Why investing in a Smallcase may be a better strategy than IPO investing?
2021 was wrecked by the Coronavirus-led pandemic that jolted even the strongest of economies. But there was a beacon that shone brightly in the financial markets – and the year became synonymous with it. Year 2021 has come to be known as the year of IPOs. Many home-grown startups and some very popular companies such as Zomato and Nykaa went public in the year. After the successful listing of Zomato on the stock exchanges, the graph of Unicorns and startups eyeing Dalal Street scaled newer heights. The India markets saw 62 companies making their way to the stock market to raise funds. The IPO frenzy jammed well with the average Indian investor for whom the picture probably looked something like this: Companies are listing on the stock exchange at a premium, and this is a fantastic way to make money in the short term via listing gains. Testimony to this is the fact that retail participation at the markets exploded in 2021. After being stagnant at 20 million for decades since the dot-com bubble burst, India’s investor population suddenly expanded by over 15 million since the pandemic.