Before we move on to our core topic for discussion- top-10 upcoming IPOs to watch out for in 2022, let’s find out how IPOs performed in 2021 and how was the market sentiment around IPOs. 

According to an Ernst & Young (EY) Global IPO report released in December 2021, IPO activity in India surged by 156 percent year-on-year- 43 deals in 2020 to 110 deals in 2021. The year 2021 witnessed an amazing year for initial public offerings (IPOs). A total of 65 companies went public through IPOs raising over Rs.131,000 crore.

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Additionally, many new-age online startups, including Zomato, Nykaa, PolicyBazaar, Paytm, and others, went public in the year 2021. What’s interesting is that most of these companies are listed well and are currently operating strong.

One97 Communication or Paytm (Rs 18,300 crore), Zomato (Rs 9,375 crore), Star Health & Allied Insurance (Rs 6,018 crore), PolicyBazaar (Rs 5,625 crore), Sona Comstar (Rs 5,550 crore), Nykaa parent FSN Commerce Ventures (Rs 5,350 crore), and Indian Railway Finance Corporation (Rs 4,633.38 crore) were among the significant IPOs of 2021.

During the year 2022 too, IPO collections are expected to reach Rs.220,000 crore. Two types of IPOs are expected to dominate the Indian equity market.

On one hand, there would be the LIC IPO, which could be worth anywhere between Rs.70,000 and Rs.90,000 crore depending on how much the government decides to dilute. On the other hand, the digital IPOs and new-age startups will be massive stories in 2022. 

With huge names like PharmEasy, Delhivery, Snapdeal, and Droom having already been announced, Byju and Swiggy are on the horizon too. 

Our top-pick: Top-10 IPOs to watch Out for in 2022

Are you looking for the Best IPO of 2022 that would appease your quest for bigger returns?  When it comes to stock market investing, almost every investor hopes to double their money on their first effort. The 5G Spectrum Auction and a possible Jio IPO will be major events in 2022.

With the start of the new year 2022, the IPO frenzy is expected to continue, with a robust pipeline of IPOs planned for this year. There are 75 companies in the IPO pipeline, 37 of which have valid SEBI observations, and the remaining 38 are awaiting market regulator approval after filing their DRHP.

Are you curious about the names? Continue reading to learn about some of the most anticipated and upcoming IPOs to watch out for in 2022.

1. LIC (Life Insurance Corporation of India) 

The IPO of India’s largest insurer, LIC (Life Insurance Corporation of India), is one of the most anticipated IPOs of 2022. The initial public offering (IPO) of LIC is expected to take place in the current quarter of January-March 2022.

The government hopes to meet its disinvestment objective of Rs 1.75 lakh crore in the current fiscal year by selling its stake in LIC. The government intends to sell 5% to 10% of its stake in LIC, which is expected to bring them between 80,000 and 1 lakh crore through the share sale. This IPO would undoubtedly be one of the largest and most eagerly anticipated by potential investors. Owing to its massive size as well as LIC’s long history as India’s largest life insurance company, LIC IPO is certainly among the top IPOs to watch out for in 2022.

2. Adani Wilmar

The IPO of Adani Wilmar- Adani Group and Wilmar Group’s joint venture, will be a fresh offering of shares. 

The fast-moving consumer goods company intends to raise Rs 4,500 crore from the primary market. The share sale will be used to fund capital expenditures for existing manufacturing facilities expansion, new manufacturing facility development, debt repayment/prepayment, strategic acquisitions and investments, and general company reasons.

3. NSE

NSE IPO is another much-awaited upcoming IPO to watch out for in 2022. NSE- the world’s largest derivatives exchange and India’s largest exchange is planning a share sale to raise Rs 10,000 crore.

Several well-known companies are among the company’s shareholders, including State Bank of India (SBI), LIC, IFCI, IDBI Bank, Goldman Sachs, Stock Holding Corporation, Tiger Global, and Citigroup.

