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Zerodha co-founder and CEO Nithin Kamath
Zerodha co-founder and CEO Nithin Kamath, in a recent post on X (formerly Twitter), congratulated Ola Electric, Unicommerce, and First Cry on their successful listing.
"Congrats to Ola Electric, Unicommerce, and First Cry on the listing. Based on the listing, it looks like investors are happy," Kamath wrote.
Congrats to Ola Electric, Unicommerce, and First Cry on the listing. Based on the listing, it looks like investors are happy 😉
— Nithin Kamath (@Nithin0dha) August 13, 2024
If our markets have to grow, we need more homegrown companies to list and also leave something on the table for IPO investors.
IPOs doing well are…
He emphasized the importance of more homegrown companies going public to ensure the growth of the markets and to provide opportunities for IPO investors.
Kamath pointed out that successful IPOs not only incentivize more companies to consider going public but also attract both retail and institutional investors.
"If our markets have to grow, we need more homegrown companies to list and also leave something on the table for IPO investors," he said.
Kamath highlights the need for more IPOs
He further highlighted the need for more IPOs, especially in light of concerns raised by Anantha Narayan, the WTM at SEBI, regarding the current supply of new securities.
Kamath noted that this issue is becoming increasingly significant as domestic capital flows continue to rise.
"We also need more IPOs because, as Ananth Narayan, the WTM at SEBI, recently pointed out, we seem to have a problem with the supply of new securities. This is a problem at a time when domestic flows are increasing," Kamath added.
Surge in listed newly listed companies
According to a SEBI report, the number of newly listed companies surged to 272 in the financial year 2024, up from 164 in the previous fiscal year. This period also saw a record number of small and medium enterprises going public.
Mainboard IPOs nearly doubled, reaching 76 in 2023–24, with a median issue size of Rs 597 crore, slightly down from Rs 635 crore in 2022–23.
Netizens reaction
The post was first shared on August 13, and since then, it has garnered over 100,000 views.
While many people took to the comments section to share their opinions, some users asked about Zerodha's IPO, with one stating, "Walk the talk, my friend. List, Zerodha."
Zerodha listing when
— Stocktwits India 🇮🇳 (@StocktwitsIndia) August 13, 2024
Go global, Do IPO!
— Atul Mehra | Enterprise AI (@MehraAtul123) August 13, 2024
Let’s do it.
"We have serious issues with supply, more and more companies need to list to satiate the crazy demand. If supply remain subdued, valuations will be through the roof and which is dampener for healthy market in long term," a user wrote.
"but we are in an IPO boom over the last two years like never before . but as always lot of dubious IPOs if we the stock only goes up for 3 months and then tanks or stagnates," another added.
Kamath's view on Zerodha IPO
Nithin Kamath shared his views on Zerodha's IPO in a post on the tradingqna.com forum.
"The philosophy with which we work, hmmm… IPO doesn’t work, I think. Setting revenue targets and chasing them down etc. But that said, not doing an IPO makes us sound like a hypocrite when we ask everyone else to do so," he said.
Kamath said the team is focused on building businesses like Zerodha Capital, Zerodha Asset Management, and more.
"Maybe in the future, when they all significantly can add revenue, maybe then. Broking only has 0 predictability and loads of regulatory risk. We don’t want to even think of IPO unless there is predictability in terms of revenue," he added.