In the year that went by, the Indian markets saw multiple IPOs being released. No wonder 2021 is known as one of the busiest years for stock market IPOs. Take, for instance PAYTM, which is known to have offered one of the biggest IPOs in India, raised substantial funds in 2021.
The total number of IPOs released for the year 2021 is estimated to have raised over Rs. 1 lakh crores through 62 IPOs. Many investors could get some shares in these IPOs, but many missed out on joining the IPO race. For those who are looking forward to planning their investments in 2022, here’s a look at some of the top upcoming IPOs slated to release in January 2022.
Top expected IPOs in the year 2022
The table below contains the list of some of the top IPOs that are expected to hit the primary markets in January 2022. Investors can have a look at the company details, IPO size, and business line to get a quick glimpse of the upcoming IPOs:
|Name Of The Company||IPO Size (Approx.)||Business Line|
|LIC India Ltd.||Rs. 80,000 Crores||LIC is India’s largest and oldest insurance provider trusted by millions across the country.|
|Delhivery||Rs. 7,460 Crores||Delhivery is a supply chain solutions provider that offers services to various e-commerce marketplaces, SMEs, direct-to-consumer e-tailers, etc.|
|Ola||Rs. 7,300 Crores||Ola is India’s first ride-hailing app that dominates nearly 60% of the market share offering services across 100 cities in India and with close to 15 lakh driver accomplices onboarded.|
|PharmEasy||Rs. 6,250 Crores||PharmEasy is one of India’s largest digital platforms offering healthcare-related services. The company offers services including radiology and diagnostic tests, doctor consultation, delivering protocols for treatment, etc.|
|Bajaj Energy Ltd.||Rs. 5,450 Crores||Bajaj Energy Ltd. is one of India’s largest thermal generation companies featuring a robust financing track record. It has been consistently developing and operating thermal plants in India.|
|Emcure Pharmaceuticals||Rs. 4,500 Crores||The company engages in developing, manufacturing, and marketing of pharmaceutical products.|
|Jana Small Finance Bank||Rs. 2,000 Crores||Jana Small Finance Bank is a financial provider mainly operating in the country’s semi-rural and rural areas. The bank aims to penetrate through its branch network in areas that are not covered by the large financial providers.|
|MobiKwik||Rs. 1,900 Crores||MobiKwik is a fintech company known to be one of India’s largest mobile wallet service providers. The company enjoys substantial dominance in the online payments segment in India.|
|Arohan Financial Services||Rs. 1,800 Crores||This company offers microloans to women for funding their small business ventures.|
|Northern Arc Capital||Rs. 1,800 Crores||This non-deposit non-banking NBFC registered with RBI has been operational for over a decade. The company extends credit directly and indirectly to businesses and households that are under-served.|
|Ixigo||Rs. 1,600 Crores||Ixigo offers travel solutions in the Indian market through flight, train, bus, and hotel bookings.|
|Penna Cement||Rs. 1,500 Crores||Penna Cement is a leading cement production company featuring a strong brand recall across southern and western India.|
LIC India Ltd.
LIC India Ltd is slated to debut with a large-sized IPO in the stock market in Jan’22. Here are the details:
- LIC enjoys a substantial 69% market share in the Indian insurance market
- It has a fund base of Rs. 290 crores
- With an issue size expected to be around Rs. 80,000 – Rs. 1,00,000 crores, this IPO is expected to be one of the biggest in India.
- The expected price band of this issue may be between Rs. 400 – Rs. 500.
Through its IPO, Delhivery, aims to raise approximately Rs. 7,460.
- Delhivery has lately been in the news for grabbing the top-stop as the country’s logistics firm, beating Blue Dart from a revenue standpoint.
- In its Draft Red Herring Prospectus, the company stated that it plans to fetch around Rs. 5,000 crores via fresh issuance of shares and Rs. 2,460 is to come through Offer For Sale.
- The company aims to achieve a post-listing valuation of $6 -$6.5 billion.
Ola is currently valued at over $3 billion.
- The ridesharing company has raised a significant amount of funds from Warburg Pincus and Temasek in a pre-IPO round.
- As per a recent announcement, it aims to foray into the electric vehicles’ market to further extend its business scope.
