LIC, OYO, Delhivery IPOs in 2022; other major public issues to watch out for

It rained IPOs in 2021 so much so that the primary market broke several records and created new ones in terms of the size of initial public offering (IPOs), total fundraising, IPO subscription and even debut premium. This year, a total of 65 companies launched their IPOs which garnered over Rs 1.31 lakh crore, 74.6 percent higher from the previous record year of 2017. This IPO momentum is likely to continue next year as well since many companies are looking to go public.

Kotak Mahindra Capital Company in its latest report stated that the IPO frenzy will continue next year, adding that it will be dominated by resilient sectors such as new-age tech, healthcare, consumer, realty and specialty chemicals. The brokerage noted that IPOs worth $15 billion have already been filed with the Securities and Exchange Board of India (Sebi) and issues worth $11 billion are likely to be filed soon by several high-quality companies across large-caps and mid-caps. IPOs of new age tech companies, like Zomato and Nykaa, have already given a favourable direction to upcoming IPOs of other internet companies like Byju’s, Ola, PhonePe and Flipkart in 2022. Here are the IPOs that you need to watch out for in 2022

Life Insurance Corporation IPO: The most-awaited IPO in 2022 is that of Life Insurance Corporation of India (LIC), which is supposed to be the country’s biggest IPO ever. The issue is expected to open before the end of March. According to reports. The draft red herring prospectus (DRHP) for the issue will most likely be filed with SEBI next month. Once listed, LIC is likely to become one of the biggest domestic companies by market capitalisation with an estimated valuation of Rs 8-10 lakh crore. The central government will hold at least 75% stake in LIC for the first five years post the IPO, and subsequently hold at least 51% at all times after five years of the listing. The authorised share capital of LIC shall be Rs 25,000 crore divided into 2,500 crore shares of Rs 10 each. Up to 10% of the IPO issue size would be reserved for policyholders.

SBI Funds Management: State Bank of India is planning to list its mutual fund arm, SBI Funds Management (SBI FMPL), a joint venture between SBI and Paris-based Amundi Asset Management. The lender is planning to offload 6% of its stake in the mutual fund arm, while Amundi is likely to offload around 4% of its stake. The executive committee of central board of the bank had accorded its approval for exploring possibilities to offload 6% stake in SBI Funds Management through the initial public offer (IPO) route. Amundi said the IPO would be achieved on the Indian stock markets in 2022, subject to regulatory approvals and market conditions.

Delhivery: Gurugram-based logistics unicorn Delhivery filed for an initial public offering (IPO) in November to raise up to Rs 7,460 crore. According to SEBI filing, the IPO of Delhivery will consist of a fresh issue of shares worth Rs 5,000 crore and an offer for sale (OFS) of Rs 2,460 crore from few of the existing investors. The IPO is expected to hit the market in the first quarter of 2022. Delhivery investors Carlyle and SoftBank are reportedly looking to make a partial exit via the OFS. Private equity firm Carlyle Group, which first invested in the startup in November 2017, will be selling shares worth Rs 920 crore in the OFS.

OYO: Hospitality unicorn OYO on 1st October filed its DRHP with market regulator SEBI for an IPO to raise around Rs 8,430 crore. According to the document, OYO’s initial public offering consists of equity shares of face value of Re 1 each of Oravel Stays Limited aggregated up to Rs 8,430 crore. The offer comprises a fresh issuance up to Rs 7,000 crore and an offer for sale aggregating up to Rs 1,430 crore. The IPO will consist of 83% fresh issue and 17% OFS offer for sale. Earlier this month, hospitality industry body The Federation of Hotel & Restaurant Associations of India (FHRAI) again requested SEBI to suspend OYO’s IPO process, citing non-disclosure of an investigation against OYO for tax evasion, an allegation which the company has strongly denied.

MobiKwik: Gurugram-based digital payments unicorn MobiKwik in July filed for an initial public offering to raise Rs 1,900 crore, its DRHP showed. The Rs 1,900 crore includes a fresh issue worth Rs 1,500 crore, and an offer for sale of Rs 400 crore where existing investors can sell their stakes in the startup. The IPO is expected to hit the public markets in the first quarter of 2022.

Droom: Unicorn and automobile ecommerce marketplace Droom filed its DRHP with markets regulator SEBI in November to raise upto Rs 3,000 crore from an IPO. The public offering will include fresh issue of shares aggregating Rs 2000 crore, and an offer for sale of shares upto Rs 1000 crore by Droom Pte, which is the sole promoter of Droom Technology. Founded in 2014 by Sandeep Aggarwal, Droom, will utilise Rs 1,150 crore for organic growth initiatives including expansion to Tier III and IV cities and international expansion, apart from acquisition and marketing and branding activities for sellers and buyers. Separately, Rs 400 crore will be utilised towards funding inorganic growth, per the DRHP. The company was last valued at $1.2 billion during a $200 million pre-IPO funding round from new investors.

PharmEasy: The parent company of epharmacy unicorn Pharmeasy, API Holdings, filed its DRHP with markets regulator SEBI in November, for a Rs 6,250 crore IPO through a primary share sale. The company was last valued at $5.6 billion (Rs 42,197.79 crore) in a Rs 2,635.22-crore pre-IPO round in October. The start-up also plans to issue a pre-IPO placement offer which will be undertaken through consultation with the book running lead managers-Morgan Stanley India, BoFA Securities India, Kotak Mahindra Capital, JM Financial and Citigroup Global Markets India-for an aggregate amount not exceeding Rs 1,250 crore.

Snapdeal: Delhi-based ecommerce retailer Snapdeal has filed its DRHP with SEBI to raise Rs 1,250 crore in fresh issue of shares through an IPO. In addition, existing investors in the company including SoftBank, Foxconn and Sequoia will be selling 3,07,69,600 equity shares in the company. The company has appointed Axis Capital Limited, BofA Securities India Limited, CLSA India Private Limited and JM Financial Limited as the book running lead managers for the IPO. The firm recently converted into a public company after a resolution passed by the company. Its shareholders approved the conversion of the ecommerce marketplace to Snapdeal Limited from Snapdeal Private Limited.