Zerodha has received approval from the Securities and Exchange Board of India (Sebi) to enter the investment banking business through its subsidiary, Zerodha Corporate Advisors. The approval allows the company to operate as a Category-I merchant banker and undertake services including managing initial public offerings (IPOs), follow-on issues and other corporate finance and issue-related activities. Zerodha had applied for the licence in April, with its merchant banking arm planning to focus initially on equity capital markets. Whole-time director Mohit Mehra said the company aims to bring its low-cost, no-hard-selling approach from broking to the investment banking space and expects to focus mainly on mid- to large-sized issues. The move comes as Zerodha continues to diversify beyond traditional broking into asset management, lending and other financial services amid regulatory changes affecting broker revenues. The company reported a profit after tax of Rs 4,283 crore and revenue of Rs 7,464 crore in FY26, while its core broking income declined from previous years. Zerodha’s entry into merchant banking also comes amid renewed activity in India’s IPO market, with August recording 22 issuances and around Rs 22,000 crore raised through mainboard IPOs. The new business marks another significant expansion for the brokerage as it seeks to build a broader presence across India’s financial services sector.
Zerodha to Manage IPOs, Follow-on Issues Under New Merchant Banking Arm
