Zerodha Gets SEBI Nod: What New-Age IPOs Mean for You
Zerodha has received SEBI's merchant banking licence through its subsidiary. This lets it manage IPOs and fundraising for startups — which could soon mean more new-age company listings available to everyday retail investors.
India had 91 IPOs in FY25 — more than one every 4 days on average.
What Zerodha's new IPO role could mean for your investment options
Key Takeaways
Always download and read the DRHP (Draft Red Herring Prospectus) on SEBI's website before applying to any IPO — it lists every major risk factor.
Check the grey market premium (GMP) as a sentiment signal only — never apply to an IPO purely because the GMP looks attractive, as it is unofficial and unregulated.
Use your UPI-based ASBA facility through your bank or broker to apply for IPOs — your money stays in your account and earns interest until allotment.
Zerodha has received SEBI's merchant banking licence through its subsidiary. This lets it manage IPOs and fundraising for startups — which could soon mean more new-age company listings available to everyday retail investors.
Here's what happened: Zerodha received a Category I merchant banking licence from SEBI through its wholly owned subsidiary, Zerodha Corporate Advisors Pvt Ltd.. The firm plans to focus on equity capital market transactions, particularly IPOs for new-age and startup companies once operations are fully set up.. India's IPO market has seen record retail participation in recent years, with crores of applications filed for popular issues across BSE and NSE..
What you should do: Always download and read the DRHP (Draft Red Herring Prospectus) on SEBI's website before applying to any IPO — it lists every major risk factor.. Check the grey market premium (GMP) as a sentiment signal only — never apply to an IPO purely because the GMP looks attractive, as it is unofficial and unregulated.. Use your UPI-based ASBA facility through your bank or broker to apply for IPOs — your money stays in your account and earns interest until allotment..
If a merchant banker is also your stockbroker, check the IPO prospectus for 'related party' disclosures — SEBI requires them, and they reveal potential conflicts of interest.
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This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
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