This episode of The Core Report explores the lessons from the world's biggest IPO, focusing on SpaceX's dramatic post-IPO sell-off and its implications for upcoming IPOs. It also delves into India's monsoon recovery, the fading near-term risks for the rupee, and where analysts see value in the telecom sector ahead of Reliance Jio's IPO. Finally, it pays tribute to Alan Greenspan, the late Fed chairman who coined the term "irrational exuberance."
Summarized by Podsumo
Despite a blockbuster debut, SpaceX shares have fallen 6% and most gains from the first two days have been wiped out, highlighting the risks of aggressive IPO pricing that leaves little on the table.
India's monsoon season has revived after stalling, with rains expected to move into central regions, boosting summer crop sowing and providing relief from a heat wave.
Analysts see high value in the Indian telecom business due to a near-duopoly structure (Jio and Airtel), high entry barriers, and improving free cash flow, with 80-85% of Jio's valuation tied to its core telecom business.
Alan Greenspan, the former Federal Reserve chairman who popularized the term "irrational exuberance," has died at the age of 100.
India's FDI inflows face structural challenges as global FDI volumes shrink due to supply chain shifts toward resilience, while FPI flows remain fragile, especially with the US Fed potentially hiking rates.
"How do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade? — Alan Greenspan"
"We cannot rely very strongly on the fact that we will get FPI flow... structurally, funding sources are no longer as durable and resilient as they used to be maybe five years ago. — Garima Kapoor, Chief Economist at Elara Capital"
"The real driver has been increase in ARPU... with their huge customer base and they continue to add 4 to 5 million per quarter. But the real driver has been increased ARPU. — Piyush Pandi, Senior VP at Centrum India"