Zerodha’s Nikhil Kamath Discusses Promoters’ Regret on Going Public

Zerodha's Nikhil Kamath, in a podcast, revealed that most promoters he's spoken to regret taking their companies public, citing the pressures and challenges.

  • Zerodha’s Nikhil Kamath, in a podcast, revealed that most promoters he’s spoken to regret taking their companies public, citing the pressures and challenges.
  • While discussing with Nazara Technologies founder Nitish Mittersain, Kamath highlighted that nine out of ten promoters express regret about listing their companies.
  • Despite the regret expressed by many, Mittersain shared positives of going public, including increased brand visibility and credibility, as well as distancing from venture capitalists.

In a recent podcast, Zerodha’s Nikhil Kamath delved into the topic of promoters’ regret over listing their companies on the stock market. Kamath disclosed that in his conversations with various promoters, nine out of ten expressed regret about the decision to go public. This sentiment, he explained, is rooted in the challenges and pressures that come with being a publicly traded company, including quarterly performance demands and increased scrutiny.

During the podcast, Nazara Technologies founder Nitish Mittersain offered insights from his own experience of taking his company public. While acknowledging the challenges, Mittersain highlighted the positives, such as heightened brand visibility and credibility. He also discussed the benefits of distancing from venture capitalists post-listing, emphasizing the empowerment that comes with equal shareholder rights in the public domain.

Mittersain also touched upon the challenges of quarterly reporting and compliance requirements but emphasized the importance of transparency and integrity in navigating the public markets. Despite the challenges, he expressed satisfaction with the decision to go public and encouraged other entrepreneurs to focus on long-term goals rather than short-term gains.