These Big IPOs Will Collect Rs 1 Lakh Crore+ In 2022: Expected IPO Launch In 2022

With 2021 nearing its end, all eyes are trained on 2022 when several big-name IPOs await.

Experts speculate that IPOs set to hit the market in the next year including that of LIC will mop up over Rs 1 lakh crore worth of public issues.

Pro-Business Measures

Measures taken by the government and the RBI have led to an increase in the flow of foreign money which will serve to boost the economy.

Other factors behind more and more companies going on fundraising through public issues are infrastructure, manufacturing and digitalisation along with increased participation of domestic retail investors.

Record Year

Just this year, 47 companies raised Rs 86,650 crore through IPOs, setting a record. 

Some of the biggest ones were Zomato, Power Grid Infrastructure Investment Trust, Gland Pharma, Sona Comstar and Nuvoco Vistas Corporation.

For next year, big names like LIC, NSE, Paytm, etc hold great potential to give impressive listing gains. Read on to learn more about the biggest 4 to watch for. 

LIC IPO

This one is expected to happen in the last quarter of FY22 and will be India’s biggest-ever with the government selling its stake of 5-10%.

This IPO is crucial for the government to meet its disinvestment target since it could fetch between Rs 600 bn and Rs 800 bn.

It is the most profitable government-owned company and enjoys dominance with a market share of 49.8%.

Foreign investors could also be brought on board to own as much as 20%.

Byju’s

The edtech firm is India’s most valuable startup.

Through its IPO next year, it plans to raise between $400 m to $600 m.

Its pre-IPO fundraise is expected to close in a few weeks, giving it a valuation of about $21 bn.

This will likely be split roughly evenly between equity and debt.?

Prominent global investors include Mark Zuckerberg’s Chan-Zuckerberg Initiative, Naspers, Tiger Global Management, and private equity giant Silver Lake Management.

Ola

The ride-hailing aggregator is considering a public offer early next year with plans to raise at least $1.5-2 bn.

This pegs its valuation at $12-14 bn.

The company is profitable with a standalone operating profit of Rs 898m for the fiscal year 2021 versus a loss of Rs 6.1 bn a year ago.

Delhivery

The logistics company intends to raise $400-$500 m via its IPO.

The issue size is expected to be around Rs 74.6 bn of which Rs 50 bn will be via a fresh issue and Rs 24.6 bn from an offer for sale.

Existing shareholders to sell their stake are China Momentum Fund (Deli CMF) – Rs 4 bn, Carlyle – Rs 9.2 bn, SoftBank – Rs 7.5 bn, and Times Internet – Rs 3.3 bn.

The likely valuation expected via the issue is around $5.5 bn.

Through its proceeds, it will fund organic growth initiatives and inorganic growth through acquisitions and other strategic initiatives.

Other Big Names 

KFC operator Sapphire Foods India (Rs 2,073 crore) and Latent View Analytics (Rs 600 crore) will also launch their IPOs in the coming week.

Unicorns and market disruptors like Flipkart, PhonePe, OYO, etc. plan to get listed in the coming future.