Overpricing IPOs can hurt investor sentiment for years, says Peak XV’s GV Ravishankar

IPOs should fail if the pricing is wrong. And in today’s market, where sentiment is more cautious, Ravishankar believes the era of "good IPOs at bad prices" is behind us—at least for now.

The Indian IPO market has seen its fair share of highs and lows, and if there’s one thing GV Ravishankar, Managing Director at PeakXV Partners, has learned, it’s that taking a company public is more art than science. Peak XV Partners is a venture capital and growth investment firm primarily focused on investing in companies across India and Southeast Asia.

"We've witnessed over 30 IPOs in the past 19 years, including 16 in the last five," he said at the Moneycontrol Global Wealth Summit 2025 in Mumbai, reflecting on the firm’s journey. But navigating IPO pricing, he admitted, remains a tricky business.

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Ravishankar recalled moments when investment bankers and advisors pitched a fair price, only for the market to correct sharply. “Six months later, you’re IPOing at half that price, barely making it. And yet, two years down the line, the same company might have doubled in value,” he said, highlighting the unpredictable nature of public markets.

His takeaway? An IPO isn’t the final destination—it’s just a milestone. “If you see it that way, you stop thinking of it as the moment to maximize everything,” he said. But when pricing misfires, the consequences can be long-lasting. "We've seen cases where IPOs were priced at the peak, and four years later, investors have made no money. That hurts market sentiment, retail investors, and everyone involved."

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The lessons from past cycles are clear: IPOs should fail if the pricing is wrong. And in today’s market, where sentiment is more cautious, Ravishankar believes the era of "good IPOs at bad prices" is behind us—at least for now.

"The lens is firmly on pricing discipline," he noted. “It’s in everyone’s interest to ensure a sustainable, long-term approach."