IPO News: Companies Deferring Their IPO Plans Ahead Of LIC IPO, Other News

Primary market is abuzz at this hour and eagerly awaiting the largest public issue of the Indian capital markets. Nevertheless, in this story we have collated some interesting stories of the primary market.

1. LIC IPO:

LIC post the IPO is expected to have a market cap of Rs. 15-17 lakh crore. There is a high case and view that if the current uncertainty is tamed the issue may see high interest and subscription. Nevertheless, this shall also suck liquidity from the secondary markets. As reported, LIC posted CAGR growth of 8 percent over FY11-21 and having return on equity (ROEs) of more than 80 percent in FY21.

While the history has seen big IPOs but currently they have not fared well say for instance DLF, Reliance Power, Coal India among others. Also as the tentative LIC offer period is known, to your surprise, the issue is commanding the GMP in negative as per a leading portal tracking IPOS.

2. Firstcry IPO:

This company which started off as the baby care product e-commerce entity is also eyeing an IPO in 2022 as per reports. Reportedly, the issue shall include the company's roll up business Globalbees. "The work has begun for the IPO. FirstCry is aiming to go public this year but the size of the issue is not yet finalised. It would be a mix of primary share sale as well as offer for sale (OFS), where the new funding would be used for M&As (mergers and acquisitions)," said one of the persons, who is quoted in a business dailies report.

3. NSE:

The issue of NSE has been further delayed as regulatory probes into the exchange's former executives for alleged violations.

SEBI is unlikely to give its nod to NSE to go public at the current situation, and it may take another year or so to clean up the entire system," said a top official at an investment bank quoted as saying in a leading dailies.. "More action on all those involved in the co-location scam and violation of securities contract rules is likely in the coming months from various agencies. Until then, the regulator may not consider NSE's request to go public."

Also, in order to avoid the clash with the LIC IPO, companies are delaying their IPO plans.

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