Paytm shares plunge 20%; Brokerages raise concerns over decision to slow the postpaid loans

Shares of Paytm experienced a sharp decline of 20 percent in the opening trade today on December 7. The nosedive followed the company’s announcement of plans to slow down its small-ticket postpaid loans while simultaneously focusing on the expansion of high-ticket personal loans and merchant loans. The market’s response to this strategic shift prompted brokerages to revise their revenue estimates for Paytm.

During early trading hours, Paytm shares were locked in the 20 percent lower circuit at Rs 650.45.