New Delhi, Oct. 6 -- As the Indian stock market witnesses a fresh wave of IPO filings and record oversubscriptions, investors are rushing to participate in what many are calling the biggest IPO frenzy in years. However, Devina Mehra, Founder and Chairperson of First Global, has urged caution, highlighting why blindly chasing IPOs during a boom can hurt investors more than help them.

Mehra points out that IPOs tend to hit the market when sentiment is favourable because that is when companies can command the highest valuations.

"It almost never makes sense to invest in IPOs when there is a boom in the space. The reason? Most IPOs at that time will be overpriced to take advantage of favourable market conditions," she says.

The beneficiari...