Motilal Oswal Mutual Fund has increased its stake in One 97 Communications (Paytm) to 5.15% by purchasing 26.31 lakh shares. This investment has been made through more than 20 fund schemes. Following this move, Paytm shares touched a new 52-week high, and the company's market cap reached approximately ₹78,728 crore.
Paytm Market Cap: On August 11, Motilal Oswal Mutual Fund purchased 26,31,244 shares of One 97 Communications, the parent company of Paytm, from the open market, increasing its stake to 5.15%. According to an exchange filing, this investment was made through midcap, flexi-cap, ELSS, and several ETF schemes. Following this news, Paytm's shares reached a 52-week high of ₹1238.55 on the BSE, and the company's market cap became ₹78,727.65 crore.
Stake Reaches Above 5 Percent
Motilal Oswal Mutual Fund has increased its stake in One 97 Communications by making purchases from the open market. The company bought 26,31,244 shares on August 11. After this purchase, the fund's stake increased by 0.41 percent, and it now stands at 5.15 percent. The fund house has confirmed this information in a disclosure to the exchange. However, it has not been clarified at what price these shares were purchased.
Purchases Made Through Several Schemes
According to information, these shares have been purchased through more than 20 schemes of Motilal Oswal. These include midcap funds, flexi-cap funds, ELSS tax saver funds, and several ETFs. This move indicates that the fund house appears confident about Paytm's business model and its future.
Continued Surge in the Stock Market
Paytm shares have been witnessing tremendous growth for the past few days. On Tuesday, the company's share on the BSE closed at ₹1227.30, up by 4.58 percent. Meanwhile, during the day's trading, it touched the level of ₹1238.55, which is its new 52-week high. Meanwhile, its 52-week low is ₹505.25. On Wednesday morning, the share also appeared to be trading in the green and reached close to ₹1233.
Company's Market Cap Strengthened
Due to this surge in Paytm's shares, its market cap has also increased significantly. According to BSE data, the current market cap of One 97 Communications has reached ₹78,727.65 crore. Market experts believe that the increased stake of the fund house may further increase investors' confidence in the company.
On Wednesday, the domestic stock market opened with a slight gain. The BSE Sensex opened 27.08 points higher at 81,671.47 points. However, the NSE Nifty 50 index opened with a marginal decline of 14.85 points at 24,965.80 points. In early trade, Paytm's shares were the most keenly watched, as the increasing interest of institutional investors in the company raised the possibility of further gains.
Growing Investor Confidence
This move by Motilal Oswal Mutual Fund is being considered a major support for Paytm. In the recent past, the company has worked towards strengthening its payments and financial services business. Along with this, the increasing demand in digital payments and the growing number of consumers have also strengthened the company's position.
