5 Upcoming IPOs in 2021 Everyone Is Waiting For
Everyone has their eyes set on these 5 upcoming IPOs likely to come in 2021. This is not the final list but as per the news, these IPO stocks are most likely to be launched later in 2021.
These companies are likely to file or have drafted DRHP with SEBI for Initial Public Offer (IPO) to change their company identity from Private Limited to Limited. The company needs to file DRHP (draft red herring prospectus) and then final RHP (red herring prospectus) for IPO. SEBI approves the Initial Public Offer for the companies and then they go for the IPO.
The amount of money raised in IPOs this year has reached $8.8 billion, already surpassing the totals of the past three years and it’s only August right now.
Business owners, bankers, lawyers and advisers are racing to cash in on the soaring demand for fresh public offerings.
Recently launched IPO of zomato was the talk of town and everyone wanted in. The company was in deep losses, despite that the shares rose up to 70%.
Zomato has opened up people’s eyes to invest in these unicorn startups coming to public market.
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Hot Upcoming IPOs of 2021
Paytm is country’s leader in digital payments arena. The company operates in multiple areas like wallet, UPI, payments bank, E-commerce, lending, insurance, wealth management, e-games and advertising.
It has a user base of about 350 million, out of which 50 million active users, 20 million registered merchant partners and payments bank has 60 million accounts.
The UPI business has a market share of ~8% in terms of the number of transactions. It reported consolidated revenue of Rs 2,802 crore and losses of Rs 1,701 cr for FY 2021.
About the IPO
- The company has already filed it’s preliminary offering documents and is aiming to raise around 166 Billion rupees. If this really happens, this IPO would be India’s largest debut after 150 billion rupees raised by state-owned Coal India Ltd.
- As per the draft prospectus, JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are among the lead book-running managers for Paytm IPO.
- Paytm IPO comprises fresh issue of up to ₹8,300 crore, offer for sale of up to ₹8,300 crore.
2. Life Insurance Company(LIC)
In India, there are 24 life insurers currently with LIC occupying the top position with a market share of 69% in FY20. The government of India holds a 95% stake, and LIC has assets worth Rs. 34 trillion.
About the IPO
- This is one the most talked upcoming IPOs of 2021. It is expected in the third quarter of the new financial year.
- The government of India is likely to dilute not more than 10% of its entire stake in LIC.
- According to the recent news, the size of the upcoming LIC IPO would range somewhere between Rs. 70,000 crores to Rs. 80,000 crores.
Nykaa, a company founded by a woman entrepreneur in 2012, is India’s top online marketplace for women with around 15 million registered users and caters to 1.5 million orders a month.
The e-tailer company has been able to bring a massive change in beauty and skin care market. When the whole nation’s pandemic was going down during the pandemic, Nykaa managed to grow it’s revenue manifold.
About the IPO
- Nykaa plans to go public later this fiscal at a valuation of $4.5 billion.
- The size of the public offering is expected to be between $500 million and $700 million.
- Nykaa has appointed Kotak Mahindra Capital Co. and Morgan Stanley as managers for its initial public offering (IPO).
4. Aditya Birla Sun Life Asset Management Company
Aditya Birla Sun Life Mutual Fund is one of the largest fund houses in India. It is a joint venture between the Aditya Birla Group and Sun Life Financial, Canada based international financial company.
About the IPO
- Aditya Birla Capital will sell up to 2.88 million shares while Sun Life (India) AMC will sell up to 36.03 million shares.
- Aditya Birla Capital holds 51% stake in the AMC, and the remaining 49% is held by Sun Life.
- Book running managers to the issue are Kotak Investment Banking, Bofa Securities, Citigroup Global markets India, Axis Capital, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Banking, SBI Capital and Yes Securities.
- The IPO size could be around Rs 2,000 crore.
5. Bajaj Energy
Bajaj Energy along with Lalitpur Power Generation Company Limited (LPGCL) is one of the largest private sector thermal generation companies in Uttar Pradesh (Source: CRISIL Research).
The total gross installed capacity of 2,430 MW, comprising 450 MW from five operational plants of 90 MW each, owned and managed by BEL (the “BEL Power Plants”) and 1,980 MW from the power plant owned and managed by LPGCL (the “LPGCL Power Plant”).
About the IPO
- The company is looking to acquire Lalitpur Power’s 1,980 MW from the proceeds of the IPO.
- Book Running Managers to the issue are Edelweiss Financial Services Limited, IIFL, SBI Capital Markets Limited and Co-Book Running Lead Manager is IDBI Capital Markets & Securities Limited.
- 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.
This was all about the major upcoming IPOs of 2021 in India. Investing in stock market can make or break you. It’s also a part of strategy to achieve financial freedom but which IPO is worth to be putting your money in, is for you to decide.
So do your research, improve your knowledge with these best seller books about share market and let us know which stock you’re looking forward to buying.