The financial year 2020-21 was a good year for the Indian stock market as a number of IPOs got listed for bidding and got listed. The majority of the IPOs opened for bidding received promising gains when they got listed in the stock market. There were some exceptions that didn't receive the expected gains such as PayTM, Fini Payments Bank, Aptus Value Housing Finance, Car Trade and a few more.
Although the stock market is not a promising place for fixed returns, IPOs are making their way into the fluctuating market of IPOs. But what made the investor positive toward the stock market in the last couple of months? In the last couple of months, the Nifty and Sensex has touched their peak with over 60,000 and 18,000 points, respectively. The Indian Stock Market has witnessed more than 40 IPOs in the year 2021, and the year is yet to end. In December, around 4 IPOs are going to open for bidding. The IPOs so far has raised more than Rs 700 billion, and that is a huge amount for emerging markets like India.
In the year 2022, 4 IPOs are launching that could change the face of the Indian Capital Market. These IPOs are of big companies, and startups turned billion-dollar Unicorns.
1. LIC (Life Insurance Corporation)
LIC is government-owned insurance provide and also it is India's biggest insurer. It was formed by the government of India in 1956 by merging 245 insurance companies. With around 2,048 branches spread across the country and a wide network of LIC agents, it is hard to count the true value of LIC. LIC holds half of the country insurance market, whereas the other half is captured by the others. The company has other businesses as well such as LIC Housing. The company is a majority stakeholder in IDBI bank.
The company has filed the draft with SEBI. The IPO is considered to be India's biggest IPO. In the IPO government is selling 5-10% of its share. For the government to fulfil its disinvestment aim, the listing will be critical. This IPO is expected to fetch the government between Rs 600 billion and Rs 800 billion.
In the latest announcement, the Government of India has kept 10% shares of LIC IPO reserved for the policyholders. Under the Policyholder category, the eligible investors can apply for the IPO at the time of bidding.
Ola is a startup-tuned unicorn, providing cab on-demand service across the country, mostly in Tier 1 and Tier 2 cities. Ola is also considering a public offering in the first half of next year, with a goal of raising at least Rs 150-200 crore. This investment will put Ola's worth between Rs 1200 and Rs 1400.
The company plans to raise half of its capital through the main offering and the other half through an offer for sale (OFS). Ola is profitable, unlike most companies. It made a standalone operational profit of Rs 89.80 crore in the fiscal year 2021, compared to a deficit of Rs 610 crore the previous year. The company has yet to file the draft with SEBI. However, it is expected to be open for bidding in 2022.
Delhivery, a Gurugram-based logistics startup, has also joined the list of IT companies that are planning to list in the stock market next year. The company has filed draft papers with the SEBI for a Rs 7460 crore IPO.
The business has already submitted its draught red herring prospectus (DRHP) to the securities and exchange commission. Delivery stated in its draught red herring prospectus (DRHP) that it plans to raise Rs 5,000 crore through new share issuance and Rs 2,460 crore through an offer for sale (OFS) component in which some of its current investors will reduce their holdings.
Byju's, a Bangalore-based startup tuned unicorn is India's biggest Edutech company. It is providing online education to millions of people from kindergarten to UPSC aspirants. The company is also planning an IPO for next year, 2022. It intends to raise $400 million to $600 million in total.
The startup has acquired several brands, companies in the past 2 years. As of now, the company has around 18 acquisitions so far and 1 investment in its portfolio. In a recent acquisition, the company acquired Akash Educational Service Limited, an offline coaching institute for IIT JEE, NEET/Medical and engineering entrance.
In the coming weeks, the company is projected to conclude its pre-IPO funding at a valuation of over Rs 2100 crore. It'll almost certainly be divided equally between equity and debt.
Byju's intends to submit its initial IPO filings in the second quarter of next year, shortly after its fiscal year ends in March. It had previously looked at a 12-to-24-month schedule after the financing.
In several reports published, the company and its bankers are negotiating a Rs 4,000 to Rs 5,000 value. Byju's was recently valued at 1800, up from Rs 16.500 in June 2021, in its most recent round.