Marshall Wace, the British hedge fund, has made a significant foray into the Indian financial market by acquiring a substantial stake in two Indian startups, Paytm and PB Fintech, the parent company of Policybazaar. This move comes amidst a market sell-off of these stocks by BNP Paribas through block deals.
BNP Paribas Arbitrage recently offloaded 42.15 lakh shares of Paytm, equivalent to INR 317.7 crore. The shares were priced at INR 753.75 each, with Marshall Wace securing the larger portion of 40.8 lakh shares. In addition, BNP Paribas sold over 7.66 lakh shares of Policybazaar in two separate deals, totaling INR 70.75 crore. The shares were transacted at INR 922.95 per share, with Societe Generale emerging as the major buyer and Marshall Wace also acquiring a significant portion of over 2.66 lakh shares.
Marshall Wace’s acquisition spree did not stop there. The hedge fund also seized the opportunity to buy more than 86 lakh shares of Zomato, a leading food delivery company, when Societe Generale decided to sell. These recent transactions demonstrate Marshall Wace’s growing presence in the Indian startup ecosystem.
Market analysts have linked these block deals, which involve shares of new-age tech companies, to the broader sell-off by foreign institutional investors in the Indian equities market. Several factors have contributed to the market’s volatility, including the upcoming Union Budget, financial earnings reports, and anticipation surrounding the US Federal Reserve’s policy meeting.
Despite the market sell-off, both Paytm and Policybazaar have shown resilience and upward momentum over the past year. Paytm, for instance, reported a significant 43% year on year reduction in net loss for Q3 FY24 along with a 38% increase in operating revenue. Similarly, Policybazaar has successfully managed to decrease its losses and is on track to report a profit for Q3.
The impact of these developments was felt immediately after the trading session, with PB Fintech’s shares falling by 3.82% and Paytm’s by 1.36%. These fluctuations highlight the market’s sensitivity to various economic indicators and the influence of investor activities.
In summary, Marshall Wace’s acquisition of a substantial stake in Indian startups Paytm, PB Fintech, and Zomato amidst the market sell-off by BNP Paribas reflects the hedge fund’s growing interest in the Indian financial market. The block deals of these new-age tech stocks coincide with broader volatility in the Indian equities market, driven by a range of factors. Although the market experienced a sell-off, both Paytm and Policybazaar have demonstrated promising growth in recent times. The impact of these acquisitions and market fluctuations will continue to be closely monitored as investors anticipate the outcomes of key economic events.
