Paytm shocking debut deals a reality check to small investors flocking IPOs

Paytm's 27% drop is the worst Day-1 performance among 50-odd IPOs listed this year

Crash in Paytm’s share price on its first day of listing has come as a reality check for small investors, who are flocking to IPOs in droves. Attractive day-one pop for most companies that have listed this year have encouraged many first-time investors towards the primary market, without properly understanding the risk.

About 50 companies have got listed this year following their IPO. The average first-day gain for them is 31 per cent. Further, less than 10 IPOs have listed at a discount of 5 per cent or more. Paytm’s 27 per cent drop is the worst Day-1 performance among