Morgan Stanley Asia (Singapore) Pte, one of every of the lead managers of the initial public giving of One97 Communications Ltd, the parent company of Paytm. It has sold-out a considerable portion of its stake within the firm, the newest information on the holding pattern revealed.
Morgan Stanley’s name is missing from the key shareholders’ list, as per data. However, it’s not clear whether or not the brokerage has sold its entire stake in Paytm or its possession has come back down to under one percent. In public listed firms solely list the names of investors who own quite one percent stake within the company.
“Through its digital payment platform, we believe PAYTM has built a robust customer acquisition engine, which has achieved significant scale – both with consumers and merchants.
“Paytm doesn’t take credit risk and that we believe the bank-fintech collaborative approach is synergistic, scalable and inline with regulatory guidelines. As financial services build up, we expect revenues and profitability to grow strongly over the subsequent five years,” the firm added.
Meanwhile, foreign investors reduced their stake in Paytm by 100 basis points to 9.36 percent from 10.37 percent earlier. Interestingly, mutual funds have increased their stake to 1.06 percent from 0.81 percent earlier.
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Global brokerage firm Macquarie also slashed its target price for the stock by 25 per cent to Rs 900 from the Rs 1,200 earlier. It expects regulatory headwinds as the ‘elephant in the room’ for Paytm.
Last week, Paytm said that it is wrapping up its Canada consumer app from March 14. It had disabled scheduled payments and top-ups for Paytm cash including EMT transfers, Canada Post and transfers from January 14. However, the company clarified that the Paytm Canada consumer app is not material to its overall business. Company contributed only 0.1 per cent to the company’s revenues.
