Paytm shares continued their decline, dropping further by 4% on Wednesday morning following the complete exit of six mutual funds from the stock. As of 9:49 am, the shares were trading 2.76% lower at ₹359.20.
Mahindra Manulife Mutual Fund, Quant Mutual Fund, Bajaj Finserv MF, JM Financial MF, Union MF, and Baroda BNP Paribas MF have entirely divested from Paytm stock. This decision came after a tumultuous period for the company, marked by regulatory actions from the RBI.
In February, six mutual funds fully exited One97 Communications Ltd, the owner of Paytm, while six others significantly reduced their stakes. The total divestment amounted to over 91 lakh shares valued at Rs 380 crore.
Motilal Oswal MF led the selling spree with 27.14 lakh shares valued at Rs 113 crore. Aditya Birla Sun Life and Mahindra Manulife MF followed suit, each selling over 15 lakh shares worth Rs 63 crore. Other mutual funds, including UTI, Franklin Templeton, Quant, and Nippon, offloaded shares worth around Rs 47 crore, Rs 29 crore, Rs 26 crore, and Rs 16 crore, respectively.
The sharp decline in Paytm’s stock price in February, plummeting over 50%, was triggered by concerns raised by the Reserve Bank of India regarding Paytm Payments Bank Ltd. The RBI considered revoking its license, citing multiple lapses and money-laundering concerns. Despite assurances from the company that neither it nor its founder are under investigation, investor confidence has been shaken.
Currently, 18 mutual funds hold Paytm shares valued at Rs 1,426 crore, down from 24 mutual funds in January with a value of Rs 3,384 crore.
