India's IPO Frenzy: Fund Managers Warn of Overvaluation

• India's IPO market is experiencing a frenzy, with companies raising over ₹1.25 lakh crore between April and October 2025, potentially surpassing the previous record.
• Fund managers, including Vikas Khemani of Carnelian Asset Management, are cautioning investors about the IPO boom due to concerns over business quality and high valuations.
• Khemani found 95% of IPOs uninteresting, predicting many will trade significantly below their IPO price.
• Approximately half of the 333 Indian firms that debuted this year are currently trading below their offer price.
• The record demand for IPOs is diverting funds from the secondary market, creating challenges for the market to absorb the consistent supply.

Why It Matters: India's IPO market shows signs of overvaluation, risking investor capital.