Would you buy Zerodha if it gets listed?

Yes there are many reasons why someone wants to raise capital, even for a reason just that capital is available.

I am not going into the reasons, the question is about knowing what we know today, would we buy?

So the verdict by you is, yes you would buy?

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The product is nice best and has lot of trust among customer. I think zerodha coin itself has a lot of potential. I have no doubt about product.

But the problem is the market. See retail trading or even investment overall is quite small in India though it’s growing. The majority of money /wealth is flowing into real estate & to some extent gold. It’s different in US and other developed countries. So unless GOI or primarily state govt’s(who own land & make land laws) starts disrupting that like raise property taxes like 2% of actual market rate every year as states in US does, people won’t come into equity space. Added to it our education is retarded teach things backwards. Though things are changing with gen z , there are still too many dumb idiotic people in large crowds that avoid equity , investment or even LIC altogether and would simply prefer to do real estate. My projection is atleast in another 50 years the volume of people coming into retail investment will be very very less compared to majority of population, it’s not recommended to buy an equity of a broking company.

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Of course there are a lot of things.

But as the question is hypothetical one and as you have mentioned many good things, would you buy if it gets listed?

The best company in the world could be a bad buy at a bad price, and a bad company could be a good buy at a good price. :slight_smile: So this question of whether someone would want to buy Zerodha stock if listed is probably incomplete without knowing at what valuations.

I shared on social media why we weren’t raising any money last year. This was around the time there was peak interest from investors and when Robinhood was at over $60billion in valuation (today, it is at $9bil).

If I were a trader and Zerodha was a listed company, I wouldn’t invest at or near the peak of a bull market, Zerodha or any other brokerage firm. This is because broking is cyclical and highly dependent on how markets behave. So even if the CEO of Zerodha warned people about the cyclicality :smiley:, people would have ignored it, and the stock price would have mostly factored in for the best outcome for the future. This would have made the risk to reward not favourable for it to be an investment.


As always Sir, practical advise and real.

The choice of words and sentence is outright rude - just because people do not invest in Equity?. How do anyone , know anything about another individual and call them “idiotic”. When one finger is being pointed, 4 fingers are pointed at the person pointing the finger… After reading this, it feels like “Equity” is holier than the pope for select individual… laughable.

I always thought that equity is just, I repeat, just one of the avenues to invest.

Of course. I am just trying to see what members here, mostly traders of course, think of Zerodha as an investment, with whatever information, knowledge they have today.

CAMS which more or less is cyclical then, whose fortunes depend on the market.

So I guess, may be not now, but perhaps in the future, assuming that you will not say ‘never’ :grinning:

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Yes it is. One among many options, hence the small participation, along with other obvious reasons.

As stockbrokers, we ask companies to list on the exchanges and create+distribute wealth. So it will be borderline hypocritical for us not to take the route we ask others to take. :slight_smile:

Today, most of the business is brokerage revenue, which is entirely dependent on the markets. So the big issue is that we don’t have any predictability regarding revenue. Whenever we are in a position to be able to predict our future revenues better, maybe then is when we will think of going public. Companies which don’t have predictable growth+revenues generally end up losing money for most retail investors.

But that said, we don’t need capital to grow the business today, or we don’t have to do IPO to give exit to any investors. So we will also have to solve that problem, do IPO and raise capital for what. :slight_smile: Maybe some opportunity within our area of core competency will come by.


If its only for the broking business (like it is now), I wouldn’t - But there’s future potential with Zerodha AMC and others. So if that path is laid out I might.

I am sure you consider your business to be a tech business too, not just as a platform providing services for retail to trade/invest. So there will be some optionalities coming along the way, one or two may already have been in the pipeline. So I guess, the dependency on one stream may decrease in the future, and many verticals open up.

Or do like Amazon, venture into complete different businesses, start an apparel business :grin:

If the market feild as majority of people getting into equity is more , if majority of people are doing lots of investments. People are going to mutual funds, then yes zerodha is a good productive , transparent and honest bussiness to buy if listed. I believe they have potential to become number 1 broker just like how Google is number 1 for search engines

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I will buy Zerodha but not at the time of IPO/listing day. If the IPO is fairly priced then I’m not going to get the allotment. If it’s expensive then no point in applying. So I won’t even check DRHP and all the stuff
I’ll buy it during a market crash when the stock is available at 50/60/70% discount from it’s recent highs.

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I am saying plain truth. Our education is quite retarded as hell and teach things backwards. We produce a lot of b.com , m.com students , how is it that they never stepped into retail trading space at all? There are huge number of MBA finance students and grads but I don’t find them trading or even investing at all and they have no idea too. Even CA’s don’t invest and they have no idea about stock market too. There are more engineers doing trading nd investing for trading than everyone else :rofl::rofl:.

I’m a post graduate in commerce and into equity markets from the past 7 years
Just because you’re an engineer and into the markets doesn’t mean that everyone who’s into it is from engineering background

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I said the vast majority not the few . Though I am kinda curious, how well did your degree help you with understanding and helping you trade nd invest ? Did you find your degree to be useful?

It helped in understanding fundamentals better. P&L statement, balance sheet, ratios, cash flow etc etc etc. All these things were taught during Accountancy classes.
For technicals, it’s useless.

There will be a specially created category for Zerodha users whose name is Ankit, so you will be allotted in IPO :grin:

No you are not.