Economic Progress Of 2020
2020 was a roller coaster ride for the stock market. With the onset of the pandemic, the prices of stocks fell only to shoot up in December. During the month of December, the Sensex rallied to cross the 46,000 mark for the first time. The Nifty Index topped INR 13,500, setting a new closing high of INR 13,529. Good times in the market make it all the more reason to look out for upcoming IPOs of 2021.
Basis different company announcements and strategies, we have compiled a list of upcoming IPOs of 2021.
Highlights from 2020
The year 2020 was very encouraging from an IPO standpoint. There were a minimum of 15 companies which went public and raised more than INR 25,000 crore. IPOs from companies such as Mrs. Bectors, Chemcon Specialty, Mazagon Dock Shipbuilders, Burger King, and Happiest Minds were subscribed more than 149 times. Mrs. Bectors was subscribed 198 times to become the highest subscribed IPO for 2020.
Here is a list of companies which offered IPOs In 2020.
|IPO Name||Listing Date||Offer Price||Current Price||Subscribed|
|Anthony Waste Handling Cell Ltd.||01-01-2021||300.00||331.75||15.04|
|Mrs. Bectors Food Specialities Ltd.||24-12-2020||288.00||432.90||198.20|
|Burger King India Ltd.||14-12-2020||60.00||145.15||156.65|
|Gland Pharma Ltd.||20-11-2020||1500.00||2276.60||2.06|
|Route Mobile Ltd.||21-09-2020||350.00||1181.60||73.37|
|Angel Broking Ltd.||05-10-2020||306.00||356.65||3.94|
|Chemcom Speciality Chemicals Ltd.||01-10-2020||340.00||456.55||149.3|
|Happiest Mind Technologies Ltd.||17-09-2020||166.00||377.15||150.98|
|Mazagon Dock Shipbiulders Ltd.v||12-10-2020||145.00||216.50||157.41|
Which Are The Upcoming IPOs of 2021?
As per various reports and surveys, it can be comprehended that 30 companies are planning to go public. Here is a list of the upcoming IPOs of 2021.
|IPO||Tentative Date||Tentative Issue Size|
|Indian Railway Finance Corporation (IRFC)||18th Jan 2021||4,633 cr|
|Indigo Paints||20th Jan 2021||1,000 cr|
|RailTel||January 2021||700 cr|
|Kalyan Jewellers||February-March 2021||1,750 cr|
|Home First Finance Company||21st Jan 2021||1,500 cr|
|Barbecue Nation||2021||1,000 cr|
|Studds Accessories||February 2021||450 cr|
|Bajaj Energy||2021||5,450 cr|
|Laxmi Organic Industries||2021||800 cr|
|Shyam Steel||2021||500 cr|
|Policy Bazaar||September 2021||$500 million|
Insights Into Specific Companies
The IPO offered by Life Insurance Corporation of India’s (LIC) is expected to be India’s largest-ever public issue. The Oriental Life Insurance Company is the first company to offer life insurance coverage.With a tentative issue size of INR 70,000 crore, this is one of the most promising and upcoming IPOs of 2021.
Awards and recognitions
The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted Service Brand of India.
From the year 2006, LIC has been continuously winning the Readers’ Digest Trusted Brand award
Recently turned Unicorn in 2020 Nykaa is an online beauty market place, Nykaa is looking at a stock exchange listing by the end of 2021 or early 2022 at a valuation of $3 billion.
Following the implementation of the lockdown towards the end of March, Nykaa started delivering essentials to over 14,000 pin-codes across the country. After acquiring 20 addresses in March this year, Nykaa is looking to introduce its private label in the fashion category.
Their vision is to have quite a few private brands in the space of apparel, athleisure, accessories, and more and becoming a multiplatform e-commerce platform before branching out in physical stores.
Zomato is an Indian restaurant aggregator and food delivery start-up founded by Deepinder Goyal and Pankaj Chaddah in 2008. Recently, Zomato has completed its primary fundraise worth $660 million, giving the company a valuation of $3.9 billion.
Launched in Delhi 12 years ago, Zomato has grown from a home project to one of the largest food aggregators in the world. Zomato is present in 24 countries and 10000+ cities globally, enabling the vision of better food for more people.
One of the leading casual dining chains in India, Barbeque Nation pioneered the concept of “over the table barbeque” live grills embedded in dining tables – allowing guests to grill their own barbecues right at their tables.
Barbeque Nation was founded in 2006. It owns and operates 138 outlets in India, 5 outlets in UAE, 1 outlet in Malaysia, and 1 outlet in Oman.The company has not closed even a single restaurant for lack of business.
Kalyan Jewellers is an Indian jewellery showroom chain. From a single showroom, single city presence, today, Kalyan Jewellers is present across all major cities in the country and also has a presence in West Asia with over 8000 employees worldwide.
