IPO frenzy pulling most new investors under 30 yrs, says Zerodha Founder & CEO Nithin Kamath says

Founder and Chief Executive Officer (CEO) of Zerodha Broking Limited has said that most the new investors under 30 years are entering the stock markets because of Initial Public Offering (IPO). He said this in a tweet adding that they have an added advantage of being young and less to invest.

They have the luxury of losing less and bouncing back quickly in case of mistakes. The have a hands-on opportunity to learn, Kamath said.

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Unlike the previous bull runs, most of the new investors starting especially because of IPOs this time are under 30 years. The good thing is that they are younger and have less to invest. Meaning they can learn hands-on and bounce back quicker if money mistakes are made. 1/3

— Nithin Kamath (@Nithin0dha) October 27, 2021

Historically, activity has always dropped sharply post serious market falls. Folks who have significant investments typically don't do anything in such markets. It will be interesting to see how the new young investors with small ticket sizes behave this time around. 2/3

— Nithin Kamath (@Nithin0dha) October 27, 2021

IPOs have played a huge role in attracting these users. Without UPI for IPOs, it wouldn't have been possible for non-bank brokerage firms like us.

India Stack has probably been responsible for a lion's share of disruption and innovation in India Fintech. 3/3

— Nithin Kamath (@Nithin0dha) October 27, 2021

“Unlike the previous bull runs, most of the new investors starting especially because of IPOs this time are under 30 years. The good thing is that they are younger and have less to invest. Meaning they can learn hands-on and bounce back quicker if money mistakes are made,” Kamath tweeted.

“Historically, activity has always dropped sharply post serious market falls. Folks who have significant investments typically don't do anything in such markets. It will be interesting to see how the new young investors with small ticket sizes behave this time around,” he said in a follow-up tweet.

“IPOs have played a huge role in attracting these users. Without UPI for IPOs, it wouldn't have been possible for non-bank brokerage firms like us. India Stack has probably been responsible for a lion's share of disruption and innovation in India Fintech,” the third tweet said.

The financial services company, which started operations on 15th August 2010 has over 7.5 million clients as per the information on its website.

At least two IPOs are opening this month. One is FSN Ecommerce Ventures Limited which operates Nykaa, an Omni channel play across Beauty and Fashion segments will open on Thursday. The other is FINO Payments Bank Limited which will open on Friday (29 October).

Two more IPO will be launched Next week - PB Fintech Limited and S J S Enterprises Limited.

Market regulator Securities and Exchange Board of India (SEBI) has approved Sigachi Industries Limited, which will also be launched on 1 November 2021. The red-herring prospectus is available on the NSE.