After Paytm announced a strategic shift, scaling back small-ticket loans and restructuring its Buy Now, Pay Later (BNPL) business, the company’s shares saw a 20% decline – the largest since its listing. One 97 Communications, Paytm’s parent company, closed at Rs 660.70, down Rs 152.35. The recalibration focuses on reducing portfolio origination for loans under Rs 50,000, affecting the postpaid loan product, which accounted for over 50% of total disbursements. Analysts anticipate a moderate impact on sourcing and take rates, while some brokerages, including Goldman Sachs and Jefferies, downgraded Paytm stocks or adjusted target prices downward. The move aims to navigate recent macro developments and regulatory guidance.
Paytm Shares Plunge 20% as Company Restructures Small-Ticket Loans
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