Something new happens every day around the world, and some of them are just mind-blowing. There is also another place where new things take place every day, and these new movements bring in drastic changes. We are talking about the IPO market and the new companies that go public all the time. What a lot of changes they bring forward – don’t they?
Before that –
What is the Meaning of an IPO?
The Initial Public Offering, or IPO, is a one-of-a-kind process that allows a private firm to become a public company by issuing shares. The issuance of public shares allows the company to raise capital while also providing an outstanding chance for the general population to invest and earn returns on that investment.
A private company expands at first with its early investors, founders, and stakeholders. When a firm achieves a specific goal, the management realizes that it is stable enough to handle SEC (Securities And Exchange Commission) laws, grow, and diversify utilizing money from the general public; the company decides to issue an Initial Public Offering. Through this, the general public is given a stake in the firm in the form of shares.
New IPOs are Coming Out Right Now!
In India, 2021 has been an exceptional year for initial public offerings. In 2021, the market saw a record number of enterprises listed. This has been made feasible by the government’s pro-business policies, as well as fast digitization. There has also been a continuous growth of participating investors.
Experts predict that the IPO market will see a similar surge in 2022. Let’s look at some of the future IPOs that investors are anticipating.
Here is some of the upcoming IPO list you would like to see to know:
Arohan Financial specializes in offering microfinance solutions to unbanked people. It has filed an Rs. 1,800 crores DRHP with the market regulator. This includes Rs. 850 crores in new equity shares. The remainder would be made up of secondary components totaling 2,70,55,893 shares.
MobiKwik, a leading digital payment provider, has filed for an initial public offering (IPO) in July 2021. MobiKwik IPO would be a combination of a fresh equity share issue of Rs. 1,500 crores combined with an offer for sale by chosen promoters and shareholders for Rs. 400 crores. Currently, the platform serves 3 million retailers and over 120 million customers across the country.
Leading cement company Penna Cement is planning to generate Rs. 1,550 crores through its first public offering. This IPO would consist of a new share offering for Rs. 1,300 crores and an OFS worth Rs. 250 crores. It has already received approval from SEBI to launch its IPO. Penna Cement has a substantial presence in Eastern and Southern India, with a manufacturing capability of around 10 million tonnes per year.
Fincare Small Finance Bank
Fincare Small Finance Bank filed for an IPO in the month of May 2021. This IPO will be a combination of new share issuance worth Rs. 330 crores and a share sale for Rs. 1,000 crores. Between FY18 and FY20, it also had the highest growth rate in India among all small financing entities.
API Holdings, the parent company of India’s top digital healthcare platform PharmEasy, has filed for IPO in November 2021 with market regulator SEBI. The PharmEasy IPO will be worth Rs. 6,250 crores. This will be a completely new share offering. This IPO will not result in any shareholder or investor selling their position in the company.
Bajaj Energy is a private key operator in the thermal power generation industry. Its total capacity is 24,330 MW. The company wants to raise Rs. 5,450 crores through this IPO. The Bajaj Energy IPO would include a fresh issue share of Rs. 5,150 crores as well as an offer for the sale of Rs. 300 shares.
Gemini Edibles and Fats
Gemini Edibles, one of the biggest manufacturers of sunflower oil, will raise Rs. 2,500 crores through an initial public offering. It will be purely an offer for sale, and the business would not get any proceeds from its public offering. One of the biggest investors selling shares worth Rs. 750 crores is Golden Agri International Enterprises.
ESAF Small Finance Bank
ESAF Small Finance Bank, founded in 2016, is one of the newest members in the small finance market. However, it has grown rapidly in the last four years, with over 400 outlets spread over India. The primary issue for the Rs. 998 crore ESAF Small Finance IPO would be Rs. 800 crore. The remainder will be an OFS from significant investors such as PNB Metlife and Bajaj Allianz.
VLCC Health Care is one of India’s most well-known health and beauty companies. It filed its DRHP with the market authority for its IPO in September 2021. This IPO will include a new share issue of Rs. 300 crores, as well as an offer for sale from existing shareholders and promoters. The profits from its first public offering will be used to establish new wellness centers in India and the Gulf area.
Century Metal Recycling
Century Metal Recycling has filed with the market regulator its DRHP for a public offering. It is India’s largest recycling company in the aluminum recycling business. With an annual production base of 2,18,000 metric tonnes, CMR is also the largest manufacturer of aluminum and zinc die-cast alloys.
This is just a small part of the whole part, given that it is much easier to go public these days; there are a lot more companies that go public quite often. But, once you know these few, it gets easier to know about the rest.