Negative impactIPO
'IPO Market Is In An Irrational Frenzy': Geojit's Vijaykumar Warns Investors Against Primary Market FOMO
NDTV Profit 1 hr ago·9 Sept 2026, 9:29 am
Geojit Financial Services Chief Strategist Vijaykumar has issued a warning to retail investors about the current IPO market. He describes the prevailing sentiment as an 'irrational frenzy,' suggesting that the rush to subscribe to new issues is being driven more by fear of missing out (FOMO) than by fundamental value. This behavior often leads to overpricing of shares, where the market price at listing can be significantly higher than the actual worth of the company.
For investors, this environment poses a significant risk. When demand is artificially inflated by FOMO, the subsequent listing gains can be short-lived. If the market sentiment cools or if the company's fundamentals do not justify the hype, the stock price may correct sharply after listing. This volatility can erode the capital of investors who enter the market without a clear strategy.
Going forward, it is crucial for investors to look beyond the hype. Focus should shift to the company's financial health, business model, and valuation rather than just the buzz surrounding the issue. Monitoring the grey market premiums and the quality of the IPO's anchor investors can also provide a better gauge of the stock's true potential.
Key takeaways
- Category: IPO.
- AI reads the tone as negative (potentially bearish) for the stock.
Why it matters
A routine update. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
