Paytm's IPO flop may embitter millions of retail investors

The event in a way will nudge people to be cautious and not take the market for granted by blindly placing bets, says a market expert

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

Retail investors, who bought an unprecedented amount of shares in Paytm’s parent One 97 Communications Ltd., have seen more than 35% of their value wiped out in just two trading sessions. Further losses may be in store if the stock slumps from its Monday closing price of Rs 1,359.6 to the Rs 1,200 predicted by Macquarie Group Ltd.

“The event in a way will nudge people to