Spoiling the party: Paytm debacle roils market for unlisted shares

Market experts say the Paytm IPO fiasco will lead to investors asking more questions and give more importance to metrics such as cash flows and price-to-earnings

Paytm’s dismal debut on the stock exchanges has roiled the market for unlisted shares, with the prices of several regularly-traded scrips falling as much as 40 per cent this week.

Platforms facilitating trading in unlisted shares fear that investors’ interest in pre-IPO and unlisted stocks may diminish as the unprecedented sell-off in Paytm shares has shattered confidence.

“As far as the unlisted market is concerned, Paytm’s poor listing is the single biggest factor behind the fall in other unlisted stocks,” said Dinesh Gupta, director of Unlisted Zone. “IPO plans of other loss-making and tech companies are in jeopardy. Also, volumes