What will the year 2022 ring in for the primary market? If 2021 is anything to go by, a few big-ticket IPOs in 2022 are on the anvil, with the state insurer LIC IPO among the most expected of the maiden offers in the coming year.
A look at IPOs in 2021
Looking back, the year 2021 saw a whopping 65 companies launch IPOs to raise a whopping Rs 1.3 lakh crore. This, according to reports, is the highest amount raised via IPOs during a calendar year. The earlier record for the primary market came in 2017 when over Rs 68,800 crore was raised in that calendar year. In 2020, when the pandemic took hold, the IPOs raised a collective Rs 26,611 crore, with only 15 companies going public, according to reports.
Among the leading IPOs that caught attention was the food delivery platform Zomato IPO, apart from other new-age companies such as online cosmetics and fashion platform Nykaa, payments platform Paytm, gaming and sports media platform Nazara Technologies and insurance marketplace Policybazaar. The primary market touching the high was led by the new-age tech IPOs this year. The largest IPO in 2021 was Paytm which had a size of Rs 18.300 crore, followed by Zomato at more than Rs 9,300 crore
However, the year also saw a few PSU companies such as the RailTel Corporation taking the IPO route. Another public sector undertaking that hit the primary market for PowerGrid Infrastructure Investment Trust. Railway NBFC (non-banking financial company) Indian Rail Finance Corporation, which is an Indian Railways subsidiary also took the IPO route in 2021 and was in fact, the maiden IPO of the calendar year.
The year saw the secondary market see some corrections although it managed to hit peak levels not seen thus far. The BSE Sensex touched a record peak of 62k plus levels while the NSE Nifty also crossed the 18,600 levels in 2021. Following the Sensex crash to 25k levels in March 2020, the markets staged a recovery ever since on the back of support from the central bank, relief packages and liquidity in the global markets when interest rates were maintained at the near-zero levels.
IPOs in 2022: Looking ahead
Looking at what IPOs in 2022 will bring, one of the biggest IPOs expected is the LIC IPO. According to reports, the state insurer’s IPO is expected to hit the market by March 2022. Upon listing, the LIC IPO is expected to have a market cap anywhere in the range of Rs 8 and Rs 10 lakh crore, as per news reports. Reports note that the primary market will see a lot of activity in 2022, with as many as 35 companies already with market regulator SEBI’s approvals to collectively raise Rs 50,000 crore in the coming calendar year, while another 33 companies await SEBI approval to launch their IPOs in 2022 and raise anywhere in the Rs 60,000 crore range.
Following on the trend of Indian tech startup IPOs such as Paytm and Zomato that went public and got listed in the secondary market in 2021, Oravel Stays, more popularly known as OYO is expected to take the IPO route in 2022. The IPO is expected to be in the size of over Rs 8,400 crore. Logistics startup and unicorn Delhivery is also expected to line up an IPO to raise Rs 7,460 crore, apart from digital payments platform and another unicorn Mobikwik which is expected to raise Rs 1,900 crore. News reports note that e-commerce retailer Snapdeal has also filed a draft document with SEBI to raise Rs 1,250 crore via fresh issue.
The other IPOs in 2022 in the pipeline include Adani Wilmar which is expected to be an Rs4,500-crore IPO, Go Airlines which is said to be in the Rs 3,600-crore range and Emcure Pharma, a Rs 5,000-crore initial offering.
The primary market and secondary markets are, as per experts, estimated to continue along the lines of 2021, while a lot depends on the state of the pandemic and the impact of the new variant on the economy, apart from progress on the booster shots and vaccinations across the globe.
The calendar year 2021 was the best IPO year, with 65 companies raising a collective Rs 1.3 lakh crore. If the year is anything to go by, and if the much-anticipated LIC IPO takes off in March 2022, the new year is expected to be another big year for IPOs.
What was India’s IPO record for 2021?
The year 2021 saw the largest amount raised via IPOs in India, with 65 companies raising Rs 1.3 lakh crore, beating the previous record of Rs 68,800 crore in 2017.
When is the LIC IPO expected?
The state insurer LIC’s IPO is expected to hit the market by March 2022 and once listed, it is expected to have a valuation in the range of Rs 8-10 lakh crore.
Which was the largest IPO of 2021?
The IPO of Paytm at Rs 18,300 crore was the largest one for the year 2021, followed by food delivery platform Zomato’s IPO of over Rs 9,300 crore.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.