Stockbroking firm Zerodha has received approval from the Securities and Exchange Board of India (SEBI) to operate as a merchant banker through its wholly owned subsidiary, Zerodha Corporate Advisors Pvt Ltd.
The approval follows the subsidiary’s application for a Category I merchant banking licence, marking Zerodha’s entry into investment banking and capital markets advisory services.
Mohit Mehra, Whole-Time Director at Zerodha Corporate Advisors, said the entity is expected to commence operations over the coming months. The firm plans to initially focus on equity initial public offerings (IPOs), particularly supporting new-age companies looking to raise capital through public markets.
To meet the higher net-worth requirements under SEBI’s revised merchant banking regulations, Zerodha has allocated ₹55 crore to its merchant banking subsidiary.
The move represents a strategic expansion of Zerodha’s presence beyond stockbroking and into the broader capital markets ecosystem. With its initial focus on new-age companies and IPOs, the firm is positioning itself to support businesses transitioning from private funding rounds to public-market fundraising.
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The entry of Zerodha into merchant banking also comes as India’s IPO market continues to attract strong interest from companies seeking access to public capital and investors looking for opportunities across emerging businesses.
