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IPO : Upcoming IPOs in April/May 2022

March 31, 2022 05:32 PM

IPO : Upcoming IPOs in April/May 2022
companies expected to hit the IPO market in the month of April / May 2022, although the dates and the price bands are yet to be announced.

LIC IPO getting postponed to FY22 will be a disappointment for the IPO markets, which was expecting the LIC IPO to actually trigger positive action in the markets. Now LIC has time till 12th May to come out with its IPO without seeking fresh actuarial valuations.

A large number of IPOs are all set to hit the IPO markets but will await greater clarity on the LIC IPO. You can see a comprehensive line-up of marquee companies in the IPO list below. Most companies are likely to wait till the LIC IPO is completed as it is likely to suck out a considerable amount of liquidity from the IPO markets.

Upcoming IPOs in April 2022

Company Name IPO Size (Estimated) Timing of IPO
MARCH 2022 LAST WEEK IPOS
 
Uma Exports Ltd Rs.60 crore 28-Mar (Open)
Veranda Learning Solutions Rs.200 crore 29-Mar (Open)
Hariom Pipes Ltd Rs.130 crore 30-Mar (Open)
IPOS SCHEDULED FOR APRIL / MAY 2022
Life Insurance Corporation (LIC) Rs.66,000 crore (approx.) 100% OFS April / May 2022
National Stock Exchange Rs.10,000 crore April / May 2022
OYO Rooms Rs.8,430 crore April / May 2022
Delhivery Rs.7,460 crore April / May 2022
OLA Cabs Rs.7,300 crore April / May 2022
PharmEasy Ltd Rs.6,250 crore April / May 2022
Bajaj Energy Ltd Rs.5,450 crore April / May 2022
Bharat FIH Ltd Rs.5,000 crore April / May 2022
Emcure Pharma Rs.4,500 crore April / May 2022
Go Airlines Rs.3,600 crore April / May 2022
BOAT Electronics Rs.3,500 crore April / May 2022
Droom Technologies Rs.3,000 crore April / May 2022
Jana Small Finance Bank Rs.2,000 crore April / May 2022
MobiKwik Rs.1,900 crore April / May 2022
Arohan Financial Services Rs.1,800 crore April / May 2022
Northern Arc Capital Rs.1,800 crore April / May 2022
Le Travenues Technologies (IXIGO) Rs.1,600 crore April / May 2022
Penna Cements Rs.1,550 crore April / May 2022
Utkarsh Small Finance Bank Rs.1,350 crore April / May 2022
Fincare Small Finance Bank Rs.1,330 crore April / May 2022
Paradeep Phosphates Rs.1,255 crore + 12 cr shares OFS April / May 2022
Sterlite Power Rs.1,250 crore April / May 2022
ESAF Small Finance Bank Ltd Rs.998 crore April / May 2022
Shri Bajrang Power & Ispat Rs.700 crore April / May 2022
Hexagon Nutrition Rs.600 crore April / May 2022
Tracxn Technologies Rs.500 crore April / May 2022
Skanray Technologies Rs.400 crore + OFS April / May 2022
ESDS Software Ltd Rs.322 crore + OFS April / May 2022

Here is a quick summary of companies expected to hit the IPO market in the month of April / May 2022, although the dates and the price bands are yet to be announced. The below list is only an indicative list as of now.

Life Insurance Corporation (LIC)

The LIC IPO will entirely be an offer sale wherein the government will hive off 5% of its stake or nearly 3.2 crore shares to the public. The size of the issue is about Rs.66,000 crore and the price band and dates are yet to be announced. LIC was originally expected to open the IPO around the 11-Mar to be able to list the IPO in FY22 itself.

However, a mix of aggressive FPI selling, Fed hawkishness, oil price spike and the Russia Ukraine war put paid to these hopes. The IPO worth Rs.66,000 crore will now happen only in FY23. The company has reserved 10% of the issue size for policyholders.

National Stock Exchange

India’s pioneer in online trading and one of the largest stock exchanges in the world in terms of derivative volumes, NSE will hit the IPO market after a long delay. The NSE has finally got the approval from the regulator to go ahead with its Rs.10,000 crore IPO.

As per extant rules, stocks exchanges cannot list in their own exchanges so NSE may look at multiple listing on the BSE and also on an international exchange.

OYO Rooms

One of India’s earliest and most successful hospitality start-ups in the digital rooms business, is planning to tap the market for raising Rs.8,430 crore.

