Ipo: Lic, Adani Wilmar, Nse And Oyo Among 75 Ipos To Watch Out For In 2022

By Author: Ricky Kirpalani
Total Articles: 24
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New Delhi: The primary markets saw 2021 as a historic year and are contemplating 2022 on similar lines, with a long queue of companies eyeing to make their Dalal Street debut.

As many as 75 companies are in the IPO pipeline, with 37 having valid observations from Sebi and the remaining 38 awaiting market regulator’s go-ahead after filing their DRHP, suggests a report from Axis Capital.

Even in the March quarter, 23 companies are looking to collectively raise nearly Rs 44,000 crore through initial share sales, of which a significant chunk will be garnered by technology-driven companies.

“We foresee moderation in the primary market in terms of numbers of offerings,” said Vinod Nair, Head of Research at Geojit Financial Services.

However, the IPO market will be supported by the government’s divestment plan, start-ups and new growth in the economy, he added. “Going ahead, investors are expected to be choosy in terms of quality and pricing of IPOs.”

However, investors are keenly waiting for the issues of some of the most buzzed names, including the insurance behemoth Life Insurance Corporation ...
... of India (LIC).

LIC is the most awaited issue this year, but the company has not filed its DRHP yet and it requires ample clearances and regulatory approvals before knocking on the doors of the primary market.

Even for the government itself, LIC’s IPO holds paramount importance. The Centre is eyeing to raise to Rs 80,000-1,00,000 crore, a major chunk of Rs 1.75 lakh crore divestment plans, diluting its 5-10 per cent stake.

The market for primary issuances is likely to be buoyant in 2022, thanks to a strong pipeline of DRHP with SEBI and observations received from the market regulator, said Ricky Kirpalani, Lead Sponsor, First Water Capital Fund.

“However, the LIC IPO is likely to take the lion’s share of the expected mobilization,” he added. “The recent tepid listings may slow the flurry run, but overall it will be healthy, as long as quality names are available at a reasonable price.”

NSE is another highly anticipated issue. The largest derivatives bourse and India’s leading exchange is eyeing to raise Rs 10,000 crore via the share sale.

The company’s shareholders include several prominent names such as State Bank of India (SBI), LIC, IFCI, IDBI Bank, Goldman Sachs, Stock Holding Corporation, Tiger Global and Citigroup, among others.

Adani Wilmar, the joint venture between Adani Group and Singapore’s Wilmar Group, is likely to raise Rs 4,500 crore via IPO route for capital expenditure for expansion of existing manufacturing facilities, which will entirely be a fresh issue.

After the success of, and PB Fintech, homegrown start-ups will continue to launch their mega issue for the investors in 2022. Oravel Stays (OYO), Delhivery and PharmaEasy will hog the limelight this year, as they eye to raise to Rs 22,150 crore via IPOs.

Apart from these, Snapdeal, Droom Technology, LE Travenues Technology (Ixigo), Ola, One Mobikwik Systems and Byju’s are some of the key start-ups lined up to raise fresh capital via the primary route.

However, the majority of start-up IPOs have been mega-sized issues as they provide an exit to a large number of existing investors and promoters to offload their stake.

“Our start-up ecosystem, already the 3rd largest in the world, too, will continue to flourish. We have already seen several start-ups attaining unicorn status this year and believe that it is a trend that will continue in 2022,” said Ravi Kumar, Co-Founder & CEO, Upstox.

Among the traditional businesses, investors will be keenly awaiting the IPOs SBI Mutual Funds and Bajaj Energy along with VLCC Health Care, Sterlite Power Transmission, Tracxn Technologies and Go Airlines.

Emcure Pharmaceuticals, Vedant Fashions, Paradeep Phosphates, Medanta, Seven Islands Shipping, Aether Industries, Five Star Business Finance and Vedant Fashions (Manyavar) are expected to float their initial share-sales.

India will continue to be an attractive destination for investment as the macroeconomic parameters remain stable, and will continue to support consumption and investment, said Kumar of Upstox.

“A large untapped market, favourable demographics, rising financial literacy, increasing smartphones and low-cost internet penetration will continue to boost equity participation,” he added.

In 2021, 63 companies raised about Rs 1.20 lakh crore through their initial stake sales. Apart from this, a couple of REITs and InvITs raised more than Rs 11,500 crore during the year.

The record funding for companies comes despite weak market sentiment arising from the nationwide Covid-19 lockdown in the first half of the calendar year.

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