Upcoming IPOs in 2021 is the most exciting topic for stock market enthusiasts. At least 15 companies went public in 2020 and more than Rs 25,000 crores were raised from the IPOs. Some IPOs like Happiest Minds, Chemcon Specialty, Mazagon Dock Shipbuilders, Burger King, and Mrs. Bectors’ were subscribed more than 149 times. Mrs. Bectors signed off the year by being the highest subscribed IPO, 198 times.
2020 proved to be a good year for companies trying to raise funds through IPOs. Over a dozen companies debuted on the stock exchange and raised over ₹25,000 crores in the process. 2021 could be an even better year than 2020 for companies looking to go public. While some companies have already listed on the stock exchange, there are over a dozen more who are in the process of rolling out their initial public offerings (IPO).
And less than halfway through 2021, there are a total of 16 companies who have filed their draft red herring prospectus (DRHP), which is a document that outlines the business of the company, its financial position, the reasons for which the company is raising money and how it will use it.
In the first five months of 2021, 18 companies got listed on the stock exchange. This list includes some big names like Nazara Technologies, Indigo Paints, RailTel, Easy Trip Planners, among others. Additionally, other companies like Life Insurance Corporation of India, Bajaj Energy, and others are expected to go public this year. However, they are yet to file the prospectus with SEBI. LIC, in particular, could launch a huge IPO of ₹70,000 crores, according to some media reports.
Upcoming IPOs in 2021
Here is a list of the upcoming IPOs in 2021. the IPO dates are not published yet, these companies have given approval by the SEBI or have filed their prospectus with SEBI.
Zomato could be one of the upcoming IPOs to watch out for in 2021. Known for its food delivery business, Zomato is based in Gurugram and was co-founded by Deepinder Goyal. It counts Info Edge, Uber, Alipay Singapore and Antfin Singapore amongst its investors.
The company plans to raise ₹7,500 crores via a fresh issue and ₹750 crores via an offer for sale (OFS) by its existing investor Info Edge. It intends to use ₹5,625 crores towards funding the organic and inorganic growth over the next 5 years – organic growth refers to customer acquisition and strengthening technology and delivery infrastructure, while inorganic growth refers to acquisitions and partnerships.
2. LIC-Life Insurance Corporation of India
LIC IPO is one of the most awaited in the list of Upcoming IPOs. Finance Minister Nirmala Sitharaman announced in Union Budget 2021 that the Life Insurance Corporation of India’s (LIC) IPO will be completed in 2021. it is one of the most awaited IPO this Year. the government decided to make LIC public. LIC IPO will happen in the third or fourth quarter of the financial year 2021-2022.
3. Go Airlines
The Wadia-group-owned Mumbai-based low-cost carrier has finally filed its prospectus after abandoning it several times before. It will issue ₹3,600 worth shares via a fresh issue. It intends to use parts of the proceeds towards repayment of borrowings, leaving a little over ₹1,000 crores for expansion and corporate needs.
Kolkata-based Shyam Metalics is one of the largest makers of ferroalloys and sponge iron. Its clientele includes Jindal Stainless, Rimjhim Ispat, Posco International, among others. The company plans to raise ₹657 crores via a fresh issue and ₹450 crores via offer for sale. It intends to use the proceeds towards repayment of borrowings and also for general corporate purposes.
5. KIMS-Krishna Institute of Medical Sciences
Krishna Institute of Medical Sciences has a network of hospitals across Telangana and Andhra Pradesh with an aggregate bed capacity of a little over 3,000. The company plans to raise ₹200 crores via a fresh issue and approximately ₹500 crores via offer for sale. It intends to use the proceeds of the issue towards repaying its debts.
6.Fincare Small Finance Bank
Fincare Small Finance Bank, which targets the rural and semi-urban areas could join a growing list of small finance banks getting listed on the stock exchange. The company intends to raise ₹330 crores via a fresh issue and ₹1,000 crores via offer for sale. It has outlined that it will use proceeds from the fresh issue towards boosting its tier 1 capital base to meet future capital requirements.
CarTrade, an online auto classifieds platform, almost became a unicorn — a private company with more than $1 billion valuations — during its fundraising in 2020. When listed, it will be the first online auto classifieds portal to be publicly traded. The company plans to raise ₹2,000 crores purely via an OFS. This will allow some of its existing investors like Warburg Pincus, JP Morgan, Temasek, and others to make a partial exit.
8. Sona Comstar
Sona BLW Precision Holdings (Sona Comstar) is a Gurugram-based company that designs and manufactures highly engineered components. It will issue fresh shares worth ₹300 crores and the rest ₹5,700 crores will be via an offer for sale by an existing shareholder, Singapore VII Topco III Pte Ltd. The company intends to issue part of the proceeds towards payment of certain borrowings.
9. Nuvoco Vistas
Nuvoco Vistas is a Mumbai-based cement manufacturer, backed by the Nirma group. It is the fifth-largest cement maker in the country. The company plans to raise ₹1,500 crores via a fresh issue and ₹3,500 crores via offer for sale, wherein its promoter Niyogi Enterprises will offload its stake. It intends to use the proceeds towards repaying its debt, apart from other general-purpose requirements.
