Fresh IPOs in the second half of 2022
After a blockbuster year in 2021 for the initial public offerings, the primary market has been very slow at the start of the current year, 2022. There have been only three major companies, which are Adani Wilmar, AGS Transact, and Vedant Fashions. If we go by figures, the Indian markets have been flushed with around 63 companies with their public offerings, which is the highest figure since 2010. The companies have together risen around Rs. 1.2 lakh crore via the IPO route, while the previous highest figure was Rs. 75,279 core in 2017.
Global financial markets have witnessed a roller coaster ride with major of the global markets now trading in bearish territory. India, now being a part of globalization, has also taken the heat from the global sell-off and witnessed steep cuts in the equity as well as the currency markets.
However, the outlook for IPOs in 2022 has already been low due to the bad state of the market. Only 6% of what was raised in the same period in 2021 has been raised so far in 2022, according to the available data. Because of market volatility, inflation, and cautious market sentiments, IPOs have been drastically reduced. The IPOs should begin again once the market starts stabilizing and begins its upward journey.
Huge participation was witnessed in the recent IPOs, which can be identified by the important trend of retail participation, where cumulative Demat accounts also almost doubled from 2019 to 2022. The applications from retail investors have also increased from 8 million in 2019–20 to more than 70 million in November 2021. The only concern is whether retail investors investing in IPOs do proper research about the investment or if they just bet for the listing gains. It is the anchor investors/QIBs that are providing confidence to retail investors to subscribe to IPOs, as they usually subscribe to a chunk of the company’s shares.
The following is the fresh list of expected IPOs in the next couple of quarters that the street will be watching:
1. OYO: OYO Rooms is owned by Oravel Stays Limited, which will come out with the public issue. However, it is better known by the brand it represents, i.e., OYO Rooms, and is an online syndicator of hotel rooms and short-stay homes. The total IPO size is expected to be Rs. 8,430 crores, which will comprise a fresh issue of Rs. 7,000 crores and an offer for sale of Rs. 1,430 crores.
2. Go Airlines India Ltd.: Go Airlines is a part of the Nusli Wadia group and has been flying domestically in India for nearly 17 years now. As per the latest numbers put out by the Directorate General of Civil Aviation (DGCA), Go Airlines had a market share of passengers of 9%.
3. One MobiKwik Systems Ltd.: One MobiKwik Systems Ltd has filed for a Rs. 1,900 crore IPO with SEBI, which comprises a fresh issue of Rs. 1,500 crores and an offer for sale, or OFS, of Rs.400 crore. The MobiKwik IPO has already been approved by SEBI and the plans were also firmed up in the Dec-21 quarter before it was shelved in the light of the weak listing of Paytm. The SEBI approval is valid for a period of 1 year, so MobiKwik still has time for the IPO.
4. Aadhar Housing Finance Ltd: Aadhar Housing Finance Ltd filed its DRHP with SEBI worth around Rs. 7,300 crores. The issue comprises a fresh issue worth Rs. 1,500 crores and an offer for the sale of equity shares worth Rs. 5,800 crores. The main objective of the issue is to set aside Rs. 1,500 crores for the augmentation of the capital base of the company.
5. Ixigo: It is a technology company focused on empowering Indian travelers to plan, book, and manage their trips across rail, air, buses, and hotels. The company assists travelers in making smarter travel decisions through innovations on its OTA platforms, which comprise websites and mobile applications. The IPO issue size is estimated to be around 1,600 Cr.
6. Bajaj Energy and Lalitpur Power Generation Company Ltd.: are amongst the largest private-sector thermal power generation companies in North India. The company deals in developing and financing thermal power plants in India and aims to raise a capital of 5450 via an IPO in mid-2022.
7. Tamilnad Mercantile Bank: It is one of the oldest and leading old private sector banks in India which offers a wide range of banking and financial services primarily to micro, small and medium enterprises. The IPO will aim to raise a minimum of Rs 1000 crores, which shall include both a fresh issue and an offer for sale. This IPO is valid from September 5th to the 7th, 2022.
8. HDB Financials: A subsidiary of HDFC Bank, the NBFC company is amongst the leading private sector companies in the lending business and has filed DRHP with SEBI. The company aims to capture a valuation of 60,000 to 65,000 crores with its IPO, the size of which is yet to be declared.
The above are the few companies that are expected to come out with their IPOs in the current year of 2022, and no tentative dates or other details have yet been announced in the public domain. The above is only informative data for better decision-making for investors.