Shankar Sharma Criticizes India's IPO Market Amid Lenskart Buzz
Veteran investor Shankar Sharma calls India's IPO market the 'dumbest in history,' citing inflated valuations driven by anchor investors and retail investor bias. He criticizes the hype around companies like Lenskart, warning that many IPOs collapse post-listing, trapping investors.
Veteran investor Shankar Sharma has launched a scathing critique of India's IPO market, labeling it the 'dumbest in history' due to rampant overvaluation and investor bias. He highlights the role of anchor investors in creating artificial legitimacy for IPOs, such as Lenskart, which leads to inflated valuations. Sharma argues that retail investors are often misled by the presence of marquee names in pre-IPO rounds, resulting in a cycle where stocks collapse after listing. He warns that this 'beautiful little game' exploits anchoring bias, causing investors to repeatedly fall into the same trap. Sharma's comments come amid growing scrutiny of high-profile IPOs and the broader trend of retail participation in India's public markets.
