More than ₹ 1 lakh crore. This is the massive amount of total funding raised through the 2021 IPOs in India. according to Ernst & Young (EY) Global IPO Report Issued in December 2021, IPO activity in India increased by a whopping 156%, going from 43 deals in 2020 to 110 deals in 2021. Moreover, funding proceeds from IPO deals in 2021 were close to $16.94 billion. , an increase of 314% from $4.09 billion in funding in 2020.
Looking back in 2021, we saw big names like Paytm, Zomato, Nykaa, Policybazaar and others already wrap up their initial public offerings. But the story is not over yet!
With the new year 2022 already looming, the IPO fever is set to continue, with a strong pipeline of IPOs this year. Eager to know the names? Read on as we bring you some of the highly anticipated and upcoming IPOs to look forward to in 2022.
1.LIC (Life Insurance Corporation of India)
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Among the IPOs expected for 2022, India’s largest LIC (Life Insurance Corporation) insurance company. The LIC IPO is scheduled to hit the market in the current quarter of January to March 2022.
By selling its stake in LIC, the government aims to achieve the divestment target of Rs 1.75 lakh crore in the current fiscal year 2021-22. The government plans to dispose of 5%-10% of shares in LIC, which is likely to bring about Rs 80,000 crore to Rs 1 crore through share sale. Certainly, this IPO will be among the largest that potential investors are eagerly looking forward to, mainly due to its sheer size as well as the strong history of LIC as the largest insurance company in India.
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After nearly 9 years since the establishment in 2013, Oyo, a pioneer in the hospitality sector, is scheduled to go public this year. It is eyeing an initial public offering of over Rs 8,000 crore through a share sale this year. The IPO is expected to consist of a new issue amounting to ₹7,000 crore and an offering for sale totaling approximately Rs1,430 crore.
When we look at OYO’s journey, from its inception consisting of budget hotels in India to the gradual expansion to holiday homes and millions of rooms across more than 80 countries, it has been a long way to go to where it is today. The company aims to value about $10 billion – $12 billion through an IPO.
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3 – Cars Ola
More than a decade after its launch in 2010, Ola Car Reservation Services Complex plans to go public in the first half of this 2022 year. The issue size for the IPO is likely to be close to INR 15,000 crore. With the expected sale of the shares, Ola investors such as SoftBank, Tiger Global and Steadview Capital are expected to exit or partially sell their stake in the company to return funds to their shareholders.
About a month ago in December 2021, Ola raised $139 million as part of a Series J funding round that includes a group of investors such as IIFL, Edelweiss and Sunil Munjal Hero Enterprise. This latest funding raised Ola’s value to $7.3 billion.
Earlier last year 2021, Ola’s subsidiary Ola Electric raised more than $200 million from some investors, and Ola took another step to enhance its geospatial services and capabilities by acquiring GeoSpoc’s geo-analytics technology platform.
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Another company standing at the forefront of its IPOs in 2022 is modern delivery and logistics company Delhivery. After a decade of incorporation in 2011, Delhivery is now said to be planning to raise Rs 7,460 crore through an initial public offering this year. It had submitted its draft prospectus to SEBI in early November 2021.
Delhivery expects to raise Rs 5,000 crore through the issuance of new shares, while it will also have an Offer for Sale (OFS) of Rs 2,460 crore, as some of its existing investors will dilute their holdings, according to a draft of the company’s red herring prospectus.
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5. Pharmacy is easy
In November 2021, PharmEasy, a digital healthcare platform, submitted DRHP to SEBI, and is expected to go public and go public this year. PharmEasy, which provides a wide range of health services ranging from tele-consultations to radiology tests to the delivery of medical products and devices to homes, plans to raise up to Rs 6,250 crore through a new issue of shares in an IPO.
According to the company’s DRHP, PharmEasy intends to use the proceeds from the IPO to invest in 3 core areas, including marketing and promotional activities, supply chain and fulfillment infrastructure, and to modernize its technical infrastructure.
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Having started operations more than a decade ago in 2011, education technology platform Byju’s plans to go public this year. It plans to raise about $4 billion from the IPO. It is reportedly in talks to announce the SPAC deal, and is eyeing a valuation close to $48 billion.
Discussions with Churchill Capital’s Special Purpose Acquisition Corporation (SPAC) about the deal, which could occur as early as mid-2022, are in advanced stages, with Byju considering a dual listing in India and the United States. Should the transaction not be completed, the company is expected to seek a listing in India in 2022.
For starters, Byju offers world-class personalized and effective educational experiences and programs for school students as well as aspirants for competitive exams like JEE, IAS, etc.
7. SBI Mutual Fund
Through the IPO route, the State Bank of India (SBI), India’s largest public sector lender, plans to offload a 6% stake in the SBI Collaborative Fund, a joint venture between SBI and France’s Amundi Asset management. Paris-based Amundi is also expected to offload about 4% of its stake in SBI money management via the IPO.
SBI’s plan to list the mutual fund arm is seen as part of its strategy to extract more value from its units after withdrawing some of its stakes in the life and card business in 2020.
The IPO of SBI Funds Management (SBI Mutual Fund) is likely to hit the market in the first quarter of the next fiscal year 2022-23, according to people close to the development. The size of the IPO could be around Rs 7,000-7,500 crore, which is expected to value the mutual fund at Rs 70,000-75,000 crore.
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