Indian IPO market thriving, no evidence of excesses in markets, says former SoftBank exec

Alok Sama, former CFO of SoftBank Group, has expressed confidence in the resilience of India’s IPO market, which he believes remains insulated from some of the excesses that have plagued global markets in recent years.

“The Indian IPO market seems to be thriving right now,” he told CNBC-TV18 during an interview, emphasising that its growth is largely driven by domestic investors, a trend he sees as healthy. "I haven’t seen any evidence of excesses in the Indian market."

The former Softbank executive added that the excesses of the 2021 market surge were a product of "easy money." In particular, he pointed to the widespread optimism around tech stocks and venture capital, which inflated valuations across the board.

“There was an excess across the boards, markets," Sama said. "It takes a lot of humility to make a statement that I am ashamed of the elation I experienced."

The conversation then shifted to AI, where Sama made a compelling case for the transformative potential of the technology. “AI is existential,” he said, adding that "every company has to evolve with it.” While he acknowledged the incredible promise of AI, he also sounded a note of caution regarding inflated valuations in the space.

“I’m a little wary of stratospheric valuations in AI," Sama noted, referencing some of the astronomical market caps of companies riding the AI wave. He pointed to the disconnect in the public market regarding AI company valuations. "I think there is a bit of a fortunate disconnect in the public market with respect to AI. It doesn't feel like a bubble," he said.