Upcoming IPOs in India (2021)
In the last five months of 2021, several IPOs have been successfully listed. These include Lodha Developers, Barbeque Nation, Kalyan Jewellers, and IRFC. If you missed them, make sure you go through this list of upcoming IPOsS for the rest of the year.
As of now, the dates and the issue size are tentative for most companies, but this piece will give you a fair idea of what’s going to be happening in the Indian IPO market for the rest of 2021. The process of applying to SEBI for listing an IPO requires submitting the draft red herring prospectus (DRHP), and most companies discussed below have already done that or are in the process of doing so.
Certain reports suggest about 30 companies will be raising over Rs 30,000 crores from the market. So, the latter half of 2021 can prove to be an exciting time for investors.
List of Upcoming IPOs
|IPO||Tentative Issue Size (Rs in crores)||Tentative Issue Date|
|Aditya Birla Sun Life AMC||–|
|Glenmark Life Sciences||1,160||2021|
|Fincare Small Finance Bank||1,330||2021|
The food-tech platform connects restaurant partners, delivery agents, and customers and caters to their varied needs. Zomato, as of December 2020, is present in 526 cities in the country, with 3,50,174 active restaurant listings. It also has a global presence in 23 countries.
Earlier this year, it filed its DRHP and proposed an offering of Rs 8,250 crores. This is broken down into fresh equity shares of the company worth Rs 7,500 crore and a stake of Rs 750 crore up for sale by Info Edge India Ltd., one of the earlier investors of Zomato. Zomato plans to use the proceeds for financing organic and inorganic growth activities.
- Aditya Birla Sun Life AMC
In April this year, Aditya Birla Sun Life Asset Management Company filed the IPO papers. The company is a mutual fund company and is a subsidiary of Aditya Birla Capital. A 51% stake is held by Aditya Birla Capital, and the remaining 49% is held by Sun Life.
Aditya Birla Capital is set to sell about 28 lakh shares it holds in Sun Life AMC, and Sun Life itself will sell around 3.6 crore shares. Together, these equity shares make up about 13.50% of Sun Life’s paid-up share capital.
As announced by Finance Minister Nirmala Sitharaman in the Union Budget 2021, LIC’s IPO will take place in 2021. The proposed issue size is about Rs 70,000 to 80,000 crores. Around 10% of this is to be reserved for LIC policyholders.
GoAir is an airline controlled by the Wadia Group that filed a draft prospectus to raise around Rs 3,600 crores. After 15 years of flying, GoAir has rebranded itself as Go First, and one of the targets of its IPO is to raise funds to repay debt. It owes about Rs 2,000 crore to Indian Oil Corp for jet fuel, which it aims to clear.
- Nuvoco Vistas
The cement company Nuvoco Vistas is owned by Nirma Group. Through its IPO in 2021, it plans to raise Rs 5,000 crore. It’s proposing to have a fresh issue of Rs 1,500 crore, and for the rest, there will be an offer for sale.
The Rs 3,500 crore offer for sale will be by Niyogi Enterprise Pvt. Ltd., one of its promoters holding a massive stake of 86.56% in the company. The plan is to use the proceeds from the fresh issue for repaying the company’s borrowings in whole or part.
The beauty and personal care online retailer that started its journey in 2012 and was seed-funded by friends and family is now valued at approximately $1.8 billion. Nykaa is expected to list at the stock exchange by the end of 2021 or the start of 2022. The expected valuation for the listing is $3 billion.
- Penna Cements
Penna Cements has filed its draft papers with SBI for an IPO and a fresh issue of Rs 1,300 crore. It also has an offer for sale of Rs 250 crore by PR Cement Holdings Ltd., which is its promoter. The proceeds from the IPO are to be used for the payment of debts up to Rs 550 crore, as well as upgrading raw materials and setting up a plant for waste heat recovery.
- Glenmark Life Sciences
The company recently got approval from SEBI to raise funds through an IPO. Glenmark Life Sciences is going to issue fresh shares worth Rs 1,160 crore and have an offer for sale of about 73.05 lakh shares at Rs 2 each. The company is one of the leading developers and manufacturers of select high-value APIs (active pharmaceutical ingredients) that are non-commoditised.
- Fincare Small Finance Bank
The microfinance company is based out of Bangalore and plans to raise Rs 1,330 crores through its IPO. It will comprise a fresh issue of Rs 330 crore, and the rest will be an offer for sale by Fincare Business Services Ltd., the bank’s promoter. Fincare Small Finance Bank plans to use the proceeds of the freshly issued shares towards the capital requirement.
- Bajaj Energy
Bajaj Energy is one of the largest private thermal generation companies in the country. It plans to acquire Latipur Power’s 1980MW with the help of the IPO proceeds. The proposed IPO is Rs 5,450 crores. The majority of it, that is Rs 5,150 crores, will be a fresh issue of shares.
- Devyani International
The company is the biggest franchise of US-based fast-food company Yum! including brands such as KFC, Pizza Hut, Costa Coffee, etc. Devyani International has around 655 stores across India, Nigeria, and Nepal. It plans to raise about Rs 1,400 crores through its IPO, which it will use for repaying its borrowings of about Rs 360 crores and the rest for general corporate purposes. Rs 400 will be a fresh issue, while the remaining will be an offer for sale.
- Studds Accessories
Studds Accessories began its operations in 1973 and is a manufacturer of motorcycle accessories, helmets, and riding gear. In 2020, the company’s MD stated that Studds Accessories has a market share of approximately 30%, which it aims to scale within the next three years to 40%. Currently, it has filed a DRHP with SEBI to issue its shares to the public.
- CarTrade Tech
CarTrade Tech is an online auto classifieds platform that helps customers find used and new cars. It is backed by the American company Warburg-Pincus. CarTrade Tech’s IPO consists of a pure offer for sale of 1.61 million shares. These shares are owned by CMDB II, which holds an 11.93% stake in CarTrade Tech currently.
- SAMHI Hotels
SAMHI Hotels owns several prominent hotels in the country, such as Courtyard by Marriott, Bengaluru, Four Points by Sheraton, Visakhapatnam, and Hyatt Regency, Pune. The company’s IPO size is around Rs 1,800 to 2000 crores, out of which Rs 1,100 is a fresh issue. SAMHI Hotels plans to use the IPO proceeds to pay off its debts and for other corporate purposes.
- India Pesticides
India Pesticides is an agrochemical R&D company that is looking to utilise the proceeds of its IPO for fulfilling its working capital requirements. The company’s IPO is of Rs 800 crores, of which Rs 700 crores will be an offer for sale, while the remaining Rs 100 crores will be a fresh issue of shares.
Now that you have a fair idea of the upcoming IPOs in India in 2021 with the company backgrounds and IPO issue size, you can plan your next moves accordingly. It’s important to take a deeper look into the pros and cons of each company’s IPO and the foundations of the firm before you go ahead and make an investment. You also need to consider which of your investments among the various companies will align with your financial goals.
A few things to keep in mind when investing in the upcoming IPOs is to know how the company will utilise the proceeds. If the company plans to use the proceeds entirely for debt repayment, then you may want to reconsider. At least a part of the proceeds should be used for general corporate affairs. You should also take a look at the company’s valuation, and you can compare it with the valuation of other companies in that industry to know where it stands. Another thing to keep in mind is the promoters of a company may not also guarantee the success of its IPO.