Paytm IPO, India’s largest ever, seen as a ‘high-risk’ bet for investors

Mumbai: Investing in Paytm’s initial public offering (IPO), billed as the biggest in India’s corporate history, could prove to be a “very high-risk bet” and might not see a sizable jump when it lists on stock exchanges, a fund manager said on Tuesday.

“In Paytm’s case, where there is the strength of the network effects — it’s the largest digital payments platform from a merchant’s perspective — it has a long runway to capitalise on that and hopefully generate some profits along the way,” Rakhi Prasad, an investment manager with Alder Capital told Bloomberg TV’s Haslinda Amin and Rishaad Salamat.