Old and New Firms Queue Up
Firms that will expectedly hit the primary market in March 2022 quarter are:
|Firm’s Name||Expected IPO Size|
|OYO||Rs. 8,430 crores|
|Delhivery||Rs. 7,460 crores|
|Adani Wilmar||Rs. 4,500 crores|
|Emcure Pharmaceuticals||Rs. 4,000 crores|
|Vedant Fashions||Rs. 2,500 crores|
|Medanta||Rs. 2,000 crores|
|Paradeep Phosphates||Rs. 2,200 crores|
|ixigo||Rs. 1,800 crores|
According to merchant bankers, the following companies are also expected to debut with their IPO during this period:
- Healthium Medtech
- Skanray Technologies
- Sahajanand Medical Technologies
Most of the firms plan to enter the primary market with the objective to fund their inorganic and organic growth initiatives. They would also utilise the funds towards debt repayments and provide exits to current shareholders.
The growing momentum in the tech companies is attributed to their goal towards global exposure. To expand globally, these companies need capital, which is generated through these IPOs.
Moreover, anchor investors in these firms are seeking an exit, which is being offered through the initial share sale route.
But, did you know that SEBI is tightening IPO rules in the country?
The market regulator has decided to reinforce IPO rules to manage the increased volatility in the stock prices. Here are a few measures that SEBI has put forward to tackle such an issue:
- Putting a cap on the issue proceeds quantum that a company can utilise for inorganic growth prospects.
- Limiting the number of shares that selling shareholders can offer.
- Expanding the lock-up of subscribed shares by anchor investors.
Analysts predict that such a move by the market regular can raise difficulty in capital generation for a handful of firms. They also believe that these changes could have a long-term impact and affect the Indian IPO scenario in the coming years.
An Over-enthusiastic IPO Market in 2021
2021 was a blockbuster year for IPOs. Around 63 companies mopped up a massive amount of Rs. 1.2 lakh crores via initial public offerings, even as a deadly pandemic overshadowed the gloomy economy.
Apart from some of the big names, PowerGrid InvIT raised Rs. 7,735 crores through their public offering, and Brookfield India Real Estate Trust generated Rs. 3,800 crores through REIT.
As per experts, increased participation by retail investors backed by increased liquidity and massive listing gains triggered this euphoria in the IPO market during the previous year.
Experts believe that the IPO frenzy of 2021 was a global sensation. Indian firms mopped up massive capital, which was the highest in two decades. This excitement will persist in 2022, with new-age tech, healthcare, realty, and consumer firms dominating the stock market.
Frequently Asked Questions
- How many funds did India raise through IPOs in 2021?
India generated around $17 billion through IPOs in 2021.
- How many firms will join the primary market in 2022?
SEBI has approved over 35 companies to generate Rs. 50,000 crores in 2022. Meanwhile, 33 more firms are awaiting confirmation to raise around Rs. 60,000 crores.
- What are some noteworthy public offerings expected to hit the market in 2022?
Life Insurance Corporation, Adani Wilmar, Emcure Pharmaceuticals, GoAir and Gemini Edibles are a few big names queuing to debut in the primary market.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.