Calendar 2022 was muted in terms of both number of IPOs and funds mobilised in value terms, but 2023 looks promising. At least 57 mainboard IPOs with proposed fund raising of Rs 85,605.59 crore had Sebi observations till December 27, data compiled from PRIME Database suggests. These IPOs, and many more, may hit the Street in the coming year.
This is against 40 mainboard IPOs mobilising Rs 59,412 crore in 2022 — a muted trend when compared with 63 IPOs in 2021 that fetched funds worth Rs 1,18,723 crore.
In 2022, IPOs were mainly concentrated in three major sectors namely edible oil, insurance and hospital & healthcare services. These three sectors contributed to 56 per cent of the total issuances in the year, Bank of Baroda’s Economics Research Department suggested in a note. This was against 2021 where insurance and finance (investment), e-commerce, chemicals and automobile sectors dominated the IPO list.
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At least 28 companies with proposed issue size of over Rs 1,000 crore-plus have already received Sebi nod for IPOs. Out of these IPOs, 14 have issue sizes of over Rs 2,000 crore; five in total have issue size of over Rs 5,000 crore. A company can launch its IPO within a year of receiving Sebi observations for the same.
Here’re the 10 big IPOs that would be awaited in 2023:
Aadhar Housing Finance | Issue size: Rs 7,300 crore
Aadhar Housing Finance received Sebi nod for the Rs 7,300 crore issue on May 5. The IPO papers were filed with Sebi on January 24, 2021. The housing finance company is backed by Blackstone. The issue is likely to comprise of a fresh issuance of shares worth Rs 1,500 crore and an offer for sale (OFS) of Rs 5,800 crore.
API Holdings (PharmEasy) | Issue size: Rs 6,250 crore
API Holdings, the parent company of online pharmacy PharmEasy, received Sebi nod for the Rs 6,250 crore issue on February 17. The IPO papers were filed with Sebi on November 10, 2021. The IPO would be a primary share sale. The company intends to allocate Rs 1,500 crore of IPO proceeds on inorganic growth opportunities. In addition, it intends to use IPO proceeds to repay borrowings and fund organic growth initiatives.
Bharat FIH | Issue size: Rs 5,004 crore
Bharat FIH is a Foxconn Technology Group company. It is the largest electronics manufacturing services (EMS) company in India. It received Sebi nod for Rs 5,004 crore IPO on June 10. It had filed draft papers with the market regulator on December 24, 2021. The IPO is likely to comprise of a fresh issue of shares worth Rs 2,502 crore and an offer for sale of up to Rs 2,502 crore by promoter group and Foxconn unit Wonderful Stars.
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Macleods Pharmaceuticals | Issue size: Rs 5,000 crore
Macleods Pharmaceuticals received Sebi nod for the Rs 5,000 crore issue on May 20. The IPO papers were filed with Sebi on February 15, 2022. Macleods Pharmaceuticals’ initial share sale would entirely be an offer for sale of up to 6.05 crore shares by promoters. The company develops, manufactures and markets formulations across several major therapeutic areas including anti-infectives, cardiovascular and hormone treatment.
TVS Supply Chain Solutions | Issue size: Rs 5,000 crore
TVS Supply Chain Solutions is a part of TVS Mobility Group. This company received Sebi’s observation letter on May 4. The company had filed papers on February 14. The Rs 5,000 crore IPO is likely to be a fresh issue of Rs 2,000 crore and offer for sale of Rs 3,000 crore. The company supplies spare parts and components to customers in the automotive, utility and defence sectors.
FabIndia | Issue size: Rs 5,000 crore
FabIndia, which is engaged in the sale of contemporary ethnic apparel and accessories, received Sebi’s nod for the IPO on April 30. It had filed its draft papers on January 24 this year. FabIndia is a consumer lifestyle platform with a focus on Indian traditional lifestyle products. It owns brands, ‘Fabindia’ and ‘Organic India’. FabIndia IPO would include a fresh issue of shares worth up to Rs 500 crore and an OFS of up to 2,50,50,543 shares.
Navi Technologies | Issue size: Rs 3,350 crore
Navi Technologies is backed by Flipkart co-founder Sachin Bansal. It is a financial products and services company, offering digital lending. It also offers personal loans, home loans, general insurance and mutual funds. Besides, it offers microfinance loans through a wholly-owned subsidiary. The Rs 3,350 crore offer would comprise of a fresh issuance of equity shares to investors. The company intends to use the IPO proceeds to invest in its subsidiaries Navi Finserv and Navi General Insurance and other general corporate purposes.
TBO Tek | Issue size: Rs 2,100 crore
TBO Tek is a travel services provider. Its Rs 2,100 crore IPO will comprise of a fresh issue of Rs 900 crore and an OFS of Rs 1,200 crore by the promoters and other early investors. TBO stands for Travel Boutique online. The travel distribution platform functions as a travel portal to travel agents. The IPO received Sebi nod on May 19. The company had filed draft papers with Sebi on December 27, 2021.
Allied Blenders & Distillers Issue size: Rs 2,000 crore
Allied Blenders and Distillers is the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between FY2014 and FY21.
The issue will consist of a fresh issue of equity shares worth up to Rs 1,000 crore and an OFS of Rs 1,000 crore by promoter and selling shareholders i.e Bina Kishore Chhabria up to Rs 500 crore, up to Rs 250 crore by Resham Chhabria Jeetendra Hemdev and up to Rs 250 cr by Neesha Kishore Chhabria.
CMR Green Technologies | Issue size: Rs 2,000 crore
CMR Green Technologies’ IPO would comprise of fresh issuance of equity shares worth Rs 300 crore and an OFS of 33,414,138 equity shares by promoters and investors. The selling shareholders would include Gauri Shankar Agarwala (up to 34.33 lakh equity shares), Kalawati Agarwal (up to 33.45 lakh equity shares), Mohan Agarwal and Pratibha Agarwal will divest (up to 30.09 lakh equity shares each). Investor Global Scrap Processors may also sell up to 1.99 crore equity shares of the company in the IPO.
