read on app
Paytm share price: Shares of fintech firm One97 Communications Limited (Paytm) fell by a huge 20% on Thursday, the fourth trading day of the week. During trading this share came to a low level of Rs 650.65. The previous closing of the share was Rs 813.30. Let us tell you that the 52 week high of the share is Rs 998.30. This level was on 20 October 2023.
Why are the shares falling?
In fact, Paytm has announced plans to slow down its small-ticket postpaid loans. Paytm has taken this decision after strictness from the Reserve Bank regarding unsecured loans. This decision also did not go down well with the brokerages, forcing them to cut their revenue estimates for the company. However, along with this the company wants to expand its personal and business loans.
According to Paytm, the company will gradually reduce the level of unsecured loans below Rs 50,000. Let us tell you that postpaid is a loan portfolio which is mainly less than Rs 50,000. Experts believe that after Paytm's decision, postpaid loans may be halved, but it will not have any impact on margins or revenue. Its impact on revenue will be minimal.
Brokerage firm Jefferies said Paytm has decided to restructure its 'buy now, pay later' (BNPL) business. In fact, after the recent move of the Reserve Bank on giving unsecured loans, the lending partners have backed down. According to Jefferies, BNPL distributions, which account for 55 per cent of total distributions, will halve in the next 3-4 months.
