An initial Public Offering (IPO) is a process when a private company becomes public by selling its shares on a stock market, as it provides access to the public capital market.
The perk of investing in an IPO is to set the "ground level" of a company who may have high growth potential. The year 2021 had been a roller coaster ride for the stock market. India witnessed a huge number of IPO releases, starting from Indian Railways Finance Corporation Limited to CMS Info Systems Limited, with its own share of accomplishments, successes, failures and debacles. In this momentum, companies also saw an increased participation from investors.
In 2022, the enthusiasm is expected to grow with several big companies debuting in the stock market.
Table of Content
Upcoming IPOs in January 2022
Life Insurance Corporation of India Ltd (LIC)
Life Insurance Corporation of India (LIC), an Indian statutory insurance and investment corporation, was founded on 1st September, 1956. In 2021, Finance Minister of India announced a proposal to conduct an initial public offering for LIC in 2021 Union Budget. The IPO is expected to be held in January 2022.
LIC is India largest insurer, with a long history of trust. It has a market share of 49.8% and the remaining share of 50.2% is divided among HDFC Life and ICICI Prudential Life Insurance.The LIC's IPO is expected to be the country's biggest IPO raising around ₹ 70,000 Crores. The expected price band of LIC IPO is expected to be ranging from ₹ 400 to ₹ 600.
Delhivery Limited
Delhivery, an Indian logistics and e-commerce supply chain company, was founded in May 2011. The delivery and logistics services provider filed its draft prospectus with the Securities Exchange Board of India (SEBI) on 2nd November, 2021 to raise ₹ 7,640 crores through initial public offering (IPO). The company said that it will raise ₹ 5,000 crores from the issuance of fresh shares and the remaining ₹ 2,640 crores from its existing investors through their holdings.
The logistics and e-commerce supply chain company has a diverse base of 21,342 active customers. The company is planning to go live in the month of January, 2022.
Ola
Ola, an Indian multinational ridesharing company, was founded on 3rd December, 2010. Valued at over $7.3 billion, the company is looking forward to raising up to ₹ 7,000 crores. The multinational ridesharing company has already raised an elemental amount through an affiliate of global private equity firm Warburg Pincus, and Singapore state investor Temasek of $500 million into the company ahead of its IPO. Ola is working with entities like Kotak Mahindra Bank Ltd and Citigroup Inc to manage its IPO.
The company is also planning to enter the Electric Vehicle (EV) sector in the next few years.
Pharmeasy
Pharmeasy, an API Holdings Subsidiary and India's most trusted online pharmacy and medical stores offering pharmaceutical and healthcare products, was founded on 2014. The pharmaceutical and healthcare products company was valued at $4 billion after it acquired diagnostics chain Thyrocare for over $600 million in June, 2021.
The company has filed for raising ₹ 6,250 crore for its initial public offering (IPO) which is slated to go live in January 2022.
Bajaj Energy Limited
Bajaj Energy Limited, the largest private-sector thermal generation company along with Lalitpur Power Generation Company Ltd. (LPGCL), was incorporated on 27th June, 2008. The company's primary objective is to develop, finance and operate thermal power plants in India. According to its DRHP filed with SEBI, the company intends to raise ₹ 5,450 crores through its initial public offering (IPO) in which ₹ 5,150 crores are from the issuance of fresh shares and the remaining ₹ 300 crores through offer-for-sale (OFS).
The company received a nod from the SEBI in April 2019 after it filed the DRHP in April 2019.
Conclusion
These are some of the anticipated January 2022 initial public offerings. You may examine all of these companies' fundamentals and make investment decisions based on that knowledge. A business with solid foundations should be able to earn reasonable profits. You can employ an investment advisor to help you with the fundamental research and planning for your IPO investments.
Happy Investing!
