One97 Communications, the parent company of Paytm, announced Wednesday that its board will consider a bonus issue of shares, along with its June-quarter results, at a meeting scheduled for July 20.
If approved, this would mark the first bonus share issue since Paytm was listed in 2021. The size of the bonus issue and the record date are yet to be announced.
Paytm had last undertaken a corporate action in December 2022, when it completed an open market share buyback worth Rs 850 crore.
The company made its stock market debut in 2021, listing below its issue price of Rs 2,150 per share, a level the stock has yet to revisit. It later fell to a record low of around Rs 300 amid regulatory challenges and concerns over its path to profitability.
Also read: Paytm remains majority Indian-owned for 2nd consecutive quarter
Paytm attracts domestic ownership
The proposed bonus issue comes at a time when domestic ownership in the company has continued to rise. According to the latest shareholding pattern for the quarter ended June 30, 2026, domestic investors held around 51.6% in the company, up from 50.3% in the previous quarter. The increase further strengthens Paytm's status as an Indian-Owned and Controlled Company (IOCC), a milestone it first achieved in March 2026.
Domestic institutional ownership also reached a record high of 24.9% during Q1FY27, compared with 23.1% in the previous quarter. Mutual funds increased their combined holding to 17.9% from 16.6%, while the number of mutual funds invested in the company rose to 43 from 41. Funds managed by Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Nippon Mutual Fund, Mirae Asset Fund and Kotak Mutual Fund were among the domestic investors that increased their stakes during the quarter.
Domestic insurance companies also raised their combined holding to 5.3% from 5.1%, led by SBI Life Insurance.
Read more: Paytm plans 10% staff increase in AI pivot, to lay off 400
Paytm financials
The steady increase in domestic ownership follows an improvement in the company's financial performance. In FY26, Paytm reported its first full-year profit, with profit after tax of Rs 552 crore. Revenue from operations rose 22% year-on-year to Rs 8,437 crore, while EBITDA stood at Rs 502 crore, improving by Rs 2,008 crore from a year earlier.
The improving fundamentals have also attracted positive commentary from global brokerages. Last month, Goldman Sachs retained a positive view on the stock and raised its revenue estimates by 2% and EBITDA estimates by up to 6%, citing continued market share gains in the payments business and strong growth in financial services. The brokerage also said Paytm's valuation multiple could see further re-rating if the company continues to deliver revenue growth of more than 20%.
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