However, it is possible that the company may settle for a smaller price and lower valuations. The OYO IPO will comprise of Rs.7,000 crore of fresh issue and Rs.1,430 crore of offer for sale by existing holders.

Delhivery

One of India’s foremost new age logistics companies is planning to tap the IPO market with a Rs.7,460 crore IPO. This will comprise of an offer for sale of Rs.2,460 crore and a fresh issue of Rs.5,000 crore.

Also Read : IPO Alert: Check the list of Latest & Upcoming IPOs in 2022

Delhivery handles end to end logistics services for most of the ecommerce players in India and services one of the largest PIN networks nationally. The IPO has been on hold for some time due to the uncertainty surrounding digital IPO performance post listing.

Ola Cabs

India’s largest local cab hailing service is planning to go public with a Rs.7,300 crore public issue. As of now Ola Cabs is yet to finalize whether it wants to go ahead with the now and if so then at what valuations and at what issue size.

It is very likely that the issue size and the valuations of Ola Cabs may be cut. Ola Cabs has also made a big bet on electric scooters as part of its EV franchise enhancement plan.

PharmEasy

API Holdings Ltd, the company that owns the PharmEasy brand is an online portal that connects pharmacies and customers and is one of the largest online retailers of medicines. The portal is also rich in content to include online doctor consultations and online prescriptions.

The issue size is expected to be around Rs.6,250 crore. The PharmEasy IPO proceeds will be largely used to defray the debt of the company.

Bajaj Energy

The Bajaj Energy IPO will comprise of Rs.5,450 crore of a fresh issue of Rs.5,150 crore and an offer for sale of Rs.300 crore. Out of the fresh proceeds, Bajaj Energy plans to use close to Rs.4,927 crore to buy the Lalitpur Power Generation company.

However, Bajaj Energy is a pure thermal energy company, but in the last few quarters, the valuation metrics of power companies are clearly shifting in favour of the renewable power companies.

Bharat FIH

Bharat FIH is the Indian arm of Foxconn of Taiwan and is largely into Electronics Manufacturing Services (EMS). The Rs.5,004 crore IPO will be equally split between a fresh issue and an offer for sale. The fresh issue component will be largely used by the company to pay a special dividend to its parent company.

One of the biggest clients of Bharat FIH in India is Xiaomi Mobiles of China. Globally, Foxconn is one of the biggest outsources for Apple Inc.

Emcure Pharma

Emcure Pharma is among the leading pharmaceutical companies in India and is based out of Pune. The company plans to come out with a public issue of Rs.4,500 crore which will comprise of Rs.1,100 crore by way of fresh issue and Rs.3,400 crore by way of an offer for sale (OFS). The fresh issue proceeds will be used to defray the loans of the company.

Go Airlines

The Rs.3,600 crore IPO will comprise entirely of a fresh issue. The issue proceeds will be used for reduction of debt including payables like the fuel dues to IOCL and lease rentals on aircraft. Go Air, as per latest DGCA data, has 9.1% market share in domestic routes.

Boat Electronics

BOAT Electronics is largely into the business of audio equipment and wearables. It has a product portfolio comprising of headphones, earphones, wireless speakers and wearables. The Rs.2,000 crore IPO will comprise of a fresh issue of Rs.900 crore and an offer for sale of Rs.1,100 crore.

The promoter and founder of the company has been a popular name and is an active participant in Shark Tank and other popular shows.

Droom Technologies

The Droom Technologies IPO will comprise of Rs.3,000 crore of fresh issue of Rs.2,000 crore and an OFS of Rs.1,000 crore. Droom offers a marketplace to buy and sell new and used cars and two wheelers and competes with the likes of CarTrade and Cars24. The new issue will be used for organic and inorganic growth in the coming years.

Jana Small Finance Bank

Jana Small Finance Bank is predominant in the rural and semi-urban areas of India with a larger goal of financial inclusion in these areas.

The Rs.2,000 crore IPO will be split into an offer for sale of Rs.1,300 crore and a fresh issue of Rs.700 crore. Being a small finance bank, it will use the funds from the fresh proceeds to spruce up its Tier-1 capital.

MobiKwik

The Rs.1,900 crore IPO of MobiKwik comprises of a fresh issue of Rs.1,500 crore and an OFS of Rs.400 crore. The issue was to be launched in the Dec-21 quarter but was postponed after the weak listing of Paytm.

