One 97 Communications Ltd. , the parent company of Paytm, has witnessed a significant shift in its shareholding pattern, with retail investors continuing to exit while mutual funds increase their stakes.

Retail Shareholders on the Decline

For the sixth consecutive quarter, Paytm has seen a decrease in its retail shareholder base:

This consistent decline suggests a changing sentiment among individual investors towards the fintech giant.

Mutual Funds Ramp Up Holdings

In contrast to the retail exodus, domestic mutual funds have shown increased confidence in Paytm:

Key mutual fund investors include:

1. Motilal Oswal Midcap Fund (5.57%)
2. Nippon India Growth Midcap Fund (2.11%)
3. Mirae Asset Largecap Fund (1.66%)

Founder's Stake and Stock Performance

• Vijay Shekhar Sharma, Paytm's founder, maintains a 9.07% stake in the company.
• Paytm shares have shown strong performance:
  • July-September: 22% gain
  • April-June: 18% gain
• The stock closed at ₹1,306.80

Analyst Outlook

Axis Capital has upgraded Paytm's stock, setting a target price of ₹1,500.00. This upgrade, coupled with the increased mutual fund interest, may signal growing institutional confidence in Paytm's business model and future prospects.

The contrasting movements between retail and institutional investors highlight the complex dynamics at play in One 97 Communications' shareholding structure. While retail investors appear to be booking profits or losing confidence, mutual funds are seeing value in the fintech leader's long-term potential. As the Indian digital payments landscape continues to evolve, Paytm's ability to maintain its market position and deliver on growth expectations will be crucial in shaping investor sentiment going forward.

One 97 Communications Limited (Paytm) has unveiled two significant restructuring initiatives aimed at streamlining its operations and complying with regulatory requirements. The company's board has approved these measures in a meeting held on October 15, 2025.

Transfer of Offline Merchants Payment Business

Paytm will transfer its Offline Merchants Payment Business to its wholly-owned subsidiary, Paytm Payments Services Limited (PPSL), through a slump sale. This move is designed to comply with the Reserve Bank of India's Master Directions on Payment Aggregators dated September 15, 2025.

Key points of the transfer include:

• The transferred business encompasses QR, soundbox, and EDC machine payments.
• Revenue generated by this business segment in FY 2024-25 was approximately INR 2,580.00 crores, representing 47.00% of Paytm's standalone revenue.
• The transfer is valued at approximately INR 960.00 crores, based on the book value of assets and liabilities.
• The transaction is expected to be completed by December 31, 2025, subject to necessary approvals.

This restructuring will consolidate Paytm's online and offline merchant payments businesses under PPSL, which has in-principle approval from the RBI to conduct Payment Aggregator Online (PA-O) business.

Group Structure Simplification

Paytm has also approved a group restructuring initiative to simplify its corporate structure. This involves acquiring stakes in multiple subsidiaries from Vijay Shekhar Sharma and related entities. The total consideration for these acquisitions is up to INR 4.02 crores.

Key acquisitions include:

Additionally, Paytm will convert debentures worth approximately INR 15.00 crores in Little Internet Private Limited, increasing its shareholding from 62.53% to about 78.00%.

All these transactions are expected to be completed by January 31, 2026.

Employee Stock Option Plan Update

In a separate announcement, Paytm's Nomination and Remuneration Committee approved the grant of 2,46,261 stock options to eligible employees under the One 97 Employees Stock Option Scheme 2019 (ESOP 2019). The committee also noted 9,69,511 lapsed stock options and 4,557 cancelled stock options.

Upcoming Financial Results

Paytm has scheduled a board meeting for November 4, 2025, to consider and approve the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025. An earnings conference call for investors and analysts is planned for November 5, 2025.

These restructuring initiatives and upcoming financial disclosures underscore Paytm's efforts to enhance operational efficiency, comply with regulatory requirements, and maintain transparency with its stakeholders.