Indian IPO mkt set for another blockbuster year in 2022

The Year-2021 turned out to be the best year for public issues in two decades for the Indian market. The higher amount of funds will be largely seen to be driven by the mega issue of state-owned Life Insurance Corporation of India (LIC) in 2022. The insurance behemoth is planning an initial public offering (IPO) in the first half of 2022, which would be the largest IPO in the country so far.

Many new-age digital players are also seen to participate in the IPO rush as companies are expected to garner up to Rs1.5 lakh crore in the 2022 through initial share sales. Unicorns like Delhivery (Rs 7460 crore), Droom (Rs 3000 crore), MobiKwik (Rs 1900 crore), Oyo (Rs 8430 crore), Pharmeasy (Rs6,250 crore), Ixigo (Rs1,600 crore), BYJU'S (Rs4,500), Foxconn India's unit Bharat FIH Ltd (Rs5,000 crore) are among the ones have filed DHRP with capital market regulator Sebi. As per CR Forex advisors, these will be seen coming up with their IPOs in early 2022 on primary market side.

The largest IPOs were of Paytm (One97 Communications) with an issue size of Rs18,300 crore, followed by Zomato at over Rs 9,300 crore. Around 35 companies have secured the market regulator's approval for their IPOs next year, proposing to raise roughly Rs 50,000 crore, according to Prime Database. Another 33 companies, awaiting the regulator's approval, plan to raise about Rs 60,000 crore, as per the report.

Listing down some of the companies that are expected to come with their IPOs in 2022

LIC IPO: Life Insurance Corporation of India (LIC) as per the latest news is expected to launch its IPO sometime in the first quarter of the financial year 2022-23. It is expected to be India's biggest-ever initial public offering with the government selling a stake of 5-10 per cent in the insurance company. As per analysts, the IPO size can be somewhere between Rs 80,000 crore and Rs 1,00,000 crore.

Adani Wilmar: A leading name in the edible oil industry, and one of the most popular products is cooking oil under the banner of Fortune Oil. It is among the top FMCG companies in the country with a variety of products. The IPO size will be Rs 4500 crore.

Bajaj Energy IPO: It is one of the largest private-sector thermal generation companies in Uttar Pradesh. It develops, finances, and operates thermal power plants in India. The company has a total gross installed capacity of 2,430MW, comprising 450 MW from five operational plants of 90 MW each. The company intends to raise Rs 5450 crore. The offer comprises a fresh issue worth Rs 5,150 crore and an offer-for-sale of shares up to Rs 300 crore.

Go Airlines IPO: GoAir is an ultra-low-cost carrier (ULCC). It is one of the fastest-growing airlines in India, with an increase in domestic market share from 8.8 per cent in fiscal 2018 to 10.8 per cent in fiscal 2020. The carrier's fleet inventory consists of 56 aircraft and as of January 31, 2020, the airline covered a network of 28 domestic and nine international destinations. Its IPO will comprise fresh issuance of equity shares aggregating up to Rs 3,600 crore.

Ola IPO: Ola is a cab-hailing service that was launched in 2010 by Bhavish Aggarwal on the lines of Uber in the global markets. Since 2010, Ola has raised nearly $4 billion and the proposed IPO is likely to look for valuations of $8-9 billion. The IPO is expected to be around Rs 15000 crore.

BYJU'S IPO: It is related to education here, students are provided online education for free. The app is mainly made for the students of class 4 to class 12. Along with this, information related to competitive exams like JEE, NEET, IAS is also given in it. It is expected, Byju's will raise around Rs 4500 crore through its IPO.

PharmEasy IPO: The company provides health services ranging from teleconsultation to radiology tests to home delivery of medical products and devices. It plans to raise Rs 6,250 crore in fresh equity shares.

MobiKwik: The digital payment company aims to address the credit requirements of the rapidly increasing online consumers. It offers services like peer-to-peer payments through UPI, MobiKwik Wallet and MobiKwik Wallet to bank payments are available on this platform. The issue size of MobiKwik IPO will be Rs 1900 crore. It includes a fresh share issue of up to Rs 1500 crore and an offer for sale worth Rs 400 crore.

Sterlite Power IPO: It is one of the leading private sector power transmission infrastructure developers and solutions providers. The company develops integrated power transmission infrastructure and provides solution services through two business units: Global Infrastructure and Solutions. IPO comprises of fresh issue of equity shares aggregating up to Rs 1,250 crore.

