New Delhi: Shares of One 97 Communications which owns digital payment brand PayTm, fell 20 percent early trading on Thursday following news that the company woul cut personal loans below Rs 50,000 (about $600). One 97 Communications shares hit the lower circuit in early trade.
At 11.24 am, shares of One 97 Communications Ltd were down by Rs 140.65 or 17.30 percent to Rs 672.40 apiece.
One 97 Communications in a regulatory filing on December 6 said, "On the back of recent macro development and regulatory guidance, in consultation with lending partners, in line with its continued focus on driving a healthy portfolio, the company has recalibrated the portfolio origination of less than ₹50,000, which is prominently the postpaid loan product and will now be a smaller part of its loan distribution business going forward."
The company announced that it will further expand its business to offer higher ticket personal and merchant loans, which would be targeted at lower risk and high credit worthy customers, in partnership with large banks and NBFCs.
Meanwhile, news agency ANI has reported that brokerages are bullish on Paytm stock as company expands loan portfolio.
Bank of America (BofA), JM Financial Services, Jefferies, Motilal Oswal Financial Services, and Dolat, have maintained a 'buy' rating on Paytm stock. Morgan Stanley maintains an 'equal-weight' rating on Paytm stock.
BofA has set a target price of Rs 1,165 per share.
