.png)
The Real IPO Story: FOMO, Greed, and Herd Mentality. Read Before Subscribing to Next IPO
- Wing Commander Pravinkumar Padalkar
- Oct 12
- 2 min read
There’s a sudden IPO mad rush on Dalal Street.
I know many friends who subscribe to every IPO, hoping for quick listing gains.
This is not investing. This is gambling.
Every few years, India witnesses an IPO frenzy, and 2025 is no different.
This year, it’s more than a boom. It’s a full-blown IPO frenzy:
86 IPOs
₹1.7 lakh crore raised
70× average oversubscription
2+ crore retail applications
Why investors jump into IPOs?
Herd Mentality: Everyone is applying, so I should too.
Greed: Quick listing gains tempt investors into chasing instant profits.
FOMO (Fear of Missing Out): Afraid of missing the next multibagger.
Hype & Media Influence: Everyone is talking about it, so it must be good.
Speculation over Research: Decisions driven by sentiment, not fundamentals.
What usually happens?
70%+ underperform the broader market in 2–3 years.
50%+ trade below listing price once the hype fades.
First-day gains rarely last.
Two-thirds of IPOs are trading below their issue price within a year.
Only 36% of IPOs generated positive returns
Only a few become real wealth creators.
What investors should do instead?
Avoid the herd: 90% of IPOs are not worth chasing.
Invest selectively: Only consider IPOs that offer a truly unique opportunity.
Wait & watch: Give it 12 months, study post-listing results, and then decide.
Understand before you invest: If you can’t explain the business, don’t buy it.
Seek guidance: Before jumping on the bandwagon, consult your advisor.
Many retail investors rush into IPOs without doing any fundamental research. Their only question: “How much will I make on listing day?”
But before you jump in, ask yourself:
Am I investing for the long term, or chasing a quick listing-day gain?
Am I a gambler or an investor?
Can I explain this business in one line?
Does this business have a moat?
Will it last 10+ years?
Can it compound my money for 5–10 years?
Investing is not chasing quick returns. Investing is a game of patience. If you want excitement, go roll the dice.
-- Pady
Comments