5 IPOs Expected In October 2021

Reports suggest there will be a whole lot of public offers around the time of Diwali and this will likely compel the players coming up with an offer to price their IPOs reasonably, but before that too i.e. in the ongoing month as per IPO market feedback, as many as 5-6 IPO may be launched. Before we get into the details of those likely IPOs, it may be noted that reports suggest that as many as 35 companies may raise Rs. 80000 crore via IPO in Q3 period of FY22.

Also it will be interesting to note that over 100 companies have filed papers with SEBI for an IPO and many will come through before March of 2022.IPOs expected in October 2021:

1. Nykaa:

The first unicorn startup led by a woman is set to raise a total of Rs. 4000 crore. As per the DRHP, both the promoters as well as the investors in the company look to offload their stake via OFS of up to 43.1 million shares. From the fresh equity issuance, the company looks to raise Rs. 525 crore. The profitable startup up is an online beauty and wellness products aggregator firm. Subsequent to the IPO, promoter family of the company will continue to hold 51 percent stake in the company.

2. Paytm:

The payments company backed by Softbank and Ant Group eyes IPO listing before Diwali and is waiting for market regulator's go-ahead. Also, as per the leading news daily that cited sources, a host of financial investors as well as sovereign wealth funds are interested to join the IPO as anchor investors.

The IPO of $2.2 billion that will comprise both OFS and equity issuance shall be the biggest in more than a decade.

3. Policybazaar:

This is an online insurance aggregator that in August filed draft papers to float the Rs. 6017 crore IPO. Through the offer that comprises a mix of OFS and fresh equity issuance, the major PE investor SVF Python II (Softbank) looks to pare stake.
As per the company, proceeds shall be used for seeking new opportunities for increasing its consumer base via moves such as making visible offline presence, strategic investments and acquisitions, expanding its footprint outside the country , and for general corporate purposes.

4. Go Fashions:

The firm running Go Colors- a women's bottom-wear brand has filed IPO papers with SEBI in August. The IPO comprises fresh issue of equity shares worth up to Rs 125 crore and an offer-for-sale (OFS) of up to 12,878,389 equity shares by promoter and existing shareholders.

The fresh funds raised through the issue will be used for rollout of 120 exclusive brand outlets, support working capital needs and for general corporate purposes.

5. Sapphire Foods:

In the QSR segment, another company is set to debut after Barbeque Nation. The operator of KFC and Pizza hut will float an IPO that will be completely an OFS as per the DRHP.

As part of the offer QSR Management Trust will sell 8.50 lakh shares, Sapphire Foods Mauritius Ltd will offload 55.69 lakh shares, WWD Ruby Ltd will divest 48.46 lakh shares and Amethyst will offer 39.62 lakh shares.

Company	IPO size	Fresh equity	OFS
Nykaa	Rs. 4000 cr.	Rs. 525 cr.	43.1 million shares
Paytm	Rs. 16600 cr.	Rs. 8300 cr.	Rs. 8300 cr.
Policybazaar	Rs. 6017 cr.	Rs 3,750 crore	Rs 2,267.5 crore
Go Fashions	Rs. 125 cr.	Rs. 125 cr.
Sapphire Foods		NA	17,569,941 equity shares