Paytm share price surges 29% in 4 weeks even as broader volatility grips the market

New-age tech stocks: Shares of One 97 Communications, the parent company of Paytm, have been maintaining a steady upward trend recently, resulting in handsome returns for shareholders. Over the last four weeks, the shares have surged from ₹651 to ₹840 apiece, delivering a 29% return.

Notably, the stock has closed in the green for four consecutive weeks. It bounced back in March with a gain of 9.60% after struggling during the first two months of 2025, and the upward momentum has continued into April, with the stock up 7% so far this month. Despite the recovery, the stock remains down 17% for 2025 year-to-date. The stock finished CY24 with a stellar gain of 60%. 

Mutual funds boost stake in Paytm to all-time high

Domestic mutual fund houses have reaffirmed their confidence in Paytm, increasing their stake to an all-time high during the March quarter. Mutual funds have raised their shareholding by 1.9 percentage points, taking their total stake to 13.1%, according to the company’s latest filing with the stock exchanges.

The increase in domestic institutional interest was primarily driven by Nippon India Mutual Fund and Motilal Oswal Mutual Fund. Nippon India increased its stake by 0.4 percentage points to 2.8%, while Motilal Oswal added 0.2 percentage points, raising its holding to 2.3%.

Overall institutional ownership — including both domestic and foreign entities — rose by approximately 1 percentage point sequentially to reach 69%. The data also indicates increased activity from other domestic institutional categories. Insurance companies raised their participation, with five new entities joining, taking their combined holding to 2.8 million shares.

Alternative Investment Funds (AIFs) also boosted their total shareholding from 2.2 million to 2.8 million shares, with two new entities added to the cap table. These developments reflect consistent institutional confidence in the company’s long-term prospects.

On the non-institutional front, retail investors slightly reduced their exposure — a common trend during periods of heightened market volatility.

Retail shareholding (for investments under ₹2 lakh) declined from 11% to 10.4%, while high-net-worth retail holdings (above ₹2 lakh) dipped from 2.9% to 2.6%. Director holdings remained unchanged at 9.3%.

Recent developments

In early April, the company announced a partnership with the Greater Hyderabad Municipal Corporation (GHMC) to streamline property tax collection by deploying over 400 Paytm All-In-One EDC devices (card machines).

In mid-March, the company’s wholly owned subsidiary, Paytm Money, received approval from the market regulator to operate as a research analyst. With this registration, Paytm Money can now offer SEBI-compliant research services, including investment insights, research reports, and data-driven analysis.

As Paytm gradually recovers from last year’s disruptions, domestic brokerage JM Financial, in its latest report, highlighted three potential regulatory triggers in the coming fiscal year: the introduction of MDR on high-ticket UPI payments from large merchants, the lifting of the embargo on Paytm Payments Bank, and the granting of a Payment Aggregator (PA) or Payment Gateway (PG) license.

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