Record fundraising spree is expected to continue in the new year as more companies look to start selling their shares after 2021, which proved to be the best year for public issues in two decades for the Indian market. High amount of money will be largely driven by the mega issue of Life Insurance Corporation of India (LIC) in 2022.
The insurance giant is making a plan Initial Public Offering (IPO) In the first half of 2022, which will be the biggest ever IPO in the country. Many new age digital players are also seen participating in the IPO rush, as companies are expected to reach 1.5 lakh crore through initial share sale in the coming year.
Unicorn like Delhivery ( 7460 cr), Droom ( 3000 crores), Mobikwik ( 1900 crores), Oyo ( 8430 cr), Pharmacy (6250 cr), Ixigo ( 1600 Cr), BYJU’S ( 4500), Foxconn India ( 5000 crores) and Fab India ( 4000 crore) has filed DHRP with the capital markets regulator SEBI. According to CR Forex Advisors, these will be seen arriving with their IPO in the primary market in early 2022.
Around 35 companies have secured market regulator approval for their IPOs next year, proposing to increase broadly 50,000 crores as per Prime Database. Another 33 companies, which are awaiting regulatory approval, are planning to raise funds near 60,000 crores as per the report.
According to a report by global consultancy EY, India recorded the ‘best IPO year’ in two decades, with ample global liquidity, strong earnings and increased retail participation in 2021 as the proceeds of over $16.9 billion led to initial share sales. strengthened the position. The biggest IPOs were of Paytm (One97 Communications) whose issue size was 18,300 crores, followed by Zomato 9,300 crores.
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