Lessons from Paytm and Traxen loom large over new IPOs
Concerns about CMR Green Technologies' IPO have emerged against the backdrop of recent high-profile IPO disappointments. One97 Communications (Paytm) and Tracxn Technologies, both of which were loss-making at the time of listing, have seen their value decline significantly since their IPOs.
Paytm shares have fallen nearly 40% from their issue price, while Tracxn's value has declined by nearly 50%, eroding investor wealth by over ₹850 crore. These instances, in a market where cases like the 'Satyam scam' have occurred, are increasing investor skepticism towards IPOs with weak or poor financials.
