the 2022 IPO scene is heating up
the year 2020 was simply a teaser for what’s coming. food delivery giant Zomato had a stellar listing, mobile gaming venture Nazara made big gains, beauty platform Nykaa crossed market cap of Rs 1 lakh crore on its initial public offering (IPO) even as Paytm plunged on its market debut. simultaneously, the US Federal Reserve started its tapering programme that would be completed by July 2022, leading to some stock market volatilities.
this year helped set a record of sorts with 72 IPOs between January and September and another 35 till the end of the year. but what’s coming next year is even better.
we bring to you India’s five big IPOs that will dominate the headlines in 2022:-
touted as the blockbuster issue of 2022, LIC’s listing could be the country's largest ever listing. considering the scale of the Rs 1 lakh crore issue, there could be multiple tranches so that the market can absorb its size fully. currently, the insurer has appointed 10 bankers to manage its IPO and file its draft papers with Sebi over the next few weeks. What’s best about the issue? all policyholders will get an opportunity to participate and benefit from the listing gains. for this, customers need to update their PAN number and link it with their existing policies.
online pharmacy startup PharmEasy has filed draft papers for an IPO through its parent company, API Holdings. covid-led medical requirements led to a 3X increase in its revenues to Rs 2,335.26 crore in FY21. the company has already expanded its business offerings with a stake purchase in diagnostics chain Thyrocare. after its Medlife acquisition, PharmEasy became the country’s largest e-pharma venture. with a Rs 42,200 crore valuation in October 2021, the startup was also the digital pharmacy sector’s first unicorn. it is now looking to utilise its IPO funds to upgrade its technology solutions and the supply chain infrastructure.
logistics service provider Delhivery has filed for a Rs 7,460 crore IPO. the company is already strengthening its B2B capabilities through its acquisition of Spoton Logistics. it is expected that Delhivery will be valued at Rs 41,850 crore ($3 billion) at the time of the listing, subject to the demand-supply situation at that time. amidst a surge in e-commerce orders, 10-year-old Delhivery saw a 74% rise in revenues to Rs 2,986.4 crore during the financial year 2020. it is planning to use its IPO funds to grow the business and to make acquisitions in the logistics and allied sectors.
market intelligence company Tracxn has already received Sebi approval for its proposed IPO. eight-year-old Tracxn is backed by Ratan Tata, Mohandas Pai, Flipkart founders Sachin & Binny Bansal, Elevation Capital, Freshworks’ Girish Mathrubootham, Accel India, and Sequoia India (SCI). the private data platform already has 70% of its revenues coming from the non-India markets and ranks among the top five in this space globally. the Software as a Service (SaaS)-based platform has profiled over 1.4 million entities across the world as of May 2021 to provide exclusive data. post the IPO, Accel, SCI and the Bansal duo will exit the company.
Sachin Bansal’s tech-led financial startup Navi is all set to go public in 2022. the company has appointed investment bankers for this process. a short form for ‘navigator’, Navi is eyeing a universal banking licence even as it has product suites for loans, insurance, and mutual fund segments. it also holds a stock-broking licence. with a public listing, the entity will have adequate funds to realise its technology-backed financial behemoth dreams. inorganic expansion through acquisitions will also be enabled through an IPO. with a customer-base of over 15 lakh, Bansal’s dreams to list on the stock markets could become a reality next year.
apart from these companies, hospitality startup OYO is planning a 2022 listing. mobility startup Ola’s founder Bhavish Aggarwal is aiming for an IPO in the first half of 2022, too. Similarly, Flipkart’s IPO is also being highly awaited, though the company has given no timeline for this process.
equity enthusiasts building their investment portfolio could look at some of next year’s IPOs as entry points into the stock market. investing in an IPO with a strong company track record will help build their asset book and also help them benefit from listing-day gains. one thing to remember here is that having a demat account will be essential for trading, including buying shares during a public issue. for investors eyeing diversification of their portfolio and long-term savings, the time to enter stocks is now.