New Delhi, Nov. 3 -- Zerodha co-founder Nithin Kamath on Monday shared some valuable insights on India's IPO market, providing an easy breakdown on how companies that prioritise growth over profitability are filling the ecosystem and how the tax system might be a silent facilitator for that.

In a lengthy post on X, Kamath explained how the tax structure in India could influence investors, espectially venture capitalists (VC).

Kamath explained that if one takes money out of a business as dividends, the effective tax rates to be paid by such investors is 52%, including 25% corporate tax and 35.5% on personal income. However, withdrawing the money through capital gains could reduce the tax significantly to just 14.95%, including cess.

"If...