Last Updated on May 24, 2022 by
The finance sector was amongst the worst hit when the Covid-19 pandemic struck in early 2020. But 2021 was a different story. Not only did the finance sector recover, but a whopping Rs. 1.19 tn. was raised as 63 companies went public, a record in itself. In fact, 2021 turned out to be the best IPO year in 2 decades.
Riding on this high, the market anticipates IPOs to have a great run in 2022 as well. Many companies have already cleared approvals for going public from the market regulators. The current tally is above 25 and counting.
Here’s a comprehensive guide to the upcoming IPOs in India in 2022.
Table of Contents
A summary of upcoming IPOs
It’s only the first month, and 2022 is already brimming with IPOs from a range of sectors, including EdTech, hospitality, healthcare, insurance, energy, and consumer goods. The funds raised this year are expected to cross Rs. 1 tn. mark!
Here are some of the companies that have already announced their intention to go public.
|Name of the Company||IPO size in Rs. cr.(tentative)|
|Fincare Small Finance Bank||1,330|
|SBI Mutual Fund||NA|
Please note that the date for these IPOs hasn’t been announced yet.
Which IPO will be the biggest?
One of the key elements in IPO research before investing is to study the company’s profile and estimates about the company’s performance. Let’s discuss the biggest IPO-issuing companies for 2022
NSE, the largest financial market in India, was established in 1992. It is also the 4th largest market in the world by trading volumes. In 2022, NSE plans to go public and raise nearly Rs. 10,000 cr. in one of the largest anticipated IPOs. The company’s existing shareholders include big names such as SBI, LIC, Goldman Sachs, Citigroup, etc.
In less than a decade, OYO has become one of the leading companies in India’s hospitality sector. Its upcoming IPO looks extremely promising with an expected capital raise of Rs. 8,430 cr. – Rs. 7,000 cr. in new issuances and Rs. 1,430 cr. in offer-for-sale.
Founded in 2011, Delhivery quickly became a household name in modern logistics and shipping services. In the first quarter of 2021, Delhivery earned an impressive Rs. 1,364 cr. in revenue. Now, the company plans to raise nearly Rs. 7,460 cr. in its upcoming IPO. This is likely to be 2022’s early IPOs as the company is already in the approval clearance stage.
Ola is India’s prodigal ridesharing aggregator that has the likes of SoftBank, Tiger Global, and Steadview Capital as its existing investors. Unlike many other tech companies that emerged around the same time, Ola is actually profit-making. Its big investors plan to sell their shares fully or partially in the upcoming IPO, which is set to raise as much as Rs. 7,300 cr.
- Bajaj Energy
Bajaj Energy is one of India’s largest private thermal power companies, with a total installed capacity of 2,430MW across thermal power plants. It is, therefore, not surprising that the company expects to raise a massive Rs. 5,450 cr. through its IPO. This IPO includes new issuance worth Rs. 5,150 cr. and Rs. 300 cr. offer-for-sale of old shares.
Byju’s has quickly emerged as the top leader in the fairly nascent EdTech sector. It imparts free online education to students from the 4th to the 12th grades. Further, it also provides resources for the preparation of competitive exams like JEE and NEET. The IPO, which is now in the pre-IPO phase, aims to raise Rs. 4,500 cr.
Swiggy, a millennial favorite, is India’s online food delivery behemoth that is currently in the process of also developing its grocery delivery segment. The company plans to undertake its first IPO towards the end of 2022, although information related to expected sales or dates has not yet been announced.
- SBI Mutual Fund
State Bank of India (SBI), India’s largest public sector bank, aims to put its mutual fund division, SBI Funds Management, on the market in 2022. SBI aims to sell off up to 6% of its interests in this unit in what is going to be one of the largest IPOs in 2022.
Finally, Life Insurance Corporation of India (LIC) is the most anticipated IPO of 2022. LIC, as a company, needs no introduction. Its upcoming IPO is expected to raise close to ~ Rs. 50,000 cr., the largest ever raised in Indian history. This is also a high-stakes IPO for the government as it plans to sell about 5% to 10% of its shares to achieve its fiscal deficit targets.
Disclaimer: Unless a company has filed its final Red Herring Prospectus close to its IPO date, a company is free to create addendums to the Draft Red Herring Prospectus (DRHP) – the initial IPO document – and make changes to the terms and conditions, including the amount of shares on offer, amount the company hopes to raise and the IPO date.
To summarise, 2022 is set to be an exciting year for IPOs. A record amount is expected to be raised from the markets and investors. How these IPOs perform and hold is what will prove the mettle of the companies. If you plan to apply for these IPOs, do your research thoroughly and have a verified Demat ready. Do consult your financial advisor before investing in any stock or IPO.