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At least 15 companies went public in 2020 and more than Rs 25,000 crores were raised from the IPOs. Some IPOs like Happiest Minds, Chemcon Specialty, Mazagon Dock Shipbuilders, Burger King and Mrs Bectors’ were subscribed more than 149 times.

Mrs Bectors’ signed off the year by being the highest subscribed IPO, 198 times.

SBI Cards and Payment Services had the largest issue size, more than Rs 10,000 crores.

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Highest Subscribed IPOs in 2020

During April- September 2020, 63 lakh new demat accounts were added as compared to 27.4 lakh accounts added during the same period last year. This is an increase of around 130 %.

At the end of October 2020, there were 206 lakh demat accounts at  NSDL  and  270  lakh demat accounts at CDSL. This brings the total to 476 lakh Demat accounts in India.

Here’s a graph of the total number of Demat accounts in India that were there at the end of each of the months:

demat accounts in India

New Demat accounts, high retail investor subscriptions and strong performance of few of the IPOs in 2020 presents a nice precursor to 2021.

While we do not have a definitive list of IPOs for the year 2021, some reports suggest that around 30 companies are planning to raise more than Rs 30,000 crores from the markets.

Here are few companies that are expected to go public, or in other words, are expected to launch their IPOs in 2021. Most of these IPOs were to be launched in December 2020, but for reasons unknown have been postponed.

IPO Tentative Issue Size (in Rs Crores)* Tentative Date*
LIC 70,000
Nykaa 2021-22
Indian Railway Finance Corporation (IRFC) 4,633.38 January 18-20, 2021
Indigo Paints 1,000 January 20-22, 2021
RailTel 700 January 2021
Kalyan Jewellers 1,750 January to March, 2021
Bajaj Energy 5,450 2021
Studds Accessories 450 February 2021
Suryoday Small Finance Bank 400 2021
Laxmi Organic Industries 800
Craftsman Automation 150 +
Barbecue Nation 1,000-1,200 2021
Apeejay Surrendra Park Hotels 1,000 2021
Home First Finance Company 1,500 2021
Shyam Steel 500 2021
Annai Infra Developers 200-250 2021
*Both, the issue size and date, is tentative and might vary once the issue goes live in the markets.

Indian Railway Finance Corporation (IRFC)

The IPO of the company is open for subscription between January 18 and 20. The issue size is 178.2 crore shares worth Rs 4,633.38 crores. The issue size comprises a fresh issue of 118.8 crore shares and the rest is an offer for sale. The price band is Rs 25 to 26 and the market lot is 575 shares.

IRFC primarily is in the business of financing asset creation or acquisition for the Indian Railways or any other business/entity under the Ministry of Railways. In its words, it is the “dedicated financing arm” for the Railways ministry. The company was set up in the last 1980s.

Read more on Groww: IRFC IPO – Indian Railway Finance Corporation IPO

Indigo Paints

The IPO is open for subscription between January 20 and 22. The issue size is Rs 1,176 crores of which the fresh issue may be worth Rs 300 crores whereas the rest will be an offer for sale. The company may use the proceeds from the IPO to expand existing manufacturing facilities.

Backed by Sequoia Capital, Indigo Paints began its operations in 2000. It manufacturers paint across different segments.

Read more on Groww: Indigo Paints IPO

LIC

Life Insurance Corporation of India’s (LIC) IPO is going to be India’s largest-ever public issue in India. The divestment in LIC was announced by the Finance Minister, Nirmala Sitharaman in the 2020 Union Budget. 

Although the issue size of the IPO has not been officially declared by the government, it is being expected around Rs 70,000-80,000 crores.

The government had a divestment target of Rs 2.1 lakh crore, of which Rs 90,000 crores was to come from LIC’s listing and IDBI’s stake sale.

The Department of Investment and Public Asset Management (Dipam) has recently selected Milliman Advisors LLP India for finding out the value of LIC ahead of IPO.

Nykaa

In a first by an online beauty market place, Nykaa is looking at a stock exchange listing by the end of 2021 or early 2022 at a valuation of $3 billion. Recently Nykaa raised an undisclosed amount which valued the company at $1.8 billion approximately.

Falguni Nayar, the founder of Nykaa, had said in 2018 that the company may be looking to raise money from the public by 2020 or so.

RailTel Ltd.

RailTel is planning to launch its IPO sometime this year with 8.66 crore shares on offer. The IPO size is worth almost Rs 700 crores and most probably is a complete offer for sale.

The company was incorporated in 200 and it provides telecom network and infrastructure services.

