Chasing exits, finding gravity: What India’s IPO boom reveals about investor appetite

Anuj Bhargava, MD, Lightspeed Venture Partners, a venture capital firm, says investors will pay premium valuations only for those with sustainable economics. Bhargava, whose company was one of the early backers of OYO, says the recent IPO activity reinforces the belief in the strength of the Indian public market.

“DIIs (domestic institutional investors) have emerged as the dominant force in recent IPOs, particularly over the past two years,” says Bhargava. “Their growing participation signals a structural deepening of Indian capital markets, reducing dependence on foreign institutional capital. The tech IPO landscape has evolved to focus more on profitability and predictable financial performance, and not just growth,” he adds.

While DIIs and mutual funds have been active investors, they have become wary about post-listing price corrections. For example, Paytm was trading at around ₹871 (as on June 20, 2025), against its list price of ₹1,955. Similarly, Nykaa, a beauty and lifestyle retailer, which listed as FSN E-Commerce Ventures at a 79% premium to its issue price of ₹1,085-1,125, was trading at around ₹197. On the upside, some, like Eternal Ltd (Zomato), CarTrade, and Digit Insurance, have not disappointed.