10. Aptus Value Housing
Aptus Value Housing is a Chennai-based housing finance company, backed by Sequoia Capital and WestBridge Capital. The company plans to raise ₹500 crores via a fresh issue and the remaining ₹2,500 crores via OFS. It will use the proceeds towards boosting its capital base.
11. Chemplast Sanmar
The Chennai-based company is one of the leading specialty chemicals manufacturers, focusing on PVC resin and intermediates for pharmaceutical, agro-chemical, and fine chemical sectors. It will issue fresh equity shares worth ₹1,500 crores and the rest ₹2,000 crores will be raised via offer for sale. The company intends to use up to ₹1,238 crores towards redeeming non-convertible debentures, and other general corporate purposes.
12. Penna Cement
Penna Cement is a known name in south India’s cement industry. It was established in 1991 and sells a range of cement types. The company plans to raise ₹1,300 crores via a fresh issue and ₹250 crores via offer for sale. It intends to use the proceeds for repayment of certain borrowings, meeting capital expenditure requirements, and upgrading its manufacturing facilities.
13. Devyani International
Devyani International operates popular food and café outlets KFC, Pizza Hut, and Costa Coffee. When listed, it will join the likes of Jubilant FoodWorks and Burger King India, among others. The company plans to raise ₹400 crores via a fresh issue and ₹1,000 crores via an offer for sale. It intends to use parts of the proceeds towards repayment of certain borrowings, and for general corporate needs.
14. Krsnaa Diagnostics
Krsnaa Diagnostics is a Pune-based company with over 1,800 branches across 13 states. When listed, it will join other diagnostic firms Dr. Lal Pathlabs and Metropolis Healthcare. The company plans to raise ₹400 crores via a fresh issue and ₹800 crores via an offer for sale. It intends to use proceeds of the issue towards expanding its branches in Punjab, Karnataka, Haryana, and Maharashtra, apart from repaying certain borrowings.
15. Supriya Lifescience
Supriya Lifescience is a Mumbai-based drug maker, engaged in manufacturing active pharmaceutical ingredients (API), with a focus on research and development. The company plans to raise ₹200 crores via a fresh issue and ₹1,000 crores via offer for sale. It intends to use proceeds of the issue towards capital expenditure requirements.
16. Medi Assist Healthcare Services
Medi Assist is a Bengaluru-based health-tech and insurance-tech company that administers health benefits across employers and retail customers. The company plans to raise ₹850 crores completely via OFS that will offer an exit option to existing shareholders.
17. India Pesticides
India Pesticides is an Uttar Pradesh company that manufactures agrochemicals and has a growing formulation business. The company plans to raise ₹100 crores via a fresh issue and ₹700 crores via offer for sale. It intends to use proceeds of the issue towards meeting its working capital requirements.
18. Windlas Biotech
Windlas Biotech is working in domestic pharmaceutical formulations contract development and manufacturing. The company plans to raise ₹165 crores via a fresh issue and an undisclosed amount via offer for sale. It intends to use proceeds of the issue towards capacity expansion in its plants in Dehradun.
19. Aditya Birla Sun Life AMC
Aditya Birla Sun Life AMC is a subsidiary of Aditya Birla Capital.The company files its draft red herring prospectus in April 2021. The entire issue will be an offer for sale (OFS) of 28.5 lakh shares. ABSL AMC is a mutual fund company. As per Morningstar, the company’s AUM as of March 31, 2021, was Rs 2.66 lakh crores.
Nykaa is looking at a stock exchange listing by the end of 2021 or early 2022 at a valuation of $3 billion. Recently Nykaa raised an undisclosed amount which valued the company at $1.8 billion approximately.
21. Bajaj Energy
The IPO size of the company is expected to be around Rs 5,450 crores, of which Rs 5,150 crores will be a fresh issue.The company has said that it is looking to acquire Lalitpur Power’s 1,980 MW from the proceeds of the IPO. The company is one of the largest private thermal generation companies.
22. Apeejay Surrendra Park Hotels
Apeejay Surrendra Park Hotels has got the regulatory go-ahead for its estimated ₹1,000 crores initial public offer (IPO). The IPO comprises a fresh issue of up to ₹400 crores and an offer-for-sale (OFS) of up to ₹600 crores, according to merchant banking sources.
23.Annai Infra Developers
The IPO size is expected to be around Rs 200-250 crores.The company is an engineering, procurement and construction firm in the water management and irrigation segment specifically.
24. SAMHI Hotels
The IPO size is around Rs 1,800-2000 crores.This comprises a fresh issue of Rs 1,100 crores.The company may be using the proceeds to pay off the indebtedness and for general corporate purposes.A few prominent hotels it is managing are Courtyard by Marriot in Bengaluru, few branches of Fairfield by Marriot in Bengaluru, Four Points by Sheraton Visakhapatnam among others.
25. Studds Accessories
The company is a manufacturer of helmets, motorcycle accessories and riding gears. Studds had begun its operations in 1973. The company’s managing director had said in an interview in August 2020 that the company has an approximate market share of around 30%, which it aims to scale to 40% in the next three year.
2020 proved to be a good year for companies trying to raise funds through IPOs. Over a dozen companies debuted on the stock exchange and raised over ₹25,000 crores in the process. the stock market participants are expecting more from IPOs in 2021. in this post, we discussed Upcoming IPOs in 2021. I hope this post will give details about the upcoming ipos. plan your IPOs and invest wisely.