IPOs to watch out for in 2022
The buzz is 75 companies is expected to raise the money via IPO; some of them have already got a regulator’s approval and some are still awaiting
2021 was a spectacular year for the Indian primary market wherein 63 companies raised Rs 1.2 lakh crore through initial public offering (IPO) - the highest amount ever raised in a single calendar year. Before last year, it was in 2017 which was best year for the IPO when Rs 68, 827 crore was raised. In 2021, IPO was dominated by the new age technology start-ups like Paytm, Zomato, Nykaa and Policybazaar. Bullish trend in the equity market, strong retail participation also helped these IPOs to get stellar response in 2021.
Investors who might have missed the chance in IPOs in 2021 need not get disheartened as 2022 looks equally exciting year. The buzz is 75 companies is expected to raise the money via IPO; some of them have already got a regulator’s approval and some are still awaiting. There is anticipation that companies will garner around Rs 1.5 to Rs 2 lakh crore via IPO in the new year. The table list down the some of the upcoming IPOs in 2022 and their tentative issue size. The dates of majority of these issues are yet to be announced. It is only an indicative list; we are not giving any recommendations. Investors need to invest in IPO in line with their risk appetite and after evaluating all the aspects of the company. Investors can also read our previous article on factors to evaluate before investing in an IPO - Don’t jump to IPO bandwagon, factors to look at before investing in an IPO
IPOs to watch out for in 2022
The fast-moving consumer goods company which is joint venture between Adani group and Wilmar of Singapore intends to use the money fund capital expenditure to expand existing manufacturing facilities and develop new manufacturing facilities.
The Wadia group’s low-cost carrier Go First, formerly known as GoAir, has notched up its highest market share of 9.8% in 2021 and become third biggest domestic carrier after Indigo and Air India according to Directorate General of Civil Aviation (DGCA) report. Through IPO proceeds, Go Air is likely to reduce debt including paying oil companies and lease rentals on aircraft.
One of the largest and fastest growing logistic company has filed for the IPO which will enable existing investors to sell part of their holdings.
Leading provider of the of Buy Now Pay Later (BNPL) and mobile wallet in India will use the IPO proceeds to fund organic as well as inorganic growth initiatives and general corporate purpose.
The hospitality start-up will use the money raised through IPO to prepay or repay certain borrowings taken to fund the organic and inorganic growth initiatives of its subsidiaries. Some of the shareholders aim to sale stake as well.
Currently India’s largest online pharmacy start-up intends to use the IPO proceeds to invest in three core areas, including marketing and promotional activities, supply chain infrastructure and fulfilment, and for upgrading its tech infrastructure.
This is most awaited IPO of 2022 and India’s biggest public offering till date. The government plans to sell 10% of its stake in LIC through IPO. The details are likely to be announced in the Union Budget.
India’s largest stock exchange – NSE also aims to go public this year. The details are awaited and many big financial institutions like SBI, LIC, IDBI Bank, Goldman Sachs and others are among the major shareholders.
India’s largest depository is also likely to launch an IPO in 2022 which can offer an exit to some of the existing investors. Details of the same are awaited.
Backed by Japan's SoftBank Group and other investors, OLA plans to go public in the first half of 2022. The listing will help some of the investors to sell their stake. The company also plans to leverage the customer base to offer personal finance services and micro insurance, moving towards a super app. It will launch an electric car in 2023 and is looking at setting up local battery cell manufacturing.
An online marketplace for automobiles will use the IPO proceeds to fund organic as well as inorganic growth initiatives and general corporate purposes.
A travel portal which feels IPO will offer opportunity to existing investors to exit and also enable company and other stakeholders to grow.
The leading online education start up firm also plans to go public in 2022. The details are yet to be announced. The firm has been on acquisition spree in the recent times which can play a key role in its expansion.
The proceeds from the issue will be used to repay debt of the firm and its arm Khargone Transmission Ltd (KTL).
The company plans to utilise the proceeds from the IPO to utilise the proceeds from the IPO to purchase equity shares of Lalitpur Power Generation Company from Bajaj Power Ventures and Bajaj Hindustan Sugar and the remaining amount will be utilised for general expenses.
Utkarsh Small Finance Bank
It will sixth small finance bank to get Sebi's nod for IPO. Utkarsh intends to utilize the net proceeds from the fresh issue to augment its tier 1 capital for business expansion
The IPO details of the online food delivery platform is yet to be released but the company will invest $700 million in its express grocery delivery service Instamart as it looks to double down on non-food delivery categories.
SBI Mutual fund
State Bank of India (SBI) plans to sell its 6% stake in the mutual fund venture SBI Mutual fund through IPO. SBI Mutual fund if listed will be the fifth asset management company to get listed after HDFC Mutual Fund, UTI Asset Management Company, Nippon Life India Asset Management and Aditya Birla Sun Life AMC.
Investors have wide range of IPO to look out for in 2022. The details of majority of the issues and many more will be released gradually. A 360-degree analysis of the company current and future outlook, fundamentals and investor’s personal parameters including risk profile is crucial before investing.