Why IPO stocks keep surging after listing: Zerodha CEO Nithin Kamath explains ‘short trap’

Zerodha founder Nithin Kamath highlights a technical factor driving IPO stock rallies: short deliveries and exchange auctions. Traders attempting to short IPO stocks often face short deliveries when shares hit the upper circuit, leading to auctions at significant premiums. Investors holding shares can offer them during auctions for potentially higher exits.

Why IPO stocks keep surging after listing: Zerodha CEO Nithin Kamath explains ‘short trap’
Zerodha founder Nithin Kamath highlights a technical factor driving IPO stock rallies: short deliveries and exchange auctions. Traders attempting to short IPO stocks often face short deliveries when shares hit the upper circuit, leading to auctions at significant premiums. Investors holding shares can offer them during auctions for potentially higher exits.