The company is a Central Public Sector Enterprise  (CPSE) and a Mini Ratna company. RailTel was also instrumental in the implementation of some of the Government of India projects, for example National Knowledge Network, Bharat Net (formerly, the National Optical Fiber Network) and USOF funded optical fiber based connectivity project in North East India.

Kalyan Jewellers

Kalyan Jewellers, a jewellery brand based out of Kerala, is planning to raise around Rs 1,750 crores through its IPO.  It was earlier expected to launch its IPO in December 2020.

The IPO may consist of a fresh issue of Rs 1,000 crores and the rest would be an offer for sale.

The retail jeweller was founded in 1993. As on June 30, 2020, Kalyan Jewellers had 137 showrooms spread across India and Gulf Cooperation Council (GCC).

Bajaj Energy

The IPO size of the company is expected to be around Rs 5,450 crores, of which Rs 5,150 crores will be a fresh issue. The company has said that it is looking to acquire Lalitpur Power’s 1,980 MW from the proceeds of the IPO. Any amount left will be used for general expenses.

The company is one of the largest private thermal generation companies and has a total gross installed capacity of 2,430 MW.

Studds Accessories

The company is a manufacturer of helmets, motorcycle accessories and riding gears. Studds had begun its operations in 1973. 

The company’s managing director had said in an interview in August 2020 that the company has an approximate market share of around 30%, which it aims to scale to 40% in the next three years.

Suryoday Small Finance Bank

Suryoday Small Finance Bank is planning to launch an IPO of 2 crore equity shares which comprises a fresh issue of 1.6 crore shares and the rest is offer-for-sale. The approximate IPO size is Rs 400 crores. 

The bank has branches in Maharashtra, Gujarat, Madhya Pradesh, Tamil Nadu, Delhi, Karnataka and few other states and union territories.

Laxmi Organic Industries

The IPO size is worth Rs 800 crores approximately, of which the fresh issue is worth Rs 500 crores and the rest is offer-for-sale.

Laxmi Organic is a specialty chemicals company. It’s peers Rossari Biotech and Chemcon Specialty were subscribed 80 and 149 times respectively and listed in 2020.

Craftsman Automation

The IPO will have a fresh issue of Rs 150 crores and an offer for sale of 45.21 lakh shares. The IPO proceeds may be used for clearing some of the debt and general corporate purposes.

The company manufactures auto components.

Barbecue Nation Hospitality

Barbecue Nation, which operates a chain of restaurants across many cities, is planning to raise Rs 1,000-1,200 crores through its IPO issue.

Of the total issue size, around Rs 275 crores will be a fresh issue. The IPO proceeds may be used for outstanding borrowings and corporate purposes.

The company operates more than 130 outlets in India.

Apeejay Surrendra Park Hotels

The hotel chain may raise up to Rs 1,000 crores in its IPO. The IPO may comprise a fresh issue of up to Rs 400 crores and an offer-for-sale (OFS) of up to Rs 600 crores.

Park Hotels have a presence in most metro cities.

Home First Finance Company

Home First will be raising around Rs 1,500 crores through an IPO, of which, Rs 400 crores will be a fresh issue and the rest will be an offer for sale.

The proceeds may be used to enhance capital base and growth opportunities.

The company is a mortgage financier.

Shyam Steel

The IPO size will be around Rs 500 crores, which will be a combination of an offer for sale and fresh issue. 

The company is based out of Kolkata and plans to see the proceeds to repay borrowings and general corporate purposes. 

Shyam Steel operates all its steel manufacturing plants in West Bengal itself.

Annai Infra Developers

The IPO size is expected to be around Rs 200-250 crores.

The company is an engineering, procurement and construction firm in the water management and irrigation segment specifically.

SAMHI Hotels

The IPO size is around Rs 1,800-2000 crores.  This comprises a fresh issue of Rs 1,100 crores. The company may be using the proceeds to pay off the indebtedness and for general corporate purposes. It is currently operating 27 hotels across 12 cities in India, including the metro cities. SAMHI is a hotel owner and asset manager with an institutional ownership model.

a few prominent hotels it is managing are Courtyard by Marriot in Bengaluru, few branches of Fairfield by Marriot in Bengaluru, Four Points by Sheraton Visakhapatnam among others.

Final Words

The list mentioned above of prospective IPOs is subject to periodic revision as the information is not updated on the exchanges yet. Generally, when companies file their IPO application with Sebi, they have to submit their draft red herring prospectus (DRHP). Most of the above-mentioned companies have already done that or are in the process doing so.  According to an estimate, 30 companies are expected to go public this year.

However, before investing in an IPO, read the pros and cons, risks and rewards, about the company and know if investing in that company is in line with your goals.

Happy Investing!

Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.

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