Motilal Oswal Mutual Fund Stakes 5.15% in Paytm Parent

Motilal Oswal Mutual Fund has increased its holding in One 97 Communications, the parent company of Paytm, to 5.15%. This came after the fund bought 26.31 lakh shares from the open market.

Before this deal, Motilal Oswal AMC held 4.75% in the company. The new purchase pushed its stake above 5%, which required an official disclosure as per SEBI rules. Crossing this mark is generally seen as a strong sign of confidence in the company.

Why This Matters

Paytm has faced many challenges recently. The Reserve Bank of India (RBI) asked the company to wind down its payments bank operations, which created uncertainty. Rather than these setbacks, big investors like Motilal Oswal are still showing faith and trust by buying more shares.

This reflects that institutional investors believe in Paytm’s long-term potential, especially in areas like digital payments, UPI transactions, and financial services.

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How does It Impact the Market?

News of Motilal Oswal’s increased stake kept Paytm’s shares in focus on the stock market. Analysts say that "when well-known Mutual Funds buy more shares, it often boosts investor sentiment and gives retail investors more confidence".

India’s digital payments industry is growing quickly and Paytm is one of the biggest players in this space. Despite regulatory challenges, many experts believe the company has room to expand and strengthen its business model.

Motilal Oswal’s move also shows a larger trend: Indian mutual funds are now investing more actively in new-age tech companies, a sector once dominated by foreign investors.

For regular investors, this development indicates that large, experienced funds continue to bet on Paytm’s future. While short-term challenges remain constant, the long-term growth story of India’s digital payments market could work in the company's favour.

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