The ongoing Russia-Ukraine war and the share market turmoil may have slowed down IPO plans of several companies, beginning with giant Life Insurance Corp. A Bloomberg news report suggests that LIC’s mega IPO is set to be delayed into the next financial year, as against widely anticipated to hit the street in March this year. Subsequently, several companies waiting for LIC IPO to get out of the way first might push their public issues even farther.
BSE Sensex and NSE Nifty 50 have corrected over 3.5 per cent each since 24 February 2022, when Russian President Vladimir Putin announced military operations in Eastern Ukraine. Apart from the geopolitical tensions, inflation and rising interest rates are also among the major concerns for equity markets. Moreover, global oil prices jumped to over $110 per barrel.
There are 49 public issues which have received capital market regulator SEBI observations and are likely to hit D-Street soon, according to a report by Axis Capital. These include Delhivery, LE Travenues Technology (ixigo), VLCC Health Care, Bajaj Electronics, ESAF Small Finance Bank, One Mobikwik Systems, Go Airlines, Jana Small Finance Bank, and Utkarsh Small Finance Bank, among others.
SEBI observation received
Delhivery: Delhivery is the largest and fastest growing fully integrated logistics player in India by revenue as of Fiscal 2021. The issue size is likely to be around Rs 7,460 crore. Kotak Mahindra Capital, Morgan Stanley, BofA Securities, Citigroup Global are the BRLMs and Link Intime is the registrar of the issue.
LE Travenues Technology (ixigo): The company filed its IPO papers with SEBI last year in August. The approximate issue size is expected to be Rs 1,600 crore. Ixigo is the leading travel ecosystem for the ‘next billion users’, with their focus on localized content and app features that aim at solving problems of travelers, Axis Capital said. BRLMS are Axis Capital, ICICI Securities, Kotak Mahindra Capital, Nomura Financial, and Link Intime is the registrar to the issue.
VLCC Health Care: Axis Capital noted the approximate issue size of Rs 300 crore. VLCC, having the most diverse portfolio and presence in all service areas, has among the largest scale and breadth of operations within the Wellness & Beauty Industry in India.
Bajaj Electronics: The company could raise Rs 500 crore through initial share sale. The company is the 4th largest consumer durable and electronics retailer in India and as of Financial Year 2020. They are the largest player in the Southern region in revenue terms with dominance in the states of Telangana and Andhra Pradesh.
ESAF Small Finance Bank: The issue size of this small finance bank could be around Rs 997.78 crore. ESAF Small Finance Bank is one of the leading small finance banks in India in terms of client base size, yield on advances, Net Interest Margin, assets under management CAGR, total deposit CAGR, loan portfolio concentration in rural and semi-urban areas and ratio of micro loan advances to gross advances.
One Mobikwik Systems: It’s approx issue size is Rs 1,900 crore. The company is focused on addressing the unmet credit needs of the fast growing online transactors by combining the convenience of everyday mobile payments with the benefits of Buy Now Pay Later (BNPL).
Go Airlines: The issue size is likely to be approximately Rs 3,600 crore. The book running lead managers to the issue are ICICI Securities, Citigroup Global, Morgan Stanley.
Utkarsh Small Finance Bank: The issue size is likely to be around Rs 1,350 crore. ICICI Securities, IIFL Securities, Kotak Mahindra Capital are the book running lead managers to the issue. The registrar of the issue is KFin Technologies Private Ltd, a SEBI-registered entity, responsible for the IPO allotment and refund processing.
Offer documents filed, awaiting SEBI observations
There are 44 other issues which have filed offer documents but are awaiting SEBI observations. These are Bikaji Foods International, Life Insurance Corporation (LIC), Imagine Marketing (BoAt), FabIndia, Snapdeal, Droom Technology, Oravel Stays (OYO), Lava International, and Aadhar Housing Finance, among others.