SpaceX IPO a 'true test for capitalism', says Uday Kotak as stock surges on debut
New Delhi, June 13
Founder and Non-Executive Director of Kotak Mahindra Bank, Uday Kotak, on Saturday described the blockbuster initial public offering of SpaceX as a "true test for capitalism," saying the company's valuation defies conventional metrics and reflects a massive bet on humanity's future.
Commenting on the listing of the Elon Musk-led company, Kotak said in a post on X, "SpaceX IPO, listing, and beyond, is a true test for capitalism."
He noted that the company's market value cannot be assessed through traditional frameworks, stating that "the valuation does not fit any traditional matrix and is a huge bet on the future course of planet earth."
Kotak said the success or failure of such a valuation would ultimately depend on how the future unfolds.
"Only time will tell whether we, the human race, have arrived into the fairy tale world we grew up in as children, or are in a mega bubble," he said.
Praising both entrepreneur Elon Musk and the ecosystem that enabled the company to grow, Kotak added, "Either ways, kudos to the man who came as an immigrant, and to the country that has allowed such boundless creativity to flourish despite all the risks it embeds."
His comments came a day after SpaceX made a stellar debut on public markets, drawing intense investor interest and becoming one of the most valuable listed companies in the world.
Shares of SpaceX surged on their market debut, opening at USD 150 against an IPO price of USD 135 and later climbing to USD 164. The rally propelled the company to become the sixth-largest US-listed firm by market capitalisation.
The IPO attracted strong demand from both retail and institutional investors as Musk pushes ahead with plans to expand artificial intelligence infrastructure into space through orbital data centres.
SpaceX raised USD 75 billion through the sale of nearly 556 million shares priced at USD 135 each, valuing the company at USD 1.77 trillion. With the listing, SpaceX joined the elite club of trillion-dollar companies and became the first US company to debut on the stock market with a valuation exceeding USD 1 trillion.
— ANI
Reader Comments
A mega bubble or a fairy tale? I think it's both. Elon Musk is a genius no doubt, but $1.77 trillion valuation for a company that hasn't even made consistent profits? Reminds me of the dot-com bubble days. Only difference is, SpaceX actually has tangible rockets and satellites. Still, I'm skeptical about orbital data centers - sounds like sci-fi, not business.
Uday Kotak's perspective is interesting because he comes from a traditional banking background. For him to call this a 'true test for capitalism' shows how revolutionary this is. But let's be honest - the US ecosystem is unmatched. From Silicon Valley to Wall Street, they have the infrastructure to support moonshot bets. India needs to build that trust if we want our own SpaceX someday.
As someone working in the space sector, I'm excited but cautious. SpaceX's technology is real - they've disrupted launch costs and proven reusable rockets. But the valuation is insane. It's like the market is pricing in 20 years of success upfront. In India, we're more conservative, but maybe that's why we haven't created a SpaceX yet. Bold bets need bold capital.
Kudos to the system that allowed an immigrant to build this! India needs to learn from this - we have brilliant minds but our regulatory hurdles and risk-averse culture stifle innovation. Meanwhile, Elon Musk goes from PayPal to Tesla to SpaceX to Twitter. The man is unstoppable. This IPO is just the beginning. 🚀
I'm a cautious investor, and this is pure speculation
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