Arohan Financial Services IPO: They are one of the leading NBFC-MFIs in India. It operates in the low-income, unpenetrated states of India. The offerings of Arohan Financial Services include credit as well as insurance products. Under credit, they offer income-generating loans and other forms of financial assistance. Under insurance, they cover life and health insurance products. It plans to raise Rs 1750 crore to Rs 1800 crore. The company's IPO will include a fresh issue of Rs 850 crores, and the remaining will be offer for sale.

Ixigo IPO: Le Travenues Technology Ltd., which operates travel platform Ixigo plans to raise Rs 1,600 crore through an initial public offering. The IPO will consist of fresh issuance of shares worth Rs 750 crore and an offer-for-sale of equity shares worth Rs 850 crore by existing shareholders. Other than being a travel platform, it also provides travel utility products and technologies, such as train PNR status and confirmation forecasts, train seat availability notifications, train running status notifications and delay forecasts, etc.

Penna Cement IPO: It is one of the largest privately held cement companies in India and a leading integrated cement player in terms of cement production capacity. The company operates out of four integrated manufacturing facilities and two grinding units across Telangana, Andhra Pradesh, and Maharashtra with an aggregate capacity of 10 mmtpa. It expects to raise Rs 1,550 crore through its public offer. It includes a fresh issue of equity shares aggregating up to Rs 1,300 crore and an offer for sale worth Rs 250 crore.

Fincare Small Finance Bank IPO: It is a 'digital-first' Small Finance Bank(SFB) with a focus on unbanked and under-banked customers, especially in rural and semi-urban areas. They follow a business model focused on financial inclusion and aim to provide individuals and businesses with affordable financial products and services that meet the customers' needs. They are coming with a Rs 1300 crore IPO which includes a fresh issue of Equity Shares aggregating up to Rs 330 crore and an Offer for Sale of up to Rs 1000 crore.

Paradeep Phosphates IPO: It is a leader in manufacturing, trading, distribution, and sales of a variety of complex fertilizers such as Di-ammonium Phosphate, and its fertilizer are sold under brands like 'Jai Kisaan - Navratna' and 'Navratna'. It plans to raise up to Rs 1,255 crore fresh capital.

Seven Island Shipping IPO: It is a seaborne logistics company that was incorporated in 2002. The company is engaged in the trading of petrochemical lubricants, crude oil, and more. A few of the primary priorities of this company include secure transportation, efficiency while maintaining a clean environment. The company plans to raise funds worth Rs 600 crore via public issue. The initial public offering will include a fresh issue worth Rs 400 crores and Rs 200 crore of Offer for Sale.

Gemini Edibles and Fats IPO: It is associated with the edible oil business. They are also one of the leading integrated palm oil plantation companies in the world whose primary activities include the cultivation of oil palm plantations in Indonesia. It plans to raise Rs 2500 crore through the IPO through an offer for sale.

SREI Equipment Finance IPO: It is a Kolkata-based company and is a part of SREI Infrastructure Finance Limited. The company provides loans for buying equipment that is used in the construction industry, Irrigation and Water Supply, Civil Aviation, mining, IT infrastructure development, healthcare industry, farming, etc. It plans to raise Rs 2000 crore through its IPO. The IPO consists of fresh issue equity shares of Rs 1100 crores and Rs 900 crore will be an offer for sale.

ESAF Small Finance Bank IPO: is one of the leading small finance banks in India in terms of client base size, the yield on advances, net interest margin, asset under management CAGR, total deposits, loan portfolio concentration in rural and suburban areas, and the ratio of microloan advances to gross advances. Its IPO comprises a fresh issue of Rs 800 crore worth of shares and an OFS of Rs 200 crore worth of shares.

Chemspec Chemicals IPO: is a leading manufacturer of critical additives for the FMCG ingredients used in hair and skincare products worldwide. It also manufactures intermediates for pharmaceutical APIs used to formulate antihypertensive drugs. It plans to raise Rs 700 crore through Offer for Sale (OFS).

Shri Bajrang Power and Ispat IPO: It is India's leading iron and steel company. It has emerged as one of the leading integrated steel companies based out of central India and is one of the top 10 players in terms of capacity for iron ore pellets. It is coming with an IPO size of Rs 700 crore.

Given the huge IPO pipeline, Year 2022 is expected to be another record-making year for the Indian IPO market. It would be interesting to see which of these IPOs take off during the first half of the year.