Paytm Flop Will Skim Froth Off India’s IPO Market

India’s biggest ever initial public offering was a flop. That may give sentiment in the red-hot market a needed reality check—but it is unlikely to derail the IPOs of the many other Indian unicorns champing at the bit.

Shares of SoftBank Group and Berkshire Hathaway -backed One 97 Communications, the parent of Indian digital payments giant Paytm, fell 37% in the first two trading days after Paytm went public. The stock has since rebounded but is still 17% below its IPO price.