Upcoming IPOs in 2021 in India: Indian companies raised over Rs 30,000 crore from the investors in the last calendar year 2020, even as COVID-19 pandemic hit the market sentiment. In the new year 2021, nearly two dozen companies are lined up to hit the capital markets with initial public offers including Home First Finance Company, Railtel, Indigo Paints, Indian Railway Finance Corporation, Life Insurance Corporation (LIC), Kalyan Jewellers and Barbeque Nation, among others. Analysts expect that the 2020 bull run of IPO may continue in 2021.
Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online that the domestic markets are in a strong bullish trend and the impact of FOMO is working well for the primary markets. The market witnessed a stronger listing gain in the last six months, the normal average listing gains remained well above 15 per cent. “This is attracting all the investors towards the IPO. In 2021, the scenario is likely to continue in the first quarter at least,” Wagh added.
Earlier this week, Sequoia Capital-backed Indigo Paints received capital markets regulator Sebi’s approval to raise about Rs 1,000 crore through IPO. According to the draft red herring prospectus (DRHP), IPO comprises fresh issue of shares aggregating to Rs 300 crore and offer-for-sale of up to 58.40 lakh equity shares by private equity firm Sequoia Capital, through its two funds SCI Investments IV and SCI Investments V, and promoter Hemant Jalan.
LIC: The most anticipated IPO of 2021
Ashis Biswas, Head of Technical Research, CapitalVia Global Research Limited-Investment Advisor, told Financial Express Online that 2021 looks to be extremely positive for the initial public offer. Biswas expects several prominent companies from Lifestyle, Education, Food and Storage, and a few from the Infrastructure sector to hit the IPO market in 2021. The factors that will play an important role for IPOs in the calendar year 2021 include the progress on economic reforms and the central bank’s intention to keep liquidity taps open. He also said that investors are eying towards the most anticipated IPO from insurance major LIC; the same valuation is expected to be more than 13 lakh crores.
“Government effort to bring back the momentum in the economy through stimulus packages, easing of doing business, and relaxing FDI norms is the key for the 2021 IPO market,” Biswas added.
Bullish trend in grey and unlisted market
Primary markets witnessed a spectacular rush in the second half of the 2020 and according to the analysts, the year 2021 is expected to be even more whopping. Abhay Doshi, Founder- UnlistedArena.com dealing in Pre-IPO & Unlisted Shares, told Financial Express Online, in grey market and unlisted market the trend seems to be highly bullish. “We may see further activity in the grey market as and when IPOs get confirmed,” he said. Hence, the trend is strong but with less activity. He expects that financial behemoth LIC’s listing may break records. Most anticipated IPOs of 2021 are HDB Financial Services, National stock exchange (NSE), Nazara Technologies.
The trend of listing the startups which is being witnessed globally will also be seen in India soon as startups like Zomato, Grofers, PolicyBazaar, Droom, Delhivery are also set to hit the markets. “We have seen a great traction in the speciality chemicals sector in listed space which is attracting many unlisted players like Anupam Rasayan and Laxmi Organics which are gearing up for the IPO,” Doshi said.
16 companies raised over Rs 31,000 cr in 2020
Besides, Suryoday Small Finance Bank, ESAF Small Finance Bank, StoveKraft, MTAR Tech, Craftsman Automation, Brookfield REIT, etc are the few key IPOs expected to get listed. According to Axis Securities note, the year 2021 is likely to see a total of 22 IPOs. Last year, out of 16 IPOs, five companies Burger King India, Happiest Minds Technologies, Mrs Bectors Food Specialities, Route Mobile and Rossari Biotech were among top listing day gainers. These 16 companies raised Rs 31,109.2 crore via an initial public offer in the calendar year 2020.