IPO Party In India: PhonePe, Meesho & Lenskart Set To Launch

From Chai Pe Charcha To IPO Pe Charcha 

The latest discussions among investors have shifted from casual tea-table chatting to serious discussions about selling out or grabbing the next big listing. Now it is all about valuations, DRHP filing dates, and listing gains in social conversations. 

In 2025, so far, 79 IPOs have been launched (up to 22 May 2025), and with each month, this number is going up¹. Here’s a quick overview of IPO investments in the past 5 years in India

Why Everyone Is Watching PhonePe, Meesho, And Lenskart?

There are reasons why investors are now talking more about PhonePe, Meesho, and Lenskart:

• Revival of Markets: The entire market has made waves with an extremely high boost in its IPO. The stock market in India, after a steady start, made a roaring entry into action. 79 companies have gone public at present, with many queued for more such events². 
• Tech-Driven Consumer Icons on the Horizon: High-profile startups are currently leading the charge:
  • PhonePe: The fintech leader, which is now India-domiciled, is well underway with the preparations for its IPO. 
  • Meesho: Shareholder approval secured for a fresh issue amounting to INR 4,250 crore. Recently, the e-commerce giant returned its corporate domicile to India. 
  • Lenskart: The eyeglass giant has already filed DRHPs with SEBI for an IPO sized around INR 2,150 crore³.
• A Wide IPO Pipeline: The frenzy does not stop at these three. An entire deluge of IPOs, from the startup to the big established players, is working its way through. Names such as Boat, WeWork India, Shadowfax, PhysicsWallah, and many more are gearing up to take the stage⁴. 

Above all, analysts and exchanges expect 2025 to be a much larger year than even the record-breaking year. BSE estimates that over 90 listings will raise around INR 1 trillion⁵.  

Why IPOs Feel Like A Bollywood Blockbuster Premiere  

IPO investing isn't a quiet game anymore. It's creating a lot of excitement in the market: 

1. The Excitement Of Listing-Day Gains 

Listing Day is where all the pyrotechnics begin. The prices can go up, giving early investors an instant win.  

Institutional players catch eyes, where returns are unsurpassable, like when SBI's INR 1.2 crore investment in NSDL ballooned into a phenomenal windfall in just three days⁶.

Another similar one, SBI's gain of 125% was registered just when JSW cement shares were yet to go live-on the back of phenomenal grey market traction⁷. 

Retail excitement runs high, too. Nearly 75% of IPOs floating from April 2021 through December 2023 gave positive returns at listing, and nearly half the bank-allotted shares would have been sold in less than a week⁸. 

A rush like this is akin to a red-carpet premiere: heady, electrifying, and full of promises. 

2. The Not-So-Glamorous Ending: Post-Listing Price Falls 

But at times, it's not just about glory. Within just one month of listing, 50% of IPOs never rise back above their listing highs⁹. 

In the year after listing, close to half stay negative. Among the top ten IPOs in India (from 2000), around 60% ended their listing day in the red with average gains in the range of under 6%¹⁰. 

It is clear: What dazzles on Day 1 struggles to maintain that momentum.

How To Actually Invest In An IPO (Without Losing Your Shirt)

You can invest in an IPO without facing a huge crash. Here's what you need: 

Before plunging into it, you must have: 

• Demat account (to hold shares)
• Trading account with a registered broker or bank 
• Your PAN number and bank account/UPI ID link for making payments 

Once this is sorted, you are set to get into the IPO launchpad.  

Decide on the Channel of Application: You have three primary routes:

1. On the broker's online platform: Log in, Go to “IPO”, Select IPO, Enter lot, price or cutoff bid and UPI ID, Submit, Approve payment mandate in UPI 
2. Via net banking of the bank: The same as the ASBA method (Applications supported by blocked amount). In this case, funds are blocked until the allotment decision is made. No immediate debit is made.
3. Offline ASBA form: Walk into the bank, fill in a physical form detailing Demat, PAN, and bid details; the Bank blocks funds and submits your bid. Keep the acknowledgement slip

Submit Your Application: Fill in accurate details: Demat ID, PAN, bid quantity, price (or cut-off price for retail investors, which makes it easier). Retail Investors can only apply for INR 2 lakh in an IPO to keep under the RII category (Retail Individual Investor). Open one application per PAN per category only; otherwise, it will be rejected.  

Payment Process: You can opt for the UPI or ASBA payment method. 

1. UPI: Quick and straightforward. You put in your application, then approve the mandate on whichever UPI app you are using (like PhonePe, Google Pay) 
2. ASBA: The money is there in your account till the shares are allotted to you or rejected. If you are allotted, it gets debited only for that extent; otherwise, it gets released.

Allotment and Tracking: A unique application number will be provided to you, which can be used to track allotment status through your broker or at the NSE/BSE portals. If shares are allotted, they will be credited into your Demat account after the block of funds is released. 

