This investor's ₹360cr Paytm bet is now worth ₹1,225cr
What's the story
Ace investor Akash Bhansali has made a killing with his investment in fintech company Paytm. The value of his stake in One97 Communications, the parent company of Paytm, has skyrocketed from around ₹360 crore to nearly ₹1,225 crore. This is an increase of roughly ₹865 crore and represents a whopping 3.4 times return on his initial investment.
Investment details
Bhansali's initial stake was acquired at ₹360 crore
Bhansali, who is associated with Enam Holdings, had entered One97 Communications when the stock was under pressure due to regulatory action against Paytm Payments Bank.
He had disclosed a 1.21% stake in the company in Q2 2024 when Paytm shares were trading near their lows.
As per the latest shareholding data, Bhansali holds 79,21,162 shares of One97 Communications or a 1.24% stake in it.
Market performance
Stake value surges after brokerage upgrades Paytm
The value of Bhansali's stake has more than tripled from the roughly ₹360 crore level associated with his initial investment.
The latest jump in the value of Bhansali's holding came after Paytm shares rallied on Monday.
One97 Communications shares jumped nearly 9% in intraday trade on Monday after brokerage Bernstein raised its target price for the stock to ₹2,200 while retaining an 'Outperform' rating.
Investor resilience
Bhansali's entry during a challenging phase for Paytm
Bhansali's entry into Paytm came at a challenging time for the company.
In early 2024, the Reserve Bank of India imposed restrictions on Paytm Payments Bank, triggering a steep sell-off in One97 Communications.
The stock subsequently hit a 52-week low of ₹310. By June-end 2024, it had recovered to ₹465.20 when Bhansali acquired his initial stake of 1.21%.
Portfolio overview
Bhansali's investment portfolio and other holdings
Bhansali has increased his holding over time. The company's September 2024 shareholding data showed that his stake had risen to 1.24% or 79,21,162 shares.
He has held the same number of shares through the latest available quarterly data.
Now, Bhansali's investment portfolio includes 16 publicly disclosed stocks with a combined value of over ₹7,900 crore, as per the latest shareholding data.