IPO investor alert: Zerodha CEO Nithin Kamath flags how tax arbitrage game driving valuations

Zerodha CEO Nithin Kamath explained how India’s tax gap between dividends and capital gains fuels “growth-at-any-cost” behaviour among startups. He said VC-backed firms avoid profits to secure higher valuations and tax-efficient exits, warning IPO investors to stay cautious of structurally loss-driven models.