Home / News / India /  What will be appetite of retail investors in next round? Zerodha's Nikhil Kamath


Zerodha's co-founder Nikhil Kamath on Friday questioned how would retail investors react to the next round of initial public oferings that are coming up in December. He said that after retail investors largely underperformed in the last few rounds of startups that have gone public. 

In his Linkedin post, Nikhil questioned what would retail investors buy in what they know, like in Zomato, which has the highest amount of retail money. 

"Retail investors in startups have largely underperformed; what do you think the appetite will be for the next round of startups that IPO ? Do we buy what we know, zomato has the highest amount of retail money, and we order food more often than insurance/cars/cosmetics...," he said in his LinkedIn post..

Nikhil shared a infograph of InvestyWise which showed data on major startups that have gone public and their retail investors. 

As per the data,  Zomato had highest amount of retail money and retail investors. As of September 30, 2022,  17,99,257 retail investors held 6.12 per cent stake in the company. While their holdings were valued to the tune of 3,389.9 crore as of December 6.  

Zomato is currently trading at 64.15 on BSE was at issue price of 76. On a YTD basis, the stock has corrected by over 54%.

The second in the list would be Paytm parent One 97 Communications, where 11,04,571 retail investors owned about 6.37 per cent stake in the company as of September 30, 2022, while their holdings valued around 2,126.4 crore as of December 6. 

Paytm parent One 97 Communications has seen one of the biggest drops in its market cap since its IPO as the stock has lost 65% at price band of 2080 to 2150 per share. It is currently trading at 544.75 on BSE.

Fashion e-retailer Nykaa was the third on the list with 3,88,135 retail investors holding around 2.59% as of September 30, 2022. Their holdings were valued at around 2,126.4 crore as of December 6, 2022.

Others on the list were -- CarTrade, PB Fintech, Easy Trip, and Delhivery.

Earlier this week, Zerodha's co-founder Nikhil Kamath stated that the impact of retail investors is smaller than most think. He cited a BQ Community research data, which revealed that Indian-listed firms are majorly owned by private promoters and foreign investors. Retail investors' ownership is also lesser than mutual funds, but higher than government and insurers.

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