Nithin Kamath Bats For More Homegrown IPOs As Market Buzzes With New Listings

Zerodha founder Nithin Kamath called for more Indian companies to go public to strengthen domestic markets. Kamath emphasised the importance of ensuring that IPO investors benefit from these listings.

"Congrats to Ola Electric, Unicommerce, and First Cry on the listing. Based on the listing, it looks like investors are happy," Kamath posted on X. "If our markets have to grow, we need more homegrown companies to list and also leave something on the table for IPO investors."

The IPOs doing well are good because they incentivise more companies to consider an IPO and attract more retail and institutional investors, according to Kamath.

"We also need more IPOs because, as Ananth Narayan, the WTM at the Securities and Exchange Board of India, 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," he said.

His comments came as India’s primary market gears up for a busy week, featuring three new initial public offerings and 12 upcoming listings, including the highly anticipated debut of Ola Electric Ltd. While, on the listings front, the three companies in the mainboard space will debut on the national bourses during the week.

According to a recent SEBI report, the number of newly listed companies surged to 272 in the financial year 2024, up from 164 in the previous fiscal. This period also saw a record number of small and medium enterprises go 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.