Kalyan Jewellers have filed for a ₹1,750 crore share sale. The company plans to raise ₹1,000 crores by selling new shares to fund business growth
Investment banks Axis Capital, ICICI Securities, and Citi are underwriters for the company on the IPO.
The company manufactures a complete range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties, and cement paints.
It is the fastest-growing and ranks amongst the top five paint companies in India. It is also the fifth-largest company in the Indian decorative paint industry in terms of revenue from operations for the FY2020.
The company plans to expand its manufacturing facility in Tamil Nadu to including the manufacturing of water-based paints to cater to the growing demand for these products. As on September 2020, its plant in Tamil Nadu operates at 50 per cent capacity.
Indian Railway Finance Corporation
IRFC primarily is in the business of financing asset creation for the Indian Railways or any other business entity under the Ministry of Railways. In its words, it is the “dedicated financing arm” for the Railways ministry. The company was set up in the last 1980s.
The primary objective of IRFC is to meet the predominant portion of the Extra Budgetary Resources’ (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms. The Company’s principal business, therefore, is to borrow funds from the financial markets to finance the acquisition/creation of assets which are then leased out to the Indian Railways.
RailTel Corporation a “Mini Ratna (Category-I)” PSU is one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optic fiber network on exclusive Right of Way (ROW) along the Railway track. The OFC network covers all important towns, cities and several rural areas. This covers 70% of India’s population.
Railtel was formed to create nationwide broadband, telecom, and multimedia network, to modernize train control operation and safety system of Indian Railways. RailTel’s network passes through around 5,000 stations across the country, covering all major commercial centers.
Bajaj Energy is one of the largest private-sector thermal generation companies in Uttar Pradesh and has a track record of developing, financing, and operating thermal power plants in India. It has a total gross installed capacity of 2,430MW, comprising 450 MW from five operational plants of 90 MW each, owned and managed by the company.
It is one of the largest private thermal generation companies and has a total gross installed capacity of 2,430 MW. These Power Plants have been fully operational since 2012 and possess an operational track record of more than six years.
Policybazaar.com started as an insurance comparison website. It began as a price-comparison website and an information portal for learning about insurance and insurance programs. The aim was to provide Indian insurance buyers with an online platform to compare and buy a policy plan. The website subsequently expanded to become a marketplace for insurance policies.
Policybazaar plans it’s IPO in 2021, maybe valued at over $3.5 billion. Policy Bazaar is a Leading insurance distributor in India and is consistently growing, with over 100 million visitors a year and 400,000 insurance policies sold every month. In a little over a decade, Policybazaar will account for 25% of India’s life cover.
Studds Accessories Limited is the leading manufacturer of helmets and motorcycle accessories. It offers a wide range of two-wheeler helmets and accessories and has a presence in more than 50 countries across in Europe, Asia, Latin America, and the Middle East.
Home First Finance Company
HFFC provides home-loans to low and middle-income individuals, specifically in the affordable segment. Most of their customers are first time home buyers. Loan amounts for these homes typically range between 5 lakh to 50 lakh Rupees.
Shyam Steel Group
Established in 1953, Shyam Steel Group is one of the leading TMT Bar Producers in India. The company manufactures TMT Rebar, Billets, and Sponge Iron.
It works on the philosophy to produce safe and sustainable steel and is a pioneer in the quality production of steel.
Laxmi Organic Industries
Laxmi Organics Industries Ltd. is the flagship company of the Goenka Group. The Group has interests in products such as chemicals, paper, power, and education.
The company has expanded with regard to the volume of production as well as its product portfolio.
Today, Laxmi is among India’s largest players in the Acetyls space with a capacity to produce 120,000 tons of Ethyl Acetate annually. We also have the capacity to produce 30,000 tons per year of Acetaldehyde.
Concluding Remarks – Upcoming IPOs Of 2021
Now that we have briefed you on the upcoming IPOs of 2021, we will give you a few pointers on IPOs before we conclude.
IPOs are a great investment opportunity. IPOs are a big risk big reward. Investors generally have relatively limited access to information and financial history for them to evaluate new listings.
It is important to always read the business brochure. The brochure will specify all portions of the IPO – the company, its finances, the amount of capital it expects to raise, the number of shares on offer. That’s the only way to track the financial performance of the company. Business brochures are available on SEBI’s website.
In order to check the valuation and grade of an IPO, an investor should look at the rating given to the company by SEBI. This rating is given on a five-point scale. It is estimated that a higher score leads to a higher rating.
IPOs are generally entered into by new companies which are still expanding. However, If the company does not succeed in taking off as promised after the IPO issue, its stocks may tank and you may lose your money.
This article is authored by Aryan Bharti. He is an active blogger and writes about topics such as financial planning, investments and wealth management.
If you want more information on IPOs, do check out the article – 5 Things To Know While Applying For An IPO.