Despite the frenzy around Zomato IPO and a slew of Indian startups lined up to go public soon, billionaire investor Rakesh Jhunjhunwala has said that the startup party will burst soon. He believes that he can make more money investing in shares of metal producers and banks than on new-age technology companies that are swarming the Indian primary market currently.
“I don’t go there. This party (in new-age IPOs) will pop sometime,” Jhunjhunwala said at an event organised by Motilal Oswal Asset Management on Friday, reported The Economic Times. The comment comes at a time when companies like Paytm, Mobikwik, Zomato and PolicyBazaar.
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Meanwhile, Zomato's mega IPO ended with a bumper 38 times oversubscription on Friday as institutional investors poured money to get a pie of the hottest online food delivery platform. Zomato got bids for 2,751.25 crore shares against 71.92 crore shares on offer, stock exchange data showed.
The IPO is India's biggest since March 2020.
Dubbed India's Warren Buffett, Jhunjhunwala has been, but, skeptical of Indian startup valuations. "Steel and iron ore prices in the international market is at record high and companies dealing in these metals are expected to continue getting benefit of this scenario in short-term to medium-term time-horizon. SAIL is mainly in steel manufacturing and hence they are also expected to get benefit of this price rise in steel. So, in the upcoming times, the company is expected to deliver strong quarterly numbers leading to rise in SAIL stock price," he had said recently.
