IPO Update: The Major IPOs to Look Out for in 2022
In the previous article, we talked about few IPOs to look out for in 2022. Continuing that, in this article, we will talk about few more companies which are planning to hit the primary market with their initial public offering.
Domestic start-ups will continue to offer their major issue for investors in 2022, following the success of Zomato, Nykaa, and PB Fintech. This year, Oravel Stays (OYO), Delhivery, and PharmaEasy will be in the spotlight as they seek to raise Rs 22,150 crore through IPOs. The bulk of start-up IPOs, on the other hand, has been mega-sized issues, as they allow a significant number of existing investors and promoters to sell their share.
So let’s have a look at them:
For Fiscal year-21, Delhivery is one of India’s largest and fastest-growing fully integrated logistics services companies. It offers a comprehensive range of logistics services, including express package delivery, heavy products delivery, PTL (partial truckload) freight, TL (truckload) freight, warehousing, and supply chain solutions, among others.
The IPO’s offering size, according to reports, is INR 7,460 crore. The IPO’s main issuance will be INR 5,000 crores. Shareholders will make a proposal for the company worth INR 2,460 crore. Among the key shareholders selling in the IPO are China Momentum Fund (Deli CMF), Carlyle, SoftBank, and Times Internet.
Oravel Stays Ltd, OYO‘s parent firm, quickly became a hotspot for Indian travelers due to its simple hotel booking and stay options. In 2020, the company is expected to go public. It’s yet another startup that has achieved unicorn status. The firm has been focused on redefining the short-stay housing industry since its founding in 2012, and has developed a unique two-sided technology platform aimed at thoroughly addressing key pain points for both its Patrons on the supply side and Customers on the demand side.
The company’s platform currently has 157,344 stores from over 35 countries. Employees and ex-employees of the company have recently purchased about 3 crore shares of the company as it prepares to go public.
Le Travenues Technology Ltd., which manages the travel platform Ixigo, is planning an initial public offering to garner Rs 1,600 crore. The initial public offering would include a fresh issuance of shares worth Rs 750 crore and an offer-for-sale of equity shares worth Rs 850 crore by existing shareholders. It provides travel utility products and technologies, such as train PNR status and confirmation predictions, train seat availability notifications, train running status alerts and delay forecasts, and so on, in addition to being a travel platform.
PharmEasy, a pharmaceutical platform firm, operates in India’s main cities. It is also expected to be available to the general public, as API Holding, PharmEasy’s parent company, has filed a DRHP with the SEBI for an IPO. Through a fresh share offering, the company hopes to raise Rs 6,250 crore.
According to the IPO, the funds will be used to reduce or settle an existing debt of Rs 1,929 crore, support organic growth efforts of Rs 1,259 crore, pursue inorganic growth through acquisitions, and fund other strategic projects worth Rs 1,500 crore. The CAIT (Confederation of All India Traders) has written to India’s market regulator, SEBI, urging that PharmEasy’s (IPO) be dismissed, among other things.
Snapdeal Ltd., an Indian e-commerce firm funded by SoftBank Group Corp., is a name that everyone knows. The startup has filed preliminary paperwork with SEBI for an initial public offering, following a slew of other digital companies looking to list on stock exchanges amid a record-breaking stock market rally.
The company aims to raise INR 1,250 crore through the issuing of additional shares, according to its DRHP filed with the SEBI. Up to 30.77 million secondary shares will be sold by SoftBank and other present owners. It is one of the most anticipated initial public offerings (IPOs) to hit the stock market this year.
Ola is a cab-hailing service founded by Bhavish Aggarwal in 2010 to compete with Uber in global countries. Ola has raised roughly $4 billion since 2010, and the projected IPO is expected to be valued at $8-9 billion. After experiencing pandemic revenue losses and lockdowns, the company went on a growth frenzy, introducing new verticals.
Ola Cars, the company’s second-hand vehicle sale platform, was one such distinct area. In addition to its cab-hailing business, it also includes auto rental and food delivery activities. Ola Electric was formed last year, and the company became an OEM, making electric scooters. The company released two e-scooters in the Indian market, making it India’s most anticipated IPO.
Swiggy is India’s largest online food ordering and delivery platform, operated by Bundl Technologies Private Limited. Swiggy was founded in July 2014 and is situated in Bangalore. As of September 2021, it operates in 500 Indian cities. Apart from meal delivery, Swiggy also offers Instamart, an on-demand grocery delivery service, and Swiggy Genie, an immediate gift delivery service.
In 2022, the company intends to go public. Furthermore, the food-delivery juggernaut is focusing on the development of its Instamart grocery-delivery platform at the moment. It intends to have an initial public offering (IPO) before the end of 2022.
GoAir is an ultra-low-cost airline (ULCC). It has increased its domestic market share from 8.8% in fiscal 2018 to 10.8% in fiscal 2020, making it one among India’s fastest-growing carriers. The airline’s fleet inventory consists of 56 aircraft, with a network of 28 domestic and nine international destinations as of January 31, 2020.
A new issue of equity shares worth up to INR 3,600 crores would also be part of the initial public offering.
SBI MUTUAL FUND
India’s largest lender, State Bank of India (SBI), plans to list its mutual fund arm, SBI Funds Management, on the stock exchange in 2022. SBI Funds Management, on the other hand, is a joint venture between SBI and Amundi Asset Management (a Paris company). On April 13, 2011, SBI and AMUNDI Asset Management signed a shareholder agreement in this regard. As a result, SBI owns a 63 percent ownership in SBIFMPL, while AMUNDI Asset Management owns a 37 percent investment through a wholly owned subsidiary, Amundi India Holding. SBI and AMUNDI Asset Management will work together to establish the company as a reputable asset management firm by implementing global best practices and adhering to international standards.
SBI expects to sell 6% of its investment in the mutual fund unit, while Amundi intends to sell 4%.
Bajaj Energy is a company that produces energy. It is one of Uttar Pradesh’s largest private-sector thermal generation enterprises. It is responsible for the development, financing, and operation of thermal power plants in India. The corporation has a total gross installed capacity of 2,430MW, with 450 MW coming from five operational facilities with a combined capacity of 90 MW.
The company plans to raise Rs 5450 crores through this offering. The offer consists of a Rs 5,150 crore new issuance and a Rs 300 crore offer-for-sale of shares.
The year 2021 was the best for initial public offerings, with 63 firms raising $1.20 billion. Given the large IPO pipeline, the Indian IPO market is projected to have another record-breaking year in 2022.