Niket Shah: IPO supply to continue despite weak post-listing performance

• IPO supply is not expected to slow down soon, despite 70% of recent listings trading below their initial prices, according to Niket Shah of Motilal Oswal AMC.
• IPO investing has become challenging, with few listings delivering significant returns, as investors prioritize high-growth potential over established profitability.
• The market currently favors loss-making companies projecting high future revenues over profitable businesses with steady growth.
• A significant portion (60%) of the nearly Rs 2 lakh crore raised through IPOs has been via Offers for Sale, representing exits by existing shareholders rather than capital for company growth.

Why It Matters: It warns investors about high risks and poor returns in the current IPO market.