Paytm Gets Added to MSCI Small Cap Index; Mutual Funds Raise Shareholding in Paytm

After Paytm gets rejigged into the MSCI Small Cap Index from the MSCI Global Standard Index, the company names mutual funds that have increased their investment in it
Paytm Gets Added to MSCI Small Cap Index
Paytm Gets Added to MSCI Small Cap Index

One97 Communications Limited (OCL), the parent company of payments and financial services distribution company Paytm, announced that it has been officially included in the MSCI Emerging Markets Small Cap Index. This inclusion was after it was excluded from the MSCI Global Standard Index. The MSCI Global Standard Index is a popular equity index tracking large- and mid-cap stocks across developed and emerging markets. It is a market-capitalisation-weighted index, in which stocks in the index are weighted according to their market capitalisation. After Paytm saw substantial outflows the company was downgraded to the small-cap index (MSCI Emerging Markets Small Cap Index).

The inclusion in the MSCI Emerging Markets Small Cap Index was along with other 28 stocks, namely Indraprastha Gas, HUDCO, INOX India, Dilip Buildcon, Orchid Pharma etc. The MSCI adjustments are slated for May 31, 2024. This "reclassification" of OCL stock from the MSCI India Index (comprising large and mid-cap companies) to the MSCI Small Cap Index is part of a routine index review process conducted by MSCI, Paytm said.

However, Paytm said that as per the shareholding patterns from stock exchanges by the end of March quarter FY 24, the domestic mutual funds have increased their holdings in Paytm to 6.15 per cent, up from 4.99 per cent in the preceding quarter. Specifically, Mirae Mutual Funds increased their shareholding to 2.39 crore shares (3.76 per cent), while Nippon Mutual Funds raised their stake from 1.05 per cent to 1.66 per cent over the same period, Paytm said,

Paytm said that it has expedited its integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. after the approval from the National Payments Corporation of India (NPCI) in March 2024, for One97 Communications Limited (OCL) to function as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model. All these four banks are now operational on the TPAP platform, making it easier for Paytm to shift user accounts to these Payment Service Provider (PSP) banks. OCL is now focusing on Paytm UPI Lite wallet, to move the users who prefer wallets for low-value everyday transactions, the company said. Paytm UPI Lite is an on-device wallet, that allows users to store and transfer funds with no pin requirement.

Related Stories

No stories found.
Outlook Business & Money