Won’t invest in over-valued IPOs: Zerodha’s Kamath
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What happens when an IPO frenzy sucks out $3.7 billion (₹27,417 crore) in just six months? The answer according to Nikhil Kamath, co-founder, Zerodha and True Beacon, is—collateral damage. Not just for the secondary market but also retail investors. “When an IPO is subscribed 40-50 times, while it might sound like a good thing in the news, a certain amount of money has to get blocked for every single person who has subscribed. That liquidity is going away from a market that is already strapped for liquidity,” says Kamath in an interview to Fortune India.
October 2025
As India’s growth story gains momentum and the number of billionaires rises, the country’s luxury market is seeing a boom like never before, with the taste for luxury moving beyond the metros. From high-end watches and jewellery to lavish residences and luxurious holidays, Indians are splurging like never before. Storied luxury brands are rushing in to satiate this demand, often roping in Indian celebs as ambassadors.
It’s not just liquidity that rankles the 34-year-old and India’s youngest billionaire but the fact that retail investors are getting allured by listing gains. Kamath feels that in a majority of IPOs, retail investors will be left holding the can. “IPOs are, typically, a time when all savvy investors are offloading what they bought historically to the retail public of the country.”
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