Paytm’s debacle casts doubt over IPOs

Big loss: A shopkeeper arranges items in a grocery store where a barcode for Paytm is displayed in New Delhi. Retail investors have seen 37% of their value being wiped out in the firm in just two trading days. ― AFP

MUMBAI: A stunning two-day plunge by India’s Paytm after its initial public offering (IPO) casts a shadow over the prospects for technology firms preparing to go public in what was supposed to be the country’s breakout year.

At least some of the IPO prospects that have been “on the periphery” and looking to benefit from the flood of transactions may now rethink the timing and pricing of their issues, Agrawal said.