Paytm shareholding changes: Following its recent buyback, Chinese investor Ant Financials and domestic mutual fund players increased their stake in digital payments and financial services firm Paytm. In a regulatory filing, the company updated its shareholding pattern, indicating that Ant Financial’s stake in the company increased slightly from 24.86 percent as of December 31, 2022 to 25.47 percent now.
On February 13, the fintech firm informed stock exchanges that it had repurchased 15.57 million equity shares, representing 2.4 percent of total outstanding shares, at a weighted average price of $545.93 per share. As a result, while the absolute number of shares held by continuing shareholders remains unchanged, their percentage stake in the company increases proportionally.
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Domestic institutional shareholding has increased by 1.11 percent, most likely due to an increase in Mutual Fund and AIF shareholding. Mutual funds have increased their position from 1.73 percent to 2.68 percent since December 2022, owing to strong third-quarter results.
Jack Ma-backed Ant Group is considering selling some of its shares in the operator of Indian financial technology firm Paytm to keep its holding within a required threshold, people familiar say https://t.co/zqGmhqKy1H
— Bloomberg (@business) February 25, 2023
Foreign institutional shareholding, on the other hand, has decreased from 72.8 percent to 71.9 percent. FDI shareholding fell, while FPI Cat 1 shareholding increased from 6.7% to 10.6%. (a 3.9 per cent increase).
According to the most recent update, Alibaba has exited the fintech behemoth. The Chinese e-commerce company owned 6.26% of Paytm, which it sold in two installments in January and February of this year.
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As a result of the buyback, Jack Ma’s Ant Group Ant’s stake in Paytm has increased slightly from 24.86 percent as of December 31 to 25.47 percent now, though Ant still owns 161.4 million shares in Paytm, the same number as before the buyback.
According to SEBI regulations, a period of 90 days is provided from the date of the buyback’s closure to restore the stake below 25%.
Meanwhile, Paytm is continuing to expand rapidly. Paytm achieved operating profitability in its recently announced Q3FY23 results, well ahead of its September 2023 guidance.
