Upcoming IPOs in India 2021, read to know more
The IPO market is expected to see a variety of major big releases because of the strong market momentum that guided Sensex and Nifty to record highs in 2021.
Sixteen initial public offers (IPOs) hit D-Street in CY2020, from which 15 were launched in the second half of the year. Coming to 2021, investors will get to see a string of IPOs, given the recovery in the market and companies looking to raise funds following a subdued year, marred by the pandemic. With the economy making a recovery post-pandemic, here is a look at some of the upcoming IPOs of 2021 that investors should keep an eye on, however, before that here’s a glimpse for the new investors revolving around how an IPO works and what is an IPO.
What is an IPO?
The initial public offering (IPO) is a process by which a private company becomes a publicly-traded company by offering its shares for the first time to the public.
How to apply for IPOs?
Nowadays, it has become simpler to register for an initial public offering, because of the online registration process. In India, most national banks and popular stock brokers provide facilities for online IPO applications. An investor must open a Demat account or a trading account with the brokerage institution that provides IPO service in order to apply online.
IPOs Listed in 2021
|Issuing Company||Issue Price (Rs per share)||Listing Premium/Discount|
|IRFC||Rs 26 per share||-4.23%|
|Indigo Paints||Rs 1,490 per share||75%|
|HFFC||Rs 518 per share||19%|
|Stove Kraft||Rs 385 per share||21-29%|
Major Upcoming IPOs to Watch in 2021:
- Life Insurance Corporation of India (LIC)
In the 2021 Union Budget, finance minister Nirmala Sitharaman confirmed that the IPO of the Life Insurance Corporation of India (LIC) will be completed in 2021. Minister of State for Finance said that up to 10% of the LIC IPO issue size will be reserved for policyholders. It is reported that the government is aiming to collect funds to the extent of 80,000 crores through this IPO. The path seems to be clear for an IPO by India’s largest institutional investor, whose public offer, as per some analysts, will be the biggest in India’s history.
- Lodha Group
The Mumbai-based Macrotech Developers, formerly known as Lodha Developers, on February 16, filed a draft red herring prospectus (DRHP) for its proposed Rs 2,500 crore IPO with capital market regulator SEBI.
India’s largest insurance aggregator is set to launch a Rs 4,000-crore initial public offer (IPO). As per sources, the Gurugram-based company has invited proposals from at least eight investment banks for the proposed IPO. Policybazaar plans to secure nearly $250 million in a $2 billion-plus valuation funding round before an initial public offering in September 2021. Info Edge being an early investor, Policybazaar was founded in 2008. With more than 90% market share, Policybazaar is the biggest online insurance firm in India.
- Arohan Financial Services
The Kolkata-based microfinance lender has filed a draft red herring prospectus (DRHP) for its IPO with an issue size of around Rs 1,750-1,800 crore.
- Seven Islands Shipping
The Mumbai-based company has filed papers with SEBI for a Rs 600 crore IPO.
The beauty startup is planning an, on a valuation of $3 billion. The startup founded by Falguni Nayar is conducting deliberations that could soon pay for a market sale.
- Kalyan Jewellers
The Kerala-based retail jewellery firm is all set to hit the market with a Rs 1,750-crore initial offering. The firm, backed by Warburg Pincus had received SEBI’s approval in October 2020. Kalyan Jewellers is planning to raise around Rs 1,750 crores through its IPO. The IPO is set to offer a fresh equity issue of 1000 crores. The company has posted operating sales of 10,181 crores, up from 9,814 crores in the last financial year.
- Bajaj Energy
One of the largest thermal generating firms in the private sector, Bajaj Energy, whose operations are based in UP, is expected to launch an IPO of Rs 5,450 crore of which Rs 5,150 crores would be a fresh issue. The issue date is yet to be announced. Bajaj power ventures promoter is providing 300 crores of scrips. The Promoters of this company are Shishir Bajaj, Minakshi Bajaj, Kushagra Bajaj and ApoorvaBajaj Bajaj Energy Limited is one of the largest thermal generating firms in the private sector in Uttar Pradesh.
The food delivery startup backed is expected to launch an IPO in the first half of 2021. Zomato had also acquired Uber Eats during FY20 to become the business leaders in the delivery industry. It is speculated that Zomato is looking for an IPO by June this year, valuing the firm on the stock sector at $6-8 billion. The Ant Group once held a 25-26% stake in Zomato. The Economic Times announced that current investors Tiger Global, Kora Investments, Steadview, Fidelity, Bow Wave, Vy Capital and new sponsor Dragoneer Group will participate in the funding round.
The leading payments company, founded in 2010 is likely to launch its IPO this year. Softbank, Ant Financials, T Rowe Price and Discovery Capital are the main investors. Ant Financials is the largest investor with a 40% stake in the firm. The business has 150-200 million daily users and it is scheduled to go public soon. Digital payments are at a significant milestone in India, with mobile payments dependent on UPI is expected to increase to over 60% of CAGR over the next five years.
Apart from these other IPOs that are in focus are Barbecue Nation Hospitality, Ola, Byjus, Delhivery, Suryoday Small Finance Bank, Laxmi Organic Industries, Craftsman Automation, Apeejay Surrendra Park Hotels, Shyam Steel, Annai Infra Developers, SAMHI Hotels and Studds Accessories.
Upcoming IPOs in 2021
|IPO||Tentative Issue Size (in Rs Crores)*||Tentative Date*|
|Kalyan Jewellers||1,750||January to March 2021|
|Studds Accessories||450||February 2021|
|Suryoday Small Finance Bank||400||2021|
|Laxmi Organic Industries||800||—|
|Craftsman Automation||150 +||—|
|Apeejay Surrendra Park Hotels||1,000||2021|
|Annai Infra Developers||200-250||2021|
|*Both, the issue size and date, is tentative and might vary once the issue goes live in the markets.|
(Data table source: Groww)