- It is raining IPOs in India as every month sees about 5-10 companies filing DRHPs with SEBI.
- In 2021 so far, 41 IPOs have been listed on the BSE.
- More than 65 companies have filed DRHP with SEBI so far in 2021 out of which 10 companies have filed DRHP in August alone.
2021 seems to be a lucky year for companies to get listed by issuing their shares to the general public. So far in 2021, more than 65 companies have filed their draft red herring prospectus (DRHP) with India’s market regulator Securities and Exchange Board of India (SEBI).
DRHP is a document that outlines the business of the company, its financial position, the reasons for which the company is raising money and how it will use it.
Meanwhile, 41 initial public offerings (IPO) have already been listed on the BSE in 2021. From these — Tatva Chintan Pharma Chem, Clean Science and Technology, G R Infraprojects and Indigo Paints were some of the hits of 2021 as the IPOs of these companies got listed at about 75-105% premium over its issue price.
Adding to it, the IPO of Life Insurance Corporation of India (LIC) is the most awaited as it will be the largest in India’s corporate history. As per reports, the company will be raising ₹70,000 crore. However, they are yet to file the prospectus with SEBI.
There are more than 65 companies that filed prospectus with SEBI this year. Here is a list of 10 most awaited IPOs of well known companies that might get listed this year.
Paytm
Digital payments firm Paytm has filed for a ₹16,600 crore ($2.2 billion) IPO, which will also be India’s biggest IPO so far, surpassing Coal India’s that raised ₹15,000 crore in 2010. It will be interesting to watch out for this IPO.
About ₹8,300 crore ($1.1 billion) will be through a fresh issue and the remaining 50% would be secondary issues (offer for sale) to offer exit to existing investors. Paytm is one of the biggest digital payment companies in India with offerings across several digital modes of payments like unified payments interface (UPI), credit and debit cards payments.
PolicyBazaar
India’s largest online insurance aggregator, PolicyBazaar is looking to raise ₹6,000 crore through IPO. PolicyBazaar is one of the biggest beneficiaries of the boom in India’s insurance sector as a market leader in selling insurance online.
PolicyBazaar is one among a slew of tech IPOs to hit the Indian exchanges this year. It is also one of the country’s top fintech startups — the other one being Paytm — going for a public issue. 95% of PolicyBazaar’s revenue comes from commissions from insurance companies for selling policies.
Nykaa
Nine-year old fashion and beauty e-commerce platform Nykaa has also filed the prospectus with SEBI recently. The company is reportedly looking to raise ₹4,000 crore.
DRHP says the IPO would consist of a fresh issue of equity shares worth ₹525 crore and an offer for sale (OFS) from existing investors of 4.3 crore equity shares.
MobiKwik
Digital wallet and payments company MobiKwik has filed the DRHP with the market regulator to raise ₹1,900 crore.
The company plans to raise ₹1,500 crore through primary issue and the remaining ₹400 crore through secondary issue where existing investors will sell their stake.
ESAF Small Finance Bank
ESAF Small Finance Bank has filed the prospectus with the regulator to raise ₹997.78 crore with fresh issue of ₹800 crore and an OFS from existing investors of ₹197.78 crore.
It is one of the leading small finance banks in India in terms of client base size, yield on advances, net interest margin, and loan portfolio concentration in rural and semi-urban areas.
Fincare Small Finance Bank
A week ago, the small finance bank got SEBI’s approval to float IPOs. It is looking to raise ₹1,300 crore through the IPO out of which ₹330 crore will be via a fresh issue and ₹1,000 crore via OFS. It intends to use proceeds from the fresh issue towards boosting its tier-1 capital base to meet future capital requirements.
Fincare Small Finance Bank, which targets the rural and semi-urban areas could join a growing list of small finance banks getting listed on the stock exchange.
Penna Cement
The construction material company is looking to raise ₹1,550 crore through the IPO out of which ₹1,300 crore will be through fresh issue and ₹250 crore via OFS. It intends to use the proceeds for repayment of certain borrowings, meeting capital expenditure requirements and upgrading its manufacturing facilities.
Penna Cement is a known name in south India’s cement industry. It was established in 1991 and sells a range of cement types.
Adani Wilmar
Fast Moving Consumer Goods (FMCG) company Adani Wilmar, known for edible oil ‘Fortune’, has filed its DRHP with the market regulator to launch a ₹4,500 crore IPO.
Adani Wilmar is a joint venture between Adani Group and Singapore-based Wilmar which was formed in 1999. It sells cooking oils under the Fortune brand as well as various other food products like rice and sugar.
Gemini Edibles & Fats
Gemini Edibles & Fats India has filed a prospectus to raise ₹2,500 crore through an IPO. The Hyderabad-based firm makes the ‘Freedom’ brand of sunflower oil.
The issue is a complete offer for sale by the selling shareholders and the company will not receive any funds from the net proceeds of its IPO.
Fino Payments Bank
Fino Payments Bank is a scheduled commercial bank with its digital based financial services.
The company is expected to raise ₹1,300 crore through IPO which includes a fresh issue of equity shares worth ₹300 crore and an OFS of 15,602,999 equity shares by promoter Fino Paytech.
Proceeds from the fresh issue would be used towards augmenting the bank’s tier-1 capital base to meet its future capital requirements.
