The IPO Trap

India now has over 13 crore registered investors on the NSE, and a new IPO opens almost every week. Most first-time investors apply for one of three reasons: the Grey Market Premium looks high, a YouTuber said to apply, or a friend made a quick gain on listing day. Very few have read the prospectus.

In The IPO Trap, Jayant Mundhra examines the timing of IPOs and the incentives behind them. The fastest growth in a company's life happens while it is still private. Early investors and venture funds ride that growth. By the time the company files for an IPO, they want to cash out, and the public issue is where they do it. The ordinary investor is often the person buying what they are selling.

Drawing on gripping stories, from the hysteria of the 2008 Reliance Power crash to the post-unicorn hangover of new-age tech listings such as Swiggy, the book dismantles the myths that lure retail investors into overhyped IPOs.

The book is not a list of stock tips. Jayant has written this no-nonsense guide to help investors survive the most seductive corner of the stock market. By decoding DRHPs, exposing valuation illusions, and unpacking behavioural traps like FOMO and survivorship bias, Jayant helps readers understand what lies behind an IPO. He teaches them how to spot the tricks companies use in the 12 months before listing, recognise when an IPO may be overhyped, and know when it is smarter to wait.

If you want to stop being exit liquidity and start being a rational owner of businesses, this book is your wake-up call.