Zepto IPO Delayed Amid Valuation Concerns, Raamdeo Agrawal Calls Plans Premature
Market veteran Raamdeo Agrawal has expressed concerns over Zepto's IPO plans, stating that the quick-commerce firm may have been premature in tapping the public market.
Zepto's proposed IPO has been delayed amid concerns over the company's valuation. The quick-commerce firm had been preparing to list at a time when the sector remains one of India's most closely watched consumer internet themes.
Market veteran Raamdeo Agrawal has called Zepto's IPO plans premature, citing the company's valuation concerns. Agrawal, who is an investor in Zepto, believes that companies should only tap the public market when they are profitable or close to profitability.
According to Agrawal, public markets are all about "earnings, earnings and earnings", with companies required to report them every quarter. He noted that mutual fund investors must mark their portfolios to market daily and may therefore be reluctant to invest at a valuation that could result in a mark-to-market loss the next day.
Agrawal also highlighted the challenges of making the public market understand the underlying value of a company. He stated that "till companies are actually profitable, or very close to becoming profitable within a visible timeframe, they should not tap the public market."
Zepto's IPO will comprise a fresh issue of shares worth Rs 8,010 crore and an offer-for-sale (OFS) of nearly 11.35 crore shares by existing shareholders, according to its updated prospectus. The five-year-old company had confidentially filed its IPO papers with market regulator SEBI in December 2025 and received the regulator's approval in May this year.
**Raamdeo Agrawal on Zepto IPO**
Agrawal expressed his concerns over Zepto's IPO delay, stating that "you don't want any entrepreneur to go through this kind of pain." He added that whether his investment is a failure will be decided after 10 years, not now.
**15% returns from equities**
Agrawal also shared his views on the Indian equity market, stating that he sees 15% annual returns from Indian equities as the most likely outcome over the next five years. He expects the Indian economy to grow at 7.5-8.5%, while corporate profits could grow at 13-14%.
| Expected Growth Rate | Actual Growth Rate | | --- | --- | | Indian economy | 7.5-8.5% | | Corporate profits | 13-14% | | Indian equities | 15% |
Overall, Agrawal's comments highlight the challenges faced by companies like Zepto in tapping the public market, especially when they are not yet profitable. His views on the Indian equity market also provide insights into the potential growth prospects of the country's economy and corporate sector.