4. OYO

Oyo, a key player in the hospitality sector, is scheduled to go public this year, some nine years after its founding in 2013. OYO has come a long way from its humble beginnings as a chain of budget hotels in India to eventually extending to vacation homes and millions of rooms in over 80 countries. Through the IPO, the company hopes to achieve a valuation of $10 billion to $12 billion. 

This year, it plans to raise over 8,000 crores through share sales in an IPO. The IPO is scheduled to include a fresh issuance of up to 7,000 crore rupees and an offer for sale of up to Rs 1,430 crore rupees.

5. Delivery

Delivery, a new-age delivery and logistics services provider, is another company in the robust pipeline of IPOs to watch out for in 2022. Delivery, which was formed a decade ago in 2011, is apparently planning an IPO this year to raise $7,460 crore.

According to the company’s draught red herring prospectus, Delivery aims to raise 5,000 crores by the issue of new shares, with a 2,460 crore offer for sale (OFS) component.

6. Ola Cabs

Ola, the ride-hailing aggregator, is looking to go public in the first half of 2022, more than a decade after its founding in 2010. Ola IPO is expected to have a size of around Rs 15,000 crore. Ola’s investors, including SoftBank, Tiger Global, and Steadview Capital, are expected to withdraw or partially sell their investment in the company through the projected sale of shares.

Ola raised $139 million in its Series J investment round, which included a slew of investors including IIFL, Edelweiss, and Sunil Munjal’s Hero Enterprise, just over a month ago in December 2021.

7. SBI Mutual Fund

State Bank of India (SBI), India’s largest public-sector lender, plans to sell a 6% shareholding in SBI Mutual Fund, a joint venture between SBI and France’s Amundi Asset Management, through an initial public offering (IPO). After divesting some of its holdings in its life insurance and cards operations in 2020, SBI’s decision to float the mutual fund arm is considered as part of a move to extract greater value from its units.

According to sources close to the process, SBI Funds Management’s (SBI Mutual Fund) IPO is expected to hit the market in the first quarter of the next financial year 2022-23.

8. Byju IPO

Byju, an ed-tech platform that began operations more than a decade ago in 2011, is planning an IPO this year. The IPO is expected to garner roughly $4 billion. It is also apparently in talks to go public via the SPAC deal, with a target valuation of around $48 billion.

Churchill Capital’s special-purpose acquisition company (SPAC) is in early talks with Byju about the sale, which might happen around mid-2022. Byju is considering a dual listing in India and the United States. If the sale falls through, the company is scheduled to file for an IPO in India in 2022.

9. Bajaj Energy

Bajaj Energy Limited (BEL) is one of Uttar Pradesh’s largest private-sector thermal power companies. The company has decades of experience in financing, construction, and operation of thermal power plants. The company has a total gross installed capacity of 2,430MW, with 450 MW coming from BEL’s five active facilities of 90 MW each and 1,980 MW coming from Lalitpur Power Generation Company Limited’s power plant (LPGCL). BEL’s power plants have been completely operational since 2012 and have a track record of more than six years of operation. 

Bajaj Energy IPO will consist of a fresh issue of Rs. 5,150 crore and a Bajaj Power Ventures offer-for-sale (OFS) of shares worth up to Rs. 300 crore (the parent company of Bajaj Energy Ltd).

10. Reliance Jio IPO

The IPO Calendar in 2022 is most likely to see the much-awaited listing of Reliance Industries telecom unit, Reliance Jio IPO.

The bullish investor sentiment surrounding a possible massive Jio IPO comes at a time when the vicious price war in India’s debt-laden telecom sector is cooling after the Big Three—Jio, Bharti Airtel, and Vodafone Idea—telecom operators raised prepaid tariffs across the board to bolster profits.

Jio Platforms, Jio’s parent company, has already raised Rs 1. 52 lakh crore from several international investors, including Facebook, Google, Intel Capital, Qualcomm Ventures, and top private equity firms like Silver Lake, Vista Equity Partners, General Atlantic, and KKR, by offloading a combined 33% stake.

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