The Diversification Twist Nobody Talks About 

Some of the reasons why IPOs shouldn't dominate your portfolio are: 

1. Running With The Power Of Diversification 

Investments that are spread across many sectors and asset classes reduce unsystematic risk, which refers to risk associated with one company or industry. A mixed portfolio smoothes out volatility. In a situation where one IPO performs poorly, the performance of others or even different asset classes can bring in some stability. The different asset classes that are not market-linked and offer stable returns help your portfolio during market stress. For example, investing in corporate bonds can add stable fixed returns to your portfolio. 

2. The Risk In Over-Concentration

Investing too much in IPOs or any single segment can turn against you. These listings can be volatile, and they don't always have a clear track record. Should the market sentiment swing, the concentrated position might result in a large blow to your returns. 

3. Avoiding Over-Diversification Confusion

Ironically, too much diversification, especially without any real awareness of how certain investments overlap, may dilute returns and become hard to manage. Since a cluttered portfolio eventually works at a level of its average compositions. 

Conclusion

Once again, India's IPO market has taken centre stage with PhonePe, Meesho, and Lenskart taking the lead. The season promises potential opportunity, excitement, and possible rewards for smart investors. The rush into IPOs does not translate into instant riches, as prices were known to swing widely post-listing. Over-exposure may damage your long-term portfolio.

The ideal strategy is to combine ambition with prudence. There should be a balanced investment strategy where IPOs form just one part of the investment strategy rather than the entire game. Invest in fixed-income instruments alongside IPOs to cushion risks. Discipline and diversification are still your best allies in a market that thrives on hype. To learn more about investments and portfolio diversification, log in to Grip Invest today.

Frequently Asked Questions On Upcoming IPOs

1. Are IPOs a good investment in the short term?

Most hype IPO openings will often garner elevated returns in terms of listing gains. But that doesn't guarantee long-term performance. Less than 36% of such new-age IPOs generate alpha returns in the long term despite all the hot hype¹¹. Hence, it points to the fact that most investors chase short-term profit. 

2. What are the risks in investing in IPOs?

An IPO investment has several inherent risks: 

• Overvalued & Hype: Prices refer more to excitement than to fundamentals. There are always corrections post-listings. 
• High Volatility: Sharp price fluctuations during listing days make it easy for both opportunity and risk. 
• Uncertain Allotment: Even if applications are successful, oversubscription usually creates partial or no allotment. 
• Short Historical Data: IPOs have very little historical data, which makes accurate valuation and assessment of risks difficult.  
• Insider Lock-Ins: If promoters or early investors sell after lock-in periods, the price might drop due to surplus supply. 
• Behavioural Bias and Hype: Market euphoria by social media can develop day performance and lead to under-performance in the long run. 
• Regulatory & Scams: From legal and policy shifts to fake IPO schemes, it can bring risks from outside the market as well. 

3. Should I also diversify my investments beyond IPOs?

Yes, IPOs are naturally volatile. A very concentrated exposure can skew your risk profile. Combine IPO investments with stable and well-established assets to maintain the balance. A broad-based portfolio ideally contains 30 to 40 stocks across sectors can insulate against volatility well. You can diversify your portfolio with debt instruments too, such as corporate bonds, securitised debt instruments, and other government securities.

References:

1. Screener.in, accessed from: https://www.screener.in/ipo/
2. PL Capital, accessed from: https://www.plindia.com/blogs/ipo-market-shows-signs-of-revival-with-79-listings-in-2025-so-far/
3. The Hindu, accessed from: https://www.thehindu.com/business/Industry/lenskart-files-for-ipo-to-raise-2150-crore-in-fresh-issue/article69868354.ece
4. Times of India, accessed from: https://timesofindia.indiatimes.com/business/india-business/ipo-rush-2025-boom-to-continue-as-rs-2-58-lakh-crore-in-offers-await-market-entry-phonepe-meesho-lenskart-in-line/articleshow/122855855.cms
5. Reuters, accessed from: https://www.reuters.com/world/india/indias-bse-expects-record-breaking-ipo-run-continue-unabated-2025-ceo-says-2025-01-10/
6. Economic Times, accessed from: https://economictimes.indiatimes.com/markets/stocks/news/rs-1-2-crore-turns-to-rs-7802-crore-sbi-hits-jackpot-with-nsdl-hdfc-bank-nse-arent-far-behind/articleshow/123214389.cms
7. Economic Times, accessed from: https://economictimes.indiatimes.com/markets/ipos/fpos/sbi-strikes-gold-with-rs-78-crore-profit-in-jsw-cement-ipo-by-making-125-returns-even-before-listing/articleshow/123276909.cms
8. Economic Times, accessed from: https://economictimes.indiatimes.com/markets/ipos/fpos/banks-selling-ipo-shares-within-a-week-experts-call-for-rbi-explanation/articleshow/113057962.cms
9. Financial Express, accessed from: https://www.financialexpress.com/market/50-ipos-fall-in-a-month-after-day-1-bonanza-3610698/
10. Upstox, accessed from: https://upstox.com/news/upstox-originals/ipo/how-have-big-ip-os-performed-the-hits-misses-and-lessons-learned/article-122378/
11. Economic Times, accessed from: https://economictimes.indiatimes.com/markets/ipos/fpos/only-36-of-ipos-have-delivered-long-term-alpha-despite-hype-client-associates/articleshow/123279893.cms

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