Is investing in IPOs less riskier than in direct stock market?

No. IPO's can be a great way to get into stocks. Some IPOs offer poor returns.

There are few risks involved in applying for an IPO.

1. Stock listing at a lower price than the issue price
2. Investor doesn't get allotment because issue is heavily oversubscribed.
3. Incorrect processing of refunds could cause delays in receiving the money back for shares that were not allocated.