The National Stock Exchange (NSE) witnessed a robust IPO market this week, featuring five significant initial public offerings, including the highly anticipated Tata Technologies IPO. Nithin Kamath, co-founder of Zerodha, expressed admiration for the hassle-free listings during what he termed a “mega IPO week.”
Taking to X (formerly Twitter), Kamath highlighted the substantial activity in the IPO market, with ₹7,600 crore in IPOs blocking ₹2.6 lakh crore in bank accounts. He reminisced about how, if this were 2003, the entire process would take around 16 working days, costing investors approximately 0.5% in interest foregone, or ₹1300 crores.
Kamath emphasized the remarkable reduction in IPO listing time over the past two decades, noting the transition from T+16 to T+12, T+6, and now T+3 (approximately one week) since September 2023. Under the new SEBI regulations, IPOs are required to be listed within three working days from the bid closure. He remarked on the positive impact of these changes, stating that retail investors now continue to earn interest from their savings accounts during the IPO process.
Reflecting on the evolution of capital market regulations in India, Kamath concluded, “In almost every aspect, capital market regulations in India have improved phenomenally over the last 20 years, especially in the last five years.”
The IPO week featured the launch of Tata Group’s first IPO in 20 years, Tata Technologies IPO, alongside offerings from Gandhar Oil Refineries Ltd., Fedbank Financial Services Ltd., Flair Writing Industries Ltd., and Indian Renewable Energy Development Agency (IREDA). Investors placed bids worth ₹2.59 lakh crore, contributing to the overall ₹7,600 crore value of the IPOs.
