HSBC MF fully exits Paytm; Quant Aditya Birla reduce shareholdings by 72%

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.

In a recent note, Fisdom Research 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. 

Two AMCs, 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, informed 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.

The RBI’s decision on February 16 to grant an additional 15 days until March 15, 2024, for PPBL to halt deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags, has been perceived as a move to safeguard the interests of customers, including merchants.

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Published: 22 Feb 2024, 08:34 PM IST

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