MobiKwik offers a robust payment wallet as well as a special BNPL (buy no pay later) digital plan for customers and for merchants.

Arohan Financials

The Rs.1,800 crore IPO will comprise of a fresh issue of Rs.950 crore and an offer for sale of Rs.850 crore. Arohan is an NBFC and is also into microfinance serving the unpenetrated segments of the market. The Arohan Financials IPO will help boost its capital adequacy.

Northern Arc Financials

The public issue of Northern Arc Financial comprises of a fresh issue of Rs.300 crore and an offer for sale of 365.21 lakh shares. Northern Arc extends small ticket loans to individuals and to small businesses.

The fresh issue will be largely used to boost its Tier-1 capital base so that it can expand its asset book in the future with ease.

Ixigo (Le Travenues Technologies)

The Rs.1,600 crore IPO will comprise of a fresh issue of Rs.850 crore and an offer for sale of Rs.750 crore. It is one of the few artificial intelligence-based platforms for booking flights, trains and hotels and has been around for over 14 years now. While it is in the travel business, its business model is more B2B in nature.

Penna Cement

The Penna Cement IPO will comprise of Rs.1,550 crore of fresh issue of Rs.1,300 crore and an offer for sale of Rs.250 crore. This is the second attempt of this Hyderabad based cement company and will be used to reduce debt and for expansion.

Utkarsh Small Finance Bank

The Utkarsh SFB IPO will comprise of Rs.1,350 crore of fresh issue of Rs.750 crore and an offer for sale (OFS) of Rs.600 crore. Utkarsh also offers its services to the small unbanked population and will largely use the fresh funds to boost its Tier-1 capital base so as to facilitate asset book expansion in the future.

Fincare Small Finance Bank

The Rs.1,330 crore IPO of Fincare SFB will comprise of a fresh issue of Rs.330 crore and an offer for sale (OFS) of Rs.1,000 crore. Fincare also offers its services to the largely unbanked population and will use the fresh funds to boost its Tier-1 capital base so as to facilitate easy loan book expansion in the future.

Paradeep Phosphates

The Paradeep Phosphates IPO will comprise of a fresh issue of Rs.1,255 crore and an offer for sale of 12 crore shares by existing shareholders. Paradeep, based out of Odisha, is into the manufacture of phosphatic fertilizers.

Sterlite Power

The Rs.1,250 crore IPO of Sterlite Power will entirely be a fresh issue of shares. The company has been in existence for some time and will use the proceeds of the fresh issue to fund its debt repayment, apart from general expenses.

ESAF Small Finance Bank

ESAF SFB is based out of Kerala and specializes in micro loans. The Rs.998 crore IPO comprises of a fresh issue of Rs.800 crore and an offer for sale (OFS) of Rs.198 crore. The fresh issue portion will be used to boost its capital adequacy and to make funds available to on-lend in its core lending business.

Shree Bajrang Power & Ispat

The company is a major play on the metal space. It is into the manufacture of steel, iron ore pellets and sponge iron. The funds raised via the public issue will be used by Shree Bajrang Power & Ispat largely to repay its debt and deleverage its balance sheet.

Hexagon Nutrition

The company is into the business of researching and manufacturing nutrition products for the Indian market. It plans to raise Rs.600 crore through the public issue, comprising of a fresh issue of Rs.100 crore and an offer for sale of Rs.500 crore. The fresh funds raised through the Hexagon Nutrition IPO will be largely used for repayment of debt.

Tracxn Technologies

The IPO will comprise of an offer for sale (OFS) of 386.72 lakh shares by the promoters and early investors. Tracxn offers a subscription service for investment bankers, corporates and PE funds to track the private and unlisted companies in emerging technology space.

Also Read : SME IPO in the market: Upcoming, Current, and Closed SME IPOs of the Indian Stock Market

Skanray Technologies

The IPO of Skanray Technologies will comprise of a fresh issue of Rs.400 crore and an offer for sale of 141.06 lakh shares with price to be decided. The company focuses on the Indian medical devices market and designs, develops and manufactures medical devices.

ESDS Software

The ESDS Software IPO was expected to hit the IPO market in the first half of January but was put off to Feb-22 amidst negative market sentiments. ESDS issue will comprise of a fresh issue of Rs.322 crore and an offer for sale of 2.15 crore shares. ESDS is a Nashik based cloud services company catering to organizations in the private and the government sector.

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