In this article, we will look into Upcoming IPOs in India 2022. Initial public offerings (IPOs) in India had a roller coaster year in 2021. New firms listed on the bourses did well for the most part, but there were a few flops, such as Paytm, at the end.
In 2021, India had a record number of companies listed on stock markets. The Reserve Bank of India (RBI) and the government took a pro-business stance, which resulted in an influx of foreign money.
Aside from that, digitalization, infrastructure, and manufacturing all experienced growth. Furthermore, the number of investors that participated increased significantly.
The high momentum is projected to continue in the following year, with some large corporations expected to be listed on markets. Here are a few upcoming IPOs to look forward to in 2022:
Life Insurance Corporation Of India (LIC)
India’s largest insurance firm and the government’s most lucrative enterprise, the Life Insurance Corporation, will go public in the fourth quarter of FY 2022. The government will sell between 5% and 10% of its ownership in the company, making it India’s largest-ever IPO.
By selling its stake in the insurance company, the government hopes to generate Rs 600 billion and Rs 800 billion. LIC is stated to have sufficient financial reserves and achieved a profit of Rs 100 billion in the first half of this year. It dominates the insurance market with a 49.8% market share, with private enterprises accounting for the remaining 50.2 per cent.
Furthermore, the government has stated that it is prepared to enable foreign investors to own 20% of LIC through the IPO. There’s also a chance that the government would change the foreign direct investment laws, allowing such investors to purchase a share without the automatic approval process.
Another IPO to look forward to in 2022 is Byju’s. In the second quarter of FY 2022, the edtech firm is projected to go public. Through the upcoming IPO, Byju’s hopes to raise $400 million to $600 million.
Byju’s talks with its bankers about a $40 billion to $50 billion value. It is currently valued at $18 billion. With support from Naspers, Tiger Global Management, Silver Lake Management, and the Chan-Zuckerberg Initiative, the education platform is commonly regarded as India’s most valuable business.
Byju’s is reportedly aiming for a profit margin of 20% and sales of Rs 100 billion in FY 2022.
Delhivery, a logistics firm, is also planning to list the stock markets in the coming fiscal year. It has already submitted a draught red herring prospectus (DRHP) to India’s Securities and Exchange Board (Sebi). Through its IPO in 2022, Delhivery hopes to generate $400 million to $500 million.
The issue size for the delivery firm would be Rs 74.6 billion, consisting of Rs 50 billion in new issue and Rs 24.6 billion in offer for sale. With the IPO, Delhivery’s valuation is estimated to increase to $5.5 billion. Times Internet (Rs 3.3 billion), Carlyle (Rs 9.2 billion), China Momentum Fund (Rs 4 billion), and SoftBank are among the existing shareholders. The latter seek to sell their stakes in the logistics platform (Rs 7.5 billion).
In September, the firm held an Extraordinary General Meeting (EGM) and distributed bonus shares to its shareholders. It plans to utilize its first public offering proceeds to finance organic and inorganic expansion strategies.
In early 2022, the cab-hailing business will debut on the stock markets. The aggregator intends to obtain between $1.5 billion and $ 2 billion in funding. If it succeeds, its valuation will rise from $12 billion to $14 billion.
Ola IPO intends to raise half of its target capital through a primary offering and the other half through an offer for sale in this IPO. Unlike many of its peer firms, Ola is profitable, with an operating profit of Rs 898 million in FY 2021. It lost Rs 6.1 billion in the previous financial year. Ola could make such a profit by decreasing costs and shrinking its employees.
Ola recently secured $500 million in a pre-IPO round and purchased GeoSpoc, a Pune-based geospatial firm.
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API Holdings, the parent company of the e-pharmacy unicorn PharmEasy, submitted its DRHP application in November 2021, with the market regulator SEBI hoping to raise as much as INR 6,250 crore via a share issue.
According to DRHP company, its shareholders currently in the company will not sell any shares during the IPO. The company is considering the possibility of pre-IPO fundraising up to INR 1,250 crore through private placement following consultation with the Book Running Lead Managers (Book managing lead for running).
The company is planning to use approximately INR 1,929 crores from the IPO net proceedings to prepay or the entire or portions of outstanding borrowings made available by it and affiliates.
About INR 1,259 Crore will be used from the unicorn health technology company to fund natural growth strategies. However, INR 1,500 crore of the net earnings will be utilized to boost growth in the non-organic sector through acquisitions and other strategic initiatives.
In 2015, PharmEasy was founded 2015 by Dharmil Sheth and Dr Dhaval Shah; PharmEasy merged with its investors, Ascent Health, to make API Holdings in 2019. The company was able to recruit three co-founders: Siddharth Shah Hardik Dedhia and Harsh Parekh.
The DRHP was filed on the 10th of November is currently in process with Capital Markets Regulator. Is IPO scheduled to go live in the markets in the first quarter of 2022?
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Apart from the four companies mentioned above, several others will go public in 2022, and OYO, PhonePe, and Flipkart are among them. The 2019 financial year will witness a lot of successful IPOs if liquidity remains high and momentum continues.
During the COVID-19 epidemic, there was a noticeable increase in the number of investors prepared to participate in impending IPOs.
Individuals from tier-2 and tier-3 cities began to join in more significant numbers, increasing the total number of investors and dealers in the market. Application, education, and reaping the advantages of stock market investment became simpler for investors all over India thanks to online tools and a plethora of applications and platforms.