The risk factor

New-age tech firms are inherently more risky

The initial public offering (IPO) of Paytm managed to sail through, but the listing has been a debacle. India’s largest-ever issue raised Rs 18,300 crore for the parent company, One97. But a disastrous price-drop on listing wiped out an estimated Rs 38,000 crore of market value and the sell-off has affected the worth of unlisted start-ups. The regulator is reportedly seeking an explanation from the company, and the merchant bankers concerned, as to the possible underlying causes. While the Securities and Exchange Board of India (Sebi) is well within its rights to enquire as to whether investors were misled by