Despite the COVID-19 Pandemic hitting the economy, one thing that is still growing strong is India’s Initial Public Offering (IPO) market. The year 2021 hit a record high as the 63 issued IPOs managed to bring in Rs 1,18,704 Crore. This number is significantly more significant than in the last three years. In 2020, only 15 IPOs hit the market and raised Rs 26,613 Crore, while the previous year, fundraising through IPOs took a significant hit due to the ailing Indian economy.
However, this is now the past as the market kept on rewarding all the listed new IPOs. Before 2021, it was in 2017 when companies managed to raise record money at Rs 68,827 Crore. The newly listed companies are new-age technology businesses like Paytm, Zomato, and Nykaa.
With 2021 gone, now Indian investors are focusing on a new list of IPOs hitting the market in 2022, but before we begin, let us understand:
What is an Initial Public Offering (IPO)?
An IPO is when a privately owned company or a company with 100% ownership first sells its share of stock to the public. For example, in the case of the Life Insurance Company (LIC), the Government of India wholly owns the company but now wants to sell 5% of its ownership to the public. An IPO is an excellent way for a company to raise money and further use it to enhance its operations.
Here are the exciting companies that are soon going to be listed:
- Life Insurance Company (LIC)
The Government of India will sell 5% of its stake this year in one of the largest Insurance companies in the country, Life Insurance Company (LIC). The government is looking forward to raising almost Rs 75,000 from this stake sale. The company sells 31.6 Crore equity shares and is one of the many PSUs government wants to disinvest from. The government was preparing to list the company in March, but due to the Russia-Ukraine conflict, the government decided to delay the IPO and list it around May.
2. Ixigo IPO
Ixigo is an Indian online travel portal launched in 2007. According to the company’s website, travellers make smarter travel decisions by leveraging artificial, machine learning, and data science. It received India’s Securities and Exchange Board approval to raise Rs 1,600 Crore. The IPO will be a new issue of shares worth Rs 750 Crore and Offer-for the sale to existing shareholders.
3. PharmaEasy IPO
Another new-age tech company that will be getting the taste of Dalal street is PharmEasy. The company is a one-stop online medical platform that provides customers with Diagnostics tests, Medicines, and even doctors consultations online. The company is valued at $5.4 Billion and is expecting its IPO to be valued at around $7-8 Billion. The company is waiting for the Securities and Exchange Board of India’s (SEBIs) approval.
4. OLA IPO
The popular cab service in India, which began operating in 2010 under the current CEO, Bhavish Aggarwal, has come a long way. Besides the Cab, the company has stepped into numerous ventures, including the Microfinance business and Electric scooters. Besides, the company is also working on a super app that provides customers with all facilities from booking cabs to online shopping. The ride-hailing app company is planning to file for IPO in early 2022 and expects a valuation of around $1-2 billion.
5. MobiKwik IPO
Mobikwik is another Indian Payment service provider that will get listed this year. This Fintech company began operating in 2009 and is one of the significant players in the mobile wallet business. The company focuses on providing small loans to customers through (BUY NOW PAY LATER) mode and has seen substantial growth in this business segment. According to Chief Operating Officer Upasana Taku, “Our BNPL business has grown 22 times compared to last year, and the payments business has grown three times.” It looks forward to raising 1500 crore from the listing and plans to go ahead in November (instead of the start of the year) because of the market volatility.