The record fundraising spree is expected continue in the new year as more companies seek to launch their share sales after 2021 turned out to be the best year for public issues in two decades for the Indian market. The higher amount of funds will be largely seen to be driven by the mega issue of state-owned Life Insurance Corporation of India (LIC) in 2022.
The insurance behemoth is planning an initial public offering (IPO) in the first half of 2022, which would be the largest IPO in the country so far. Many new-age digital players are also seen to participate in the IPO rush as companies are expected to garner up to ₹1.5 lakh crore in the upcoming year through initial share sales.
Unicorns like Delhivery ( ₹7460 crore), Droom ( ₹3000 crore), MobiKwik ( ₹1900 crore), Oyo ( ₹8430 crore), Pharmeasy (6250 crore), Ixigo ( ₹1600 crore), BYJU’S ( ₹4500), Foxconn’s India ( ₹5000 crore) and Fab India ( ₹4000 crore) have filed DHRP with capital market regulator SEBI. As per CR Forex advisors, these will be seen coming up with their IPOs in early 2022 on primary market side.
Around 35 companies have secured the market regulator’s approval for their IPOs next year, proposing to raise roughly ₹50,000 crore, according to Prime Database. Another 33 companies, awaiting the regulator’s approval, plan to raise about ₹60,000 crore, as per the report.
India recorded the ‘best IPO year’ in two decades with proceeds worth over $16.9 billion in 2021 as ample global liquidity, robust earnings and increased retail participation bolstered the initial share sales space, according to a report by global consultancy EY. The largest IPOs were of Paytm (One97 Communications) with an issue size of ₹18,300 crore, followed by Zomato at over ₹9,300 crore.
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