Nithin Kamath Champions More Homegrown IPOs: Ola, Unicommerce, and FirstCry Set the Stage for a Strong IPO Surge
Nithin Kamath, the founder of Zerodha, has called for more homegrown companies to list on domestic stock exchanges. He believes that these listings encourage other companies to consider initial share sales. Kamath’s comments came in the wake of the recent listings of Ola Electric, Unicommerce, and FirstCry, which have all shown varied but generally positive performances.
Kamath extended his congratulations to these companies on their successful listings, pointing out that the positive reception from investors suggests a healthy market environment. He emphasized that for the domestic markets to grow, it is essential to have more local companies going public and offering attractive opportunities for IPO investors.
He further noted a concern highlighted by Ananth Narayan of SEBI about the lack of new securities in the market. This issue is particularly significant at a time when domestic investments are increasing.
Ola Electric, despite a modest debut, has rallied by as much as 70% since its listing. Unicommerce, on the other hand, made a strong entrance on the exchanges, with its stock listing at Rs 235 on the NSE against an issue price of Rs 108. The IPO, an offer for sale of 2.56 crore shares, was overwhelmingly subscribed over 160 times, driven by substantial interest from non-institutional and institutional investors.
Brainbees Solutions, the company behind FirstCry, also made its debut with a 34% premium to the issue price. The shares then rose an additional 13% after listing, indicating strong investor sentiment. However, Shivani Nyati of Swastika Investmart advises caution, noting concerns about FirstCry’s path to profitability, its reliance on third-party manufacturers, and its negative cash flows, which require close monitoring.
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