India’s primary market frenzy is under sharp scrutiny as Chief Economic Adviser V. Anantha Nageswaran raises concerns that today’s IPO boom is being used largely as an exit route for early investors rather than a channel for long-term capital formation. He emphasised the need for India to build a deep and reliable bond market to fund long-horizon national priorities, instead of depending heavily on bank credit. Market experts agree the excitement around high-profile listings—like Groww’s 70% post-listing surge—may cloud judgment, urging investors to stay cautious amid steep valuations and limited long-term winners. While a few IPOs shine, many fail to sustain their high valuations. Analysts suggest focusing on fundamentally strong listed companies and evaluating IPO valuations carefully.

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