Murthy's Outlook Towards Initial Public Offerings

Infosys co-founder Narayana Murthy talked on Friday about the company's outlook for an initial public offering (IPO) and how some start-ups see IPOs as an alternative to financing.

Murthy said the interests of everyone need to be weighed before the IPO. "I saw so many people keeping pace," Murthy said. "Before going for an IPO, think of the poorest individual investors."

He added that the market size was overvalued. Murthy attributed the "overestimation" to a lack of good market research firms that could provide accurate quotes for market opportunities.

Murthy’s comments come out when many start-ups start hiring employees to save money due to poor valuations, slowing funding rounds, and sluggish investor sentiment.

When asked about his views on improving profitability as a startup head into the funding winter, Murthy says it was unfair to answer the question, given that he was dependent on the works with a service model and exports to the market compared to current entrepreneurs in the country.