Upcoming IPOs: What are they?
IPOs slated for opening in the coming weeks or months of 2022 are upcoming IPOs that filed DRHPs.
Investor demand has never been so intense as it has been in previous years for IPOs. It has been estimated that this year’s combined collection for IPOs has exceeded 100 lakh crores. Investors may see similar investor participation in upcoming IPOs with a month left before the year ends.
IPOs have had an exciting year in 2021. One REIT issue and one INVIT issue were among the 65 IPOs raising over Rs.131,000 crore. Star Health and Allied Insurance was the only IPO that did not meet its target and had to reduce its IPO size because it was only subscribed to 79%.
In 2015, Paytm’s initial public offering (IPO) was the largest in history, raising nearly Rs.18,300 crores. A total of Rs.39,000 crore was raised between four digital IPOs in 2021.
What are the prospects for IPOs in 2022?
IPO collections are predicted to reach around Rs. 220,000 crore in 2022, although it is still early days. In that market, two types of IPOs will probably dominate. The IPO of LIC will be one of the major items, with the size potentially ranging between Rs.70,000 crore and Rs.90,000 crore depending on the amount of dilution.
The digital IPOs will be another big story of 2022, with PharmEasy, Delhivery, Snapdeal, and Droom already on the horizon, and Byju’s and Swiggy currently on hold.
In April / May 2022, there will be a few IPOs on the market, although the exact dates and price bands are still to be determined. The below list is only an indicative list as of now.
LIC (Life Insurance Corporation)
As part of the IPO, the government will offer nearly 3.2 crore shares, representing approximately 5% of its stake. In total, there is about Rs. 66,000 crore to be issued, and the price band and the date of the issue have not been determined. According to LIC’s original plan, the IPO was to be opened around 11-Mar, so that it could list itself in FY22.
The conditions that led to these hopes were aggressive FPI selling, Fed hawkishness, an oil price spike, and the Russia-Ukraine war. In FY23, Rs.66,000 crore should be raised from the IPO. An allocation of 10% of the issue size will be allocated to policyholders.
National Stock Exchange
NSE, one of the world’s largest stock exchanges in terms of derivative volumes and India’s pioneer in online trading, will launch an IPO after a long delay. Regulators have granted NSE’s Rs.10,000 crore initial public offering approval. NSE may consider multiple listings on the BSE and international exchanges in accordance with existing rules.
A key player in India’s hospitality industry, one of the oldest and most successful start-ups in the digital rooms business, plans to tap the market this year to raise Rs. 8,430 crore. A lower price and lower valuation may be accepted by the company. Approximately Rs.7,000 crore of fresh issues will be offered by OYO, and Rs.1,430 crore of existing holders will offer shares.
A leading new-age logistics company plans to launch its initial public offering at Rs.7,460 crore. A total of Rs. 2,460 crore will be offered for sale, plus Rs. 5,000 crore will be a fresh issue.
In India, Delhivery provides end-to-end logistics services for most of the major e-commerce players and operates one of the largest PIN networks. Since the digital IPO performance post listing has been uncertain, the IPO has been on hold for some time.
An IPO involving an IPO for Rs.7,300 crore will be the largest local cab-hailing service in India. The decision about whether Ola Cabs will proceed with the IPO is still pending. If so, the company will determine what valuations it will use and what size it will issue.
There is a very good possibility that Ola Cabs will reduce its issue size and its valuation. In addition to its EV franchise enhancement plan, Ola Cabs is heavily investing in electric scooters.
The company behind the PharmEasy brand, API Holdings Ltd, is an online retailer and pharmacy connecting pharmacy and customer. It is one of the largest online pharmacy retailers in the world.
Online doctor consultations and prescriptions can also be obtained through the portal. Around Rs.6,250 crore is expected to be raised. A large portion of the proceeds from the PharmEasy IPO will be used to reduce the company’s debt.
An initial public offering of Bajaj Energy will comprise an initial issue of Rs.5,450 crores and a subsequent offer for sale of Rs.300 crores. Bajaj Energy plans to spend Rs.4,927 crore of the fresh proceeds on the purchase of Lalitpur Power Generation.
The valuation metrics of power companies have clearly shifted in favor of renewable power companies in the last few quarters, however, Bajaj Energy is a pure thermal energy company.
Foxconn of Taiwan’s Indian subsidiary, Bharati FIH, provides Electronic Assembly Manufacturing Services (EMS) to the Indian government. It is planned to offer both a fresh issue and an offer for sale in the Rs.5,004 crore IPO. With the proceeds from the fresh issue component, the company will pay its parent company a special dividend.
Chinese company Xiaomi Mobiles is one of Bharat FIH’s most important clients in India. Foxconn is one of Apple Inc.’s biggest outsourcing partners around the world.
The company is based in Pune and is among the top pharmaceutical companies in India. In a proposed offer for sale, the company plans to offer for sale 4,500 crores in the form of a fresh offering of 1,100 crores and an offer for sale (OFS) of 3,400 crores. Company loans will be paid off with the proceeds from the new issue.
This IPO will consist entirely of a fresh issue of Rs.3,600 crore. We intend to use the proceeds of the issue to reduce our debt, including IOCL fuel obligations and lease rentals on aircraft. According to the latest DGCA data, Go Air holds 9.1% of the domestic market share.
How to increase the chances of IPO allotment?
We are here with some of the ideas which can increase the chances of IPO allotment.
Avoid big applications
Apply via more than one account or multiple accounts for the same IPO
Bid at cut off price / higher price band
Avoid last moment subscription:
Fill the details properly
Buy parent or holding company shares