The cost of chasing listings

Summary: Every few years, a splashy IPO tests investor discipline and the latest one has done exactly that. When excitement peaks and valuation caution fades, history tends to repeat itself. This piece looks at why IPO euphoria so often ends poorly, what long-term data really shows and how disciplined investors can avoid the traps that resurface with every new listing. There is something about IPOs that stirs peculiar excitement among investors. Each big listing arrives with the promise of early riches and effortless gains. The Rs 70,000 crore Lenskart issue, fully subscribed on day one at an estimated 260 times earnings, was only the latest in this familiar story. The enthusiasm is not new, and neither are the outcomes. This isn’t the first time that Indian investors, otherwise hard bargainers, have thrown caution aside. For decades, they’ve paid steep prices for the idea of extraordinary growth and almost always paid dearly for it. We have seen this before. During the late-1990s tech boom,

This article was originally published on December 01, 2025.