Remarkably, the proportion of newly raised capital in IPOs for this year has surged to an eight-year high. These offerings experienced substantial gains upon listing, capitalizing on strong involvement from retail investors.
As we move ahead, the market is likely to maintain its optimistic trajectory, with upcoming issuances totaling ₹28,440 crore slated to make their way into the public markets.
Also read: Azad Engineering IPO allotment finalised. Latest GMP, steps to check allotment status online
“IPO activity has been robust this year and the momentum is expected to continue into 2024. There is eagerness among investors to tap capital markets ahead of the general elections. This seems a prudent strategy as well given that historically, Indian equities have usually done well heading into general elections,” said Mohit Ralhan, CEO at TIW Capital.
Ralhan further added, “Sentiment towards new-age companies has improved as well. Companies like Zomato, Paytm, Rategain etc. when listed in 2021 had a lacklustre debut. But over the last year, their business performance has improved, and the stocks have delivered decent returns. This will augur well for new-age businesses looking to debut on listed markets in 2024.”
Also read: 2023 in review: IPOs this year have broken records; 2024 will likely see even more IPOs, says Venkatraghavan of Equirus
Here’s a list of upcoming IPOs next year based on data available on BSE and media reports —
- Ola Electric
Ola Electric, the electric vehicle subsidiary of Ola, is poised to become one of the highly awaited initial public offerings (IPOs) in 2024. The company is targeting a fundraising range of $700 million to $800 million, which would place its valuation between $7 billion and $8 billion.
Also read: Ola Electric IPO: Checkout top 10 key risk factors from the draft papers
Despite facing obstacles such as safety-related issues and customer service concerns, Ola Electric has experienced a substantial increase in revenue. This growth underscores its swift transformation from a ride-hailing platform to a prominent player in the electric vehicle industry. The company’s strategic emphasis on sustainable transportation solutions positions it favorably in a market that is progressively embracing environmentally friendly energy alternatives.
2. FirstCry
Omnichannel retailer FirstCry is now poised to submit its draft IPO papers in the coming days after having postponed its public listing in the previous year due to volatile market conditions, according to a report by The Economic Times.
Also read: FirstCry IPO: Ecommerce platform all set to file draft papers to raise over $600 million
The company’s target for the public offering is to raise $500-600 million. Although the valuation has not been officially determined, sources familiar with the ongoing discussions suggest that it could be approximately $4 billion at the time of the IPO.
3. Awfis
Awfis Space Solutions Ltd, which is a provider of flexible workspace solutions, has submitted preliminary documents to the Securities and Exchange Board of India (Sebi) to raise capital through an Initial Public Offering (IPO).
As outlined in the Draft Red Herring Prospectus (DRHP) filed with Sebi on Friday, the planned IPO includes a fresh issue of up to ₹160 crore and an Offer for Sale (OFS) of 1 crore equity shares.
4. Unicommerce
Unicommerce, the e-commerce Software as a Service (SaaS) company, is set to embark on the path of an IPO. The startup anticipates making its stock market debut in the latter part of the upcoming year.
As reported by ET, AceVector Limited, the parent company of Unicommerce, has enlisted the services of investment firm CLSA to oversee the book-building process for the IPO.
5. Aakash (Byju’s subsidiary)
Aakash, which was acquired by the prominent edtech firm Byju’s in 2021 for a substantial $950 million, is reportedly gearing up to launch its Initial Public Offering (IPO) by mid-2024.
Since the acquisition, Aakash has witnessed a remarkable three-fold surge in revenue, with forecasts indicating a revenue target of ₹4,000 crore and ₹900 crore in EBITDA by the fiscal year 2023-24. The test-prep market, where Aakash holds a significant position, is anticipated to experience substantial growth, making the forthcoming IPO an appealing opportunity for potential investors.
Nevertheless, investor scrutiny is expected to be heightened due to recent challenges faced by Byju’s, including issues with lenders, workforce reductions, and concerns raised by auditors.
Also read: Market Outlook: Here’s why Indian stock market may stay healthy in CY24
6. PhonePe
PhonePe, a frontrunner in India’s digital payment arena, is setting its sights on an initial public offering (IPO) in the 2024-2025 timeframe. Bolstered by a $200 million investment from Walmart, which valued the company at $12 billion, PhonePe is currently in the process of raising a substantial $2 billion fund. With its strategic diversification across multiple facets of digital payments and a robust trajectory of growth, the anticipation surrounding PhonePe’s impending IPO is palpable.
7. Oyo
The eagerly anticipated initial public offering (IPO) of Oyo Rooms has been considerably delayed as the travel-booking platform endeavors to secure public funding for the substantial repayment of its debt. Following the initial IPO filing, the company resubmitted its draft red herring prospectus (DRHP) through a confidential pre-filing route with the Securities and Exchange Board of India.
However, reports suggest that Oyo Rooms has substantially reduced the size of its public listing by nearly half, aiming for a range of $400-600 billion, with the entire amount expected to be generated through a primary issuance.
8. PharmEasy
PharmEasy is contemplating a potential public offering, buoyed by its strong performance. The Tata-owned company recently garnered more than ₹3,950 crore through a successful rights issue. PharmEasy has achieved EBITDA positivity in Q1FY24, maintaining a positive trajectory.
Pending approval from the Competition Commission of India (CCI) for the rights issue, Ranjan Pai is anticipated to hold approximately 15% stake in PharmEasy. The proceeds from the rights issue are earmarked for debt reduction and fostering organic growth.
9. Swiggy
Swiggy, a prominent player in the food delivery sector, is poised to make its debut on the public market in 2024. With a valuation of $10.7 billion, the company holds a commanding position in India’s food delivery market.
The anticipated IPO for Swiggy is seen as a major landmark, underscoring the company’s impressive growth and dominant market presence. With its entry into the public markets, it would follow in the footsteps of its rival Zomato, becoming the second food aggregator to do so.
10. PayU India
PayU India, a subsidiary of Prosus, is anticipated to be prepared for an initial public offering (IPO) by the latter half of 2024. Specializing in financial services such as merchant payments and consumer credit, PayU India generated $211 million in revenue from its Indian operations in the first half of the current fiscal year.
The company’s substantial presence and growth in both the payments and credit sectors underscore the significance of its impending IPO in the fintech industry.
11. Mobikwik
MobiKwik is said to be collaborating with DAM Capital Advisors and SBI Capital Markets to facilitate its IPO, with an ambitious goal of raising approximately $84 million. Despite having postponed its IPO aspirations earlier, the company is now gearing up for a listing in 2024.
As one of India’s prominent mobile wallet and buy now, pay later service providers, MobiKwik is emblematic of the broader trend wherein numerous small- and medium-sized enterprises are opting to go public in the Indian market.
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Published: 31 Dec 2023, 09:39 AM IST