Industry's Rs. 3,384 Crore Exposure to Paytm

19 AMCs do not have any exposure to Paytm in January 2024

AMC Level: Increase and Decrease Trends

HSBC mutual fund fully exits; Quant mutual fund reduces Paytm holdings by 72%

Scheme Level Exposure (Only Active)

Mirae and Nippon AMC schemes hold the largest number of Paytm shares

Scheme Level Exposure(Active): Entry & Exit

More new entrants than complete exits in Paytm holdings