Emcure, ESDS Software, Adani Wilmar, MobiKwik, Go Airlines among 38 approved IPOs

IPO 2022

Stock market experts are confident that 2022 will be another strong year for the primary market with share sales through initial public offerings, including from Life Insurance Corporation of India, likely to exceed the previous year’s level.

Their views are supported by expectations of strong economic and earnings growth that can ultimately boost market sentiment.

Their confidence also stems from the number of companies that have already received regulatory approval for their IPOs and those awaiting approval. The ratio of approved IPOs and those awaiting approval is almost equal – so far 38 companies have received the nod from the Securities and Exchange Board of India and 36 companies are awaiting Sebi’s observations.

“There are 37 issues where Sebi observations have been received and are still valid for launching IPOs, while total 37 offer documents have been filed and awaiting Sebi observations,” Axis Capital said in a report published earlier in January.

Since the report, GPT Healthcare also received the nod from Sebi to go ahead with its IPO plan.

Experts said more than 20 companies are expected to launch their IPOs in the first quarter of CY22 including Emcure Pharmaceuticals, ESDS Software Solutions, AGS Transact Technologies, Tracxn Technologies, Adani Wilmar, ESAF Small Finance Bank, Go Airlines, Arohan Financial Services, Paradeep Phosphates, One MobiKwik Systems, and Skanray Technologies.

Also read - LIC firmly on course for IPO listing in March 2022: Chairman MR Kumar

Life Insurance Corporation of India, the country’s largest life insurer, is expected to hit Dalal Street in the current quarter with an offer in the range of Rs 70,000-1,00,000 crore. The state-owned company is yet to file its draft prospectus with the regulator.

Also read - LIC likely to file IPO papers by third week of this month: Report

“In this quarter itself, over 20 companies are expected to tap the markets to raise about Rs 45,000 crore collectively,” said Yesha Shah, head of equity research at Samco Securities. “Additionally, as LIC goes public with its mammoth issue, 2022 can potentially overshoot 2021 in terms of fundraising. If the robust momentum in the primary markets continues, 2022 can be a record-breaking year for IPOs.”

IPOs worth a record Rs 1.3 lakh crore hit the primary market in 2021, including those from Paytm, Zomato, Nykaa, Star Health and PB Fintech. The momentum of buying was largely supported by the record high rally in the secondary markets and the ample availability of liquidity in a low-interest rate environment.

Among the other expected IPOs, Veeda Clinical Research, Keventer Agro, Ixigo (Le Travenues Technology), Sterlite Power Transmissions, Godavari Biorefineries, VLCC Health Care, India1 Payments, Healthium Medtech, Puranik Builders, Prudent Corporate Advisory Services, Penna Cement Industries, Fusion Micro Finance, Chemspec Chemicals, and Utkarsh Small Finance Bank have received the regulator’s nod, according to Axis Capital.

Snapdeal, Delhivery, API Holdings (Pharmeasy), Aether Industries, Protean eGov Technologies, Capillary Technologies, Rainbow Children’s Medicare, TBO Tek, Bharat FIH, Syrma SGS Technology, eMudhra, Droom Technology, Radiant Cash Management, Oravel Stays (OYO), Lava International, CMR Green Technologies, and Vedant Fashions (Manyavar) are among the 37 companies that are yet to receive approval for their IPOs, Axis Capital said. These companies filed their draft papers during September-December 2021.

Also read - Boom to continue | Rs 2 lakh crore IPOs likely in 2022 but all eyes on valuations

Shah said the IPO pipeline for 2022 looks solid with more than 30 approved IPOs and more awaiting approvals.

“As 2021 proved the market’s acceptance of new-age businesses, plenty more among India’s biggest startups like Flipkart, Ola, Pharmeasy and Delhivery are gearing up for their D-Street debuts. Apart from these, Adani Wilmar, Emcure Pharmaceuticals and Vedant Fashions, among others, are expected to float their primary offerings,” she said.

Divam Sharma of Green Portfolio said 2022 should be a better than 2021 for IPOs as the water has been tested for startups with the Nykaa, Zomato and Paytm offers.

“There might be questions on valuations, but the interest from investors towards these new-age companies is huge. Companies like Pharmeasy, Delhivery, MobiKwik, Ola and Oyo are all gearing up for listing on the bourses,” Sharma said.

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