Despite the hustle and bustle surrounding Zomato’s IPO and a slew of Indian startups poised to go public soon, billionaire investor Rakesh Jhunjhunwala has said the startup party is about to burst. He believes he can make more money from stocks in metal producers and banks than from new tech companies currently populating India’s primary market.
“I’m not going there. That party (for New Age IPOs) will eventually burst, ”Jhunjhunwala said at an event organized by Motilal Oswal Asset Management on Friday, The Economic Times reported. The comment comes at a time when companies like Paytm, Mobikwik, Zomato, and PolicyBazaar.
Meanwhile, Zomato’s mega IPO ended with a 38-fold oversubscription on Friday as institutional investors poured cash to get a cake from the hottest online grocery delivery platform. Zomato received bids for 2,751.25 crore shares against 71.92 crore shares in the offer, stock market data showed.
The initial public offering is India’s largest since March 2020.
Jhunjhunwala, dubbed India’s Warren Buffett, has been skeptical of Indian startup reviews. “Steel and iron ore prices in the international market are at record highs and companies trading these metals are expected to continue to benefit from this scenario in the short to medium term. SAIL is mainly active in steel production and therefore are also expected to benefit from this rise in steel prices. As such, the company is expected to produce strong quarterly results in the coming times that will result in a surge in SAIL’s share price, “he said recently.