Initial Public Offering Watch List: Forthcoming public issues in 2021 – Zomato to GoAir, over twelve organizations have petitioned to be listed.
- India is set to witness a tornado of new IPOs in 2021.
- Presently, 22 organizations have documented their outline with the market controller Securities Exchange Board of India (SEBI).
- Altogether, these companies plan to raise over $400 billion.
- In 2020, 14 organizations got registered on the stock trade, raising over $250 billion.
The year 2021 could be a surprisingly better than 2020 for companies hoping to open up to the world. While a few organizations have effectively recorded on the stock trade, over a dozen more are currently carrying out their IPO process. According to a report, India saw 22 IPOs worth over $2.5 billion in the initial three months of 2021 amid “huge “momentum” in the country’s capital business sectors. The pattern is probably going to remain bullish in the current quarter too.
IPO Frenzy picks up pace
As per the top consultancy EY India’s IPO report 2021 Q1, consumer items and retail, enhanced mechanical products, cars, and transportation were the most dynamic areas for the majority of IPOs. The IPOs incorporate both in principle and SME (Small and Medium Enterprise) markets, too. There were 22 IPOs in India that took $2,570.44 million in the first quarter of 2021, including five in the SME sector.
During the initial quarter, Indian Railway Finance Corp’s IPO – with an issue size of $634 million – was the biggest. In the SME space, there were 5 IPOs in the first quarter of this current year versus 11 and 9 IPOs in January-March, 2020 and the final quarter of a year ago, respectively. This addresses a reduction of 55 percent contrasted with Q1 2020 and a decrease of 44 percent compared to Q4 2020. According to the report, the IPO pipeline has more than 20 companies that recorded their Draft Red Herring Prospectus (DRHPs). Over 30 PE-upheld organizations are arranging their exits. InvITs worth nearly $5 billion are in the pipeline.
Also, in 2021, there is a total of 22 companies who have submitted their draft red herring plan (DRHP). It is a report that traces the business matter of the organization, its financial position, the purposes behind which the establishment is fund-raising, and how it will utilize it. In the initial five months of 2021, 18 companies alone got registered on the stock exchange. This rundown incorporates some vast names like Nazara Technologies, Easy Trip Planners, RailTel, Indigo Paints, among others.
Furthermore, more companies such as Life Insurance Corporation of India (LIC), Bajaj Energy, and others are predicted to open up to the public this year. Nonetheless, they are yet to file the plan with SEBI. LIC, specifically, could launch a massive IPO of $700 billion, as indicated by some media reports.
Watch: Top IPO Picks To Invest In 2021
Forthcoming IPOs in 2021
Here is a list of the future IPOs in 2021. Please note that the IPO dates are not known at this point. The companies have either been given the nod by SEBI or have submitted their plan with the regulator.
Zomato could be one of the interesting IPOs to keep an eye out for in 2021. Known for its food delivery business, the Gurugram-based Zomato established by Deepinder Goyal, tallies Info Edge, Uber, Alipay Singapore, and Antfin Singapore among its financial backers.
The company intends to raise $75 billion through a new issue and $7.5 billion through an offer for sale (OFS) by its current financial backer, Info Edge. It plans to utilize $56.25 billion towards financing the natural and inorganic development over the next five years – organic growth means client gain, and fortifying innovation and delivery infrastructure, while inorganic development means acquisitions and associations.
2. Sona Comstar
Sona BLW Precision Holdings (Sona Comstar) is a Gurugram-based organization that designs and makes high-tech designed components. It will yield new shares worth $3 billion, and the rest $57 billion will be through OFS by a current investor, Singapore VII Topco III Pte Ltd. The company aims to allocate part of the returns towards the installment of specific borrowings.
3. Nuvoco Vistas
Nuvoco Vistas is a Mumbai-based cement producer, upheld by the Nirma bunch. It is the fifth-biggest concrete creator in the country. The company intends to raise $15 billion using a fresh issue and $35 billion via OFS, wherein its advertiser Niyogi Enterprises will offload its share. It means to utilize the returns towards refund its debt, aside from other general valuable prerequisites.
According to two individuals acquainted with the deal told TechCrunch, Indian online business giant Flipkart has hit the market to raise about $1 billion at up to $30 billion valuations in a pre-IPO financing cycle. The Bangalore-based startup, which sold a maximum stake to Walmart for $16 billion in 2018, started raising money prospects for specific funders earlier this year and has since developed more genuine and recruited brokers.
According to sources, Flipkart, which was last esteemed at about $24.9 billion a year ago when it brought $1.2 billion up in a round driven by Walmart, hasn’t finalized the new venture, and the size of the deal as the valuation may get affected.
5. Go Air
Wadia Group Go Air, which has been rebranded Go First, will be the third operational Indian aircraft to open up to the public. The minimal expense carrier has requested for an IPO to raise $36 billion. IndiGo and SpiceJet have already registered themselves on the IPO. Previous Jet Airways and Kingfisher, which quit flying somewhat recently, were also listed.
Go First is raising assets when Covid has seriously affected the financials of all aircraft and attempting to raise funds. India’s most significant airline (in terms of the number of travelers flown), IndiGo, a week ago chose to raise upto $30 billion. IndiGo, for some years, has a proposal from Qatar Airways boss Akbar Al Baker to make an investment into the company whenever promoter Rahul Bhatia waves the green flag for the same.
However, according to a report, there are logical explanations behind some caution in the near term. This is especially given to the sluggish beginning to vaccinations in the country compared to the population, fresh spike in Covid-19 cases with the second wave, and dangers from new infection variations.
Furthermore, alluring economic situations in 2021 so far have brought about the best-performing first quarter by bargain numbers and proceeds over the past 20 years worldwide.