Upcoming IPOs in 2021 in India: Indian businesses raised more than Rs 30,000 crore from the investors in the final calendar year 2020, even as COVID-19 pandemic hit the industry sentiment. In the new year 2021, practically two dozen businesses are lined up to hit the capital markets with initial public provides like Home First Finance Company, Railtel, Indigo Paints, Indian Railway Finance Corporation, Life Insurance Corporation (LIC), Kalyan Jewellers and Barbeque Nation, amongst other people. Analysts anticipate that the 2020 bull run of IPO may possibly continue in 2021.
Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told TheSpuzz Online that the domestic markets are in a powerful bullish trend and the effect of FOMO is working effectively for the main markets. The industry witnessed a stronger listing achieve in the final six months, the typical typical listing gains remained effectively 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 by way of IPO. According to the draft red herring prospectus (DRHP), IPO comprises fresh problem of shares aggregating to Rs 300 crore and provide-for-sale of up to 58.40 lakh equity shares by private equity firm Sequoia Capital, by way of 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, CapitalBy means of Global Research Limited-Investment Advisor, told TheSpuzz Online that 2021 appears to be really positive for the initial public provide. Biswas expects quite a few prominent businesses from Lifestyle, Education, Food and Storage, and a couple of from the Infrastructure sector to hit the IPO industry in 2021. The things that will play an essential function for IPOs in the calendar year 2021 consist of the progress on financial reforms and the central bank’s intention to preserve liquidity taps open. He also mentioned that investors are eying towards the most anticipated IPO from insurance coverage big LIC the identical valuation is anticipated 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 industry
Primary markets witnessed a spectacular rush in the second half of the 2020 and according to the analysts, the year 2021 is anticipated to be even more whopping. Abhay Doshi, Founder- UnlistedArena.com dealing in Pre-IPO & Unlisted Shares, told TheSpuzz Online, in grey industry and unlisted industry the trend appears to be extremely bullish. “We may see further activity in the grey market as and when IPOs get confirmed,” he mentioned. Hence, the trend is powerful but with significantly less activity. He expects that monetary behemoth LIC’s listing may possibly 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 getting witnessed globally will also be noticed in India quickly 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 mentioned.
16 businesses raised more than Rs 31,000 cr in 2020
Besides, Suryoday Small Finance Bank, ESAF Small Finance Bank, StoveKraft, MTAR Tech, Craftsman Automation, Brookfield REIT, and so on are the couple of essential IPOs anticipated to get listed. According to Axis Securities note, the year 2021 is most likely to see a total of 22 IPOs. Last year, out of 16 IPOs, 5 businesses Burger King India, Happiest Minds Technologies, Mrs Bectors Food Specialities, Route Mobile and Rossari Biotech had been amongst leading listing day gainers. These 16 businesses raised Rs 31,109.2 crore through an initial public provide in the calendar year 2020.