“There is appetite for IPOs,” from companies as well as investors, the former Infosys chief financial officer said. “The market is hungry for fast growth IT stocks.”
Byju's, Swiggy, Zomato, PhonePe, Myntra did not immediately respond to Bloomberg queries on their plans.
Pai pointed toward interest from both global and local investors that drove the nation’s equity indexes to record highs last month. The strong performance of internet-related stocks including Indian Railway Catering & Tourism Corp. and Info Edge India Ltd. this year has also helped, he said. The former gained about 170 per cent since its listing in October.
Foreign investors have pumped about $13 billion into Indian stocks this year, set for their biggest annual inflow since Prime Minister Narendra Modi was elected in 2014, according to data compiled by Bloomberg. Domestic investment in stocks has also increased in recent years as investors have embraced mutual funds amid a lack of confidence in other assets.
Pai said that liquidity and valuations shouldn’t be concerns for companies seeking to list, as the market is “flush with money” and India investors have shown a willingness to pay up for growth stocks.