Encouraged largely by money coming back to the table, Indian market will see several companied go public in 2021 just like they did in 2020.
A pick up investment activity is expected due to an imminent economic recovery on the cards, an increase in global risk appetite, and the ongoing positive stock market sentiment. IPOs raised Rs 12,362 crore in 2019, and around 30,000 crore in 2020 which is more than double to the previous year. According to experts, 2021 is poised to match these numbers.
SMEs and MSMEs such as Kalyan Jewellers, Barbecue Nation, PNB Metlife Insurance, JSW Cements, and Indian Railways’ finance arm, among others are the names which are waiting in the wins to go public
Industry-defining startups such as Flipkart, Delhivery, Policybazaar, Nykaa, and Grofers are expected to seek stock market listings too.
Earlier this week, even InMobi Founder and CEO Naveen Tewari told YourStory that the startup is “certainly excited” about the possibility of an IPO (initial public offering) and is “evaluating it very, very strongly”.
The first company in India to achieve the unicorn status in, InMobi is likely to issue guidance on its IPO in a few quarters, Naveen said, although he did not state a definitive timeline for the listing.
Here’s a look at some prominent IPOs on the cards for 2021:
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LIC
LIC is one of the most awaited IPOs in this year. LIC’s 10 percent stake sale on the capital markets is touted to be the biggest in the history of India. There are plans by government to raise nearly Rs 1 lakh crore through the IPO. The IPO which was expected in the second half of last year was postponed due to the pandemic and is most probably expected in first half of 2021.
Grofers
Softbank-backed Grofers which had earlier planned to go public in 2022, later revised its plans to go public 2020, only to postpone it due to the pandemic.
As the number of orders on the platform increased, company saw its topline skyrocket during the COVID-19 lockdown months. Albinder Dhindsa, CEO and Co-founder told PTI he expects the company to hit the capital market by the end of 2021.
Zomato
The food delivery startup backed with giants like The Ant Financial and Tiger Global-backed startup, saw its revenue nearly double in FY20. Expected to be in the first half of 2021, it is definitely one of the most awaited IPOs this year. It recently raised $660 million in a round that saw participation from nearly 10 new investors, as well as Tiger Global and other existing investors, at a valuation of $3.9 billion
Nykaa
According to Bloomberg, the online cosmetics retailer is planning its IPO at a $3 billion valuation. Falguni Nayar, Founder and CEO had told the plans to list the company in next two years. Reportedly, Nykaa is considering a domestic listing, as well as evaluating an overseas stake sale.
Flipkart
According to news reports, Walmart CEO Doug McMillion recently reiterated the company’s plans to see Flipkart go for an overseas sale – either in Singapore or the US. Flipkart seems to be rejigging its board in preparation for the IPO. It recently appointed CEO Kalyan Krishnamurthy to the board, along with three others. It also hived off its high-growth payments unit PhonePe into a separate entity and gave it the rights to appoint its own board of directors. Reports suggest that Walmart has hired Goldman Sachs to underwrite this IPO.
Ola
Ola Co-founder and CEO Bhavish Aggarwal confirmed that the ride-sharing unicorn is eyeing an IPO in the next two years — and 2021 could be it. At the time, Bhavish told YourStory that he was “absolutely focussed” on taking the company public, and that he would do it in India. The Softbank-backed startup is likely to begin the IPO process by the end of March, media reports suggest.
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