Investors flock to shares of IPO-bound companies, seeking higher returns

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₹790 to ₹900, SBI AMC from ₹1,650 to ₹2,300 and Nayara Energy from ₹415 to ₹700, Patwari said, highlighting data from Wealth Wisdom of India's website. “The PRIMEX 40 Private Market Index of India has gained almost 65% in a year, compared to a 26% increase in the S&P BSE Sensex and 30% in the Nifty 50 as of 29 August," he said. PRIMEX 40 is Wealth Wisdom's proprietary index, which includes companies in the private market that are leaders in their respective sectors.

The most recent was NSE’s unlisted stock soaring to over ₹5,500 from ₹3,200 in February this year primarily due to limited supply and a scarcity of sellers. The board of directors of NSE recently approved a proposal to seek a no-objection certificate from market regulator Securities and Exchange Board of India (Sebi), marking a significant step towards an IPO. “So, it’s not just NSE, but the primary interest is in pre-IPO opportunities, and there certainly is a money-making opportunity there," said Manish Sonthalia, director and chief investment officer at Emkay Investment Managers.

He said family offices and alternative investment funds are increasingly looking to invest in private equity, pre-IPOs and startups. Ultra-high-net-worth individuals and portfolio managers, with their growing risk appetite, are also showing significant interest in the unlisted space. “Out of the 10,500 family offices globally, around 300 are in India and about 10% of these Indian family offices invest about 53% of their capital in startups," said Vikaas M.

Sachdeva, managing director of Sundaram Alternate Assets Ltd. He said family offices have an affinity to invest in financial services and technology companies in the public markets. Recent activity in the startup landscape has