The primary markets are going through a lull as unfavourable global macroeconomic and geopolitical concerns continue to weigh on investor sentiment. The Russia-Ukraine war, rising global crude oil prices, outflows of foreign capital from emerging markets and rising interest rates are some of the reasons behind the recent downfall in global and domestic equity markets.
Investor excitement over new public issues seems to have dried down considerably. Last financial year i.e., FY22, saw record initial public offerings (IPOs). About 71 new issues helped raise over Rs 1.22 lakh crore from the market.
However, investor response to IPOs was tepid in January and February. The mega IPO of the state-run insurance behemoth Life Insurance Corporation (LIC) was also deferred to the next fiscal amid market uncertainty. There were however a few primary issues in March such as those of Uma Exports, Veranda Learning, and Hariom Pipes Industries.
But there’s still a lot of action lined up in the primary market in the coming months. IPOs in April-May are expected to be worth over Rs 1.60 lakh crore. While some companies may wait till the LIC IPO is done, others have already announced upcoming IPOs in April 2022. The new IPOs in April will steer the trajectory of primary markets in the new financial year.
Here are some of the key companies that have upcoming IPOs in April 2022. The dates of their public issue are yet to be announced and some are yet to even finalise the issue size. This is only an indicative list as of now. We will update the list as and when the dates are finalised.
|Name of the company
|IPO size (approximate value)
|Rs 60,000 crore
|Rs 8,430 crore
|Rs 7,460 crore
|Rs 6,250 crore
|Rs 4,000 crore
|Rs 3,600 crore
|Rs 3,000 crores
|Rs 1,900 crore
Let’s look at each of the IPOs that are likely to hit the Street soon.
The biggest upcoming IPO is that of LIC. The government had postponed the LIC IPO due to the market correction and it is now expected to be launched in early FY23. On February 13, the government filed the draft red herring prospectus (DRHP) for LIC IPO with the Securities and Exchange Board of India (SEBI).
The regulator granted its approval in March. As per media reports, the government may offer more than 5% of its stake in the state-owned insurer and is looking to garner about Rs 50,000 crore ($6.6 billion) from the IPO. As per the DRHP, over 31 crore equity shares will be on offer and up to 10% of the issue size will be reserved for LIC policyholders.
OYO Rooms IPO
Hospitality start-up OYO Rooms is planning to hit the D-Street for raising around $1.2 billion. However, as per reports, the company may settle for a smaller price and lower valuations as current global crisis has affected tech stocks. Backed by SoftBank Group Corp and Sequoia, OYO had filed preliminary papers in September 2021.
The new-age logistics company Delhivery had received SEBI approval for around Rs 7,460-crore IPO in January. The company is likely to launch its IPO in April or May.
Delhivery IPO comprises fresh issuance of equity shares worth Rs 5,000 crore and an offer for sale (OFS) component of Rs 2,460 crore by existing shareholders, as per draft red herring prospectus (DRHP).
API Holdings, the parent company of pharmacy platform PharmEasy, is looking to raise Rs 6,250 crore via IPO. The IPO will be totally primary issuance of equity shares. The company had received SEBI nod for the IPO in March.
Emcure Pharmaceuticals IPO
Another expected upcoming IPO in April 2022 is of Emcure Pharmaceuticals. The Bain Capital-backed company had in December received regulatory approval to raise around Rs 4,000 crore through an initial share-sale.
As per the DRHP, the IPO comprises fresh issuance of equity shares worth Rs 1,100 crore and offer of sale (OFS) of 18,168,356 equity shares by promoters and existing shareholders.
Go First IPO
The Wadia group-backed budget carrier Go First is planning to raise up to Rs 3,600 crore through the IPO, for which it had SEBI nod in August 2021. The company, which was founded as GoAir, recently rebranded itself as ‘Go First’.
Frequently Asked Questions about upcoming IPOs in April 2022
What are the pre-requisites to apply for an IPO?
Demat Account: You must have a Demat account to invest in an IPO. Demat Account holds shares and securities electronically or in a dematerialised form.
Trading Account: You can open a trading account with any SEBI registered stockbroker, like TradeSmart Securities.
UPI-linked bank account: It is essential to have your bank account linked to UPI accounts such as BHIM, Google Pay, PhonePe, etc. for online payments. Your bank account should also be linked to the Demat account.
PAN Card: Having a Permanent Account Number or PAN number is mandatory to invest in an IPO.
Can you apply for an IPO online?
You can apply for an IPO online in two ways: via brokers or internet banking. Check the step-by-step guide below on how to apply using the two methods.
Step 1: Login to your online account with the broker. Select the IPO name from the current IPO list.
Step 2: Enter the lot size you want to bid for and the bid price.
Step 3: Type your UPI ID and hit the submit button.
Step 4: Approve the transaction on your UPI app.
You will receive the mandate notification in the UPI app. Accept the mandate and the application money will remain blocked until the IPO allotment date. You will receive an SMS from the exchange confirming your application.
Through Internet Banking:
Step 1: Log in to the Internet Banking account.
Step 2: Select the ASBA (Application Supported by Blocked Amount) tab.
Step 3: Click on the ‘Apply IPO’ option and select the IPO from the list.
Step 4: Enter all the details, such as the name, PAN, bid quantity, bid price and click on submit
How can you apply for an IPO offline?
You can also apply for an IPO offline by visiting the nearest branch of the broking firm or bank and submit an IPO application. Fill out an ASBA application and provide essential know your customer or KYC details.
Where can you get an application form for IPOs?
An application form for any public issue can be found on the website of a broker or BSE/NSE. You can download a physical copy of the form and fill in the required details and attach all the documents.
How can you check the subscription status of the IPOs in April 2022?
You can check the subscription status of any live IPO on the BSE or NSE website. Follow the below procedure to check subscription status on NSE website:
Step 1: Select ‘Market Data’ on the Home Page. Click on ‘New Public Issue’ in the drag down menu
Step 2: Select the Company name
Step 3: You can check the NSE bid details and the Consolidated bid details. The bid details of all the categories of investors are reflected.
Where can you check IPO allotment status?
You can check the allotment status of your application online, through the website of BSE or that of the IPO registrar, such as KFintech, Link Intime, or Bigshare Services.
What can you do if you do not receive allotment?
The basis of allotment gets finalised within a week of an IPO closing for subscription. If shares are allotted, then the amount gets deducted from your bank account. And if you do not receive any shares, then money gets refunded or unblocked from ASBA account after the basis of allotment finalisation.