Zerodha Unit Gets Merchant Banking License as IPO Market Heats Up
· Business · Bloomberg, Economic Times
Zerodha's merchant banking arm secured a license from the Securities and Exchange Board of India (SEBI), positioning the Bengaluru-based brokerage to undershare stock listings. The unit, backed by billionaire co-founder Nithin Kamath, becomes a direct competitor to established merchant bankers handling IPOs for Indian companies. The entry comes as India's primary market sees a surge in activity, with retail investors and new-age companies flooding exchanges. Zerodha is India's second-largest broker by active clients, with a user base built largely through its discount trading platform.
Why it matters
Indian retail investors and companies heading to the bourses now have another heavyweight handling IPOs, which could pressure fees and broaden access. For Zerodha, the license lets it capture revenue beyond brokerage commissions as India's listing pipeline keeps expanding.
Read the original report — Bloomberg
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