'Markets below 20x PE with earnings visibility improving is rare': Avendus’ Apurva Sahijwani

• Entrepreneurial confidence in India remains strong despite market volatility
• Avendus-Hurun U40 list features 201 entrepreneurs with USD 357 billion in value
• Private wealth creation and capital deployment continue across multiple sectors

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Indian equities have entered 2026 on a note of volatility, with heightened scrutiny over IPO valuations and promoter exits. Yet, new data from Avendus Wealth and Hurun India’s latest U40 list suggests that entrepreneurial confidence in India remains robust, pointing to a private-to-public capital pipeline that is not stalled, but reshaping.

Speaking at the launch of the Avendus-Hurun U40 list, Apurva Sahijwani, MD & CEO of Avendus Wealth Management, highlighted the unusual market environment.

"I don’t remember the last time we saw markets below 20x earnings while earnings visibility was actually improving," Sahijwani said. "Investors risk misreading this as weakness when it’s largely a repricing."

The U40 list, part of Avendus-Hurun’s Uth Series 2025, features 201 entrepreneurs aged 36–40, leading enterprises collectively valued at USD 357 billion (Rs 31 lakh crore) and employing over 4.43 lakh people — nearly one-eleventh of India’s GDP. Notably, 83% are first-generation founders, underlining the rising dominance of self-made leadership in driving India’s growth story.

Sectoral trends in the list provide insight into where capital and innovation are converging: software products and services dominate with 40 entrepreneurs, followed by healthcare (18), transportation & logistics (16), and financial services (15). Funding priorities are strategic: 29% of capital is directed toward product development and expansion, 27% toward market and geographic growth, with the remainder allocated to R&D, talent acquisition, capex, brand building, and other initiatives.

"This isn’t wealth being created in one sector or one cycle," said Anas Rahman Junaid, founder and chief researcher at Hurun India. "Entrepreneurs are scaling across industries, deploying capital strategically and strengthening governance ahead of public listings."

While IPO headlines have focused on high offer-for-sale (OFS) components, Sahijwani emphasized that this often reflects private equity exits rather than founders abandoning their ventures.

"A significant part of OFS is private equity monetisation," he noted. "Founders may take partial liquidity, but they continue to run and expand their enterprises."

Junaid added that promoters frequently use high-cost private credit to buy out exiting investors prior to IPOs — a move signaling conviction rather than opportunism.

Family offices are increasingly acting as a bridge between private and public markets, backing companies during scale-up phases and professionalizing governance. Next-generation leaders are institutionalizing ownership structures and embedding sustainability practices, influencing valuations and investor confidence even before public listings.

"The private market is no longer peripheral for family offices," Sahijwani said. "They’re engaging early, understanding businesses and backing them strategically."

Despite the volatility at the start of 2026 and caution in the IPO market, these signals indicate that entrepreneurial confidence and capital deployment remain robust. Companies may be delaying IPOs or structuring exits carefully, but private wealth creation continues across multiple sectors and geographies.

"When valuations are below 20x and earnings visibility is improving, it’s a rare combination," Sahijwani said. "Investors shouldn’t mistake short-term volatility for a breakdown in India’s growth story."