- To manage its IPO smoothly, the company has tied-up with the likes of Kotak Mahindra Bank Ltd. and Citigroup Inc.
This health tech start-up filed its Draft Red Herring Prospectus in November’21.
- It plans to raise Rs. 6,250 crores through the IPO.
- PharmEasy aims to use the IPO proceeds primarily for debt repayment.
- As per the DRHP, it also aims to acquire an additional stake in Aknamed, which is a hospital supply chain management company, using the IPO proceeds.
Bajaj Energy Ltd.
As per the DRHP filed by Bajaj Energy Ltd. with SEBI, the company aims to raise nearly Rs. 5,450 crores through the IPO.
- Out of this, Rs. 5,150 crores will be raised through a fresh share issue.
- Remaining Rs. 300 crores will be raised through OFS.
- The IPO proceeds will be utilised for acquiring Lalitpur Power Generation Company at Rs. 4,927 crores.
- Remaining proceeds will be used to meet general expenses.
Emcure Pharmaceuticals will join the primary market through an IPO of Rs. 4,500 crores.
- The company’s IPO is slated to have a fresh share issuance of Rs. 1,100 crores.
- An offer for sale of 18,168,356 equity shares is also expected.
- The company will use the IPO proceeds towards debt payment and for meeting general corporate requirements.
Jana Small Finance Bank
As per the DRHP filed by the bank, its IPO will come with an issue size of Rs. 2,000 crores.
- An offer for sale of Rs. 1,300 crores is expected.
- A fresh issuance of equity shares is expected to be Rs. 700 crores.
- This issue will be organised and executed by merchant bankers, including Axis Capital, SBI Capital Markets and ICICI Securities.
As per its DHRP, MobiKwik will be entering the primary market through an IPO of Rs. 1,900 crores.
- It will consist of a fresh issue of Rs. 1,500 crores.
- OFS of Rs. 400 crores is expected.
- The main objective of the IPO is to arrange funding for various company initiatives to attain organic and inorganic growth.
Arohan Financial Services
Located in eastern part of India, Arohan Financial Services is the country’s largest NBFC.
- With an IPO issue, the company aims to raise Rs. 1,800 crores.
- This will come with a fresh share issuance of Rs. 850 crores and an offer for sale of approximately 2.7 crore equity shares.
- The IPO’s book runners will be ICICI Securities, Edelweiss Financial Services, Nomura Financial Advisory & Securities and SBI Capital Markets.
Northern Arc Capital
- Northern Arc Capital’s IPO issue will have an OFS of nearly 36 lakh equity shares and a fresh issuance of Rs. 300 crores.
- Before it files a DRHP with the market regulator, the company plans to offer these shares via a private placement against cash consideration of Rs. 150 crores.
Some of the ixigo’s competitors include Yatra, Easemytrip and Booking.com.
- The company’s IPO issue will be of Rs. 1,600 crores, including a fresh issuance of Rs. 750 crores and an OFS of Rs. 850 crores.
- With the IPO, there is expected to be a partial exit from the company’s investors Micromax and Elevation Capital.
- The company aims to use these funds for organic and inorganic growth and towards general corporate purposes.
- As per the DRHP filed with the market regulator, Penna Cement’s public issue will come with a fresh share issuance of Rs. 1,300 crores and an OFS of Rs. 250 crores.
- The company aims to use the IPO proceeds towards debt repayment and meeting capital expenditure.
With this list of upcoming IPOs slated to hit the primary markets in January 2022, investors can be well-prepared to make the most of the investment opportunities in some of the best growth companies. To be prepared for an IPO investment, investors should be ready with an online trading and Demat account with a registered stockbroker.
IPO is short for initial public offering. It is a process through which a privately owned company can list its shares on a stock exchange. This allows companies to make their shares available for buying and selling to the general public.
To invest in an IPO, an investor must have a Demat and trading account. One can fill the IPO application form through the stock exchange websites or via a registered stockbroker.
IPO investments do carry some level of risk, especially when it comes to company valuation and its after-effects on the stock prices in the long run. Therefore, investors must carry out due diligence before selecting an IPO for investment.
You can sell IPO shares on or after the start of a normal trading session on listing day.
IPO shares are generally allotted within one week post the allotment date. In effect, one can expect shares to be allotted one week from the initial intimation of IPO allotment after an application has been made.