IPO Frenzy Turns Risky: Market Expert Gautam Shah Warns Of Valuation Bubble

Despite foreign investors pulling money out of secondary markets, IPOs continue to attract massive inflows, especially from retail investors. With marquee listings like Jio, NSE and other big names lined up, 2026 could be another record year for fund raising. But market expert Gautam Shah of Goldilocks Global Research sounds a strong note of caution. He calls the IPO market a clear bubble, driven by the “greater fool” theory and stretched valuations. Shah points out that nearly half of this year’s IPOs are already trading below issue price, exposing the risks of chasing hype. Instead, he advises investors to stay away from most IPOs and focus on undervalued PSU and traditional companies, which offer better earnings visibility and potential returns over the next few years.