The market for initial public offerings (IPOs) in India is turning into a feeding frenzy.
The amount of money raised in IPOs this year has reached $8.8 billion, already surpassing the totals of the past three years though it’s only August. At the current pace, 2021 would exceed the all-time record of $11.8 billion. Founders, bankers, lawyers and advisers are racing to cash in on fervent demand for fresh public offerings.
The catalyst, in a word, is Zomato Limited, the food-delivery startup went public in July and, despite deep losses and mediocre prospects for profitability, shares have soared more than 70 per cent. That has fuelled the idea that similarly profit-challenged startups could find a strong reception from investors.
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