- Date : 09/12/2021
- Read: 4 mins
LIC, Ola, HDB Financial Services, PharmEasy, and Byju’s are the top 5 IPOs to keep an eye on in 2022.
Did you know that the top 5 IPOs of 2021 have given returns in excess of 200%? They are Paras Defence And Space Technologies Ltd (320%), Nureca Ltd (269%), MTAR Technologies Ltd (253%), Latent View Analytics Ltd (225%), and Laxmi Organic Industries Ltd (205%). These figures are as of 30 November 2021.
The forthcoming year seems to have a lot more IPOs in store if the stock market continues to remain buoyant. In this article, we will discuss the top 5 IPOs to look for in 2022. Read on to find out which ones they are:
1. Life Insurance Corporation (LIC) of India
LIC is India’s biggest life insurance company by a big margin. In Budget 2021, the Finance Minister announced that LIC would come out with its IPO in the same financial year. The IPO is expected to be launched in the January-March 2022 quarter. According to industry reports, the Government is expected to raise Rs 70,000-80,000 crore from the LIC IPO. On listing, LIC is expected to have the highest market capitalisation, ahead of current leader Reliance Industries.
Related: Top 5 IPOs That Have Given The Highest Returns
2. Ola
Ola and Uber are India’s largest ride-hailing aggregators. In 2022, Ola is expected to carry forward the new age companies’ IPO trend started by Zomato, Nykaa, Policybazaar, Paytm and the like in 2021. While Nykaa gave bumper returns on its IPO listing, Paytm managed to pull off India’s largest IPO to date.
As per an Economic Times report, Ola is expected to raise $1.5-2 billion from its IPO at a valuation of $12-14 billion. It recently established one of the world's largest electric two-wheeler factories in Tamil Nadu. Along with expanding its ride-hailing aggregator business in India and international markets, Ola is betting big on the electric two-wheeler segment.
3. HDB Financial Services
HDB Financial Services is a subsidiary of HDFC Bank. It is an NBFC in the lending business. Its IPO objectives include meeting capital expenses, tapping into new lending opportunities, and paying existing debts. As per reports, HDFC Bank is looking to bring in strategic investors and is expecting a valuation of Rs 60,000-65,000 crore for HDB Financial Services. It could be a precursor to an IPO scheduled for 2022.
This is one of the most eagerly awaited IPOs in the financial services sector as it is a part of the HDFC group, which has created tremendous wealth for its shareholders.
Related: What To Keep In Mind When Investing In An IPO?
4. PharmEasy
PharmEasy is one of India’s leading digital healthcare platforms. It is in the business of delivering medicines, performing diagnostic tests, teleconsultation, etc. In November 2021, the company filed a DRHP with SEBI. It is looking to raise Rs 6250 crore through its IPO. The IPO funds will be used for repaying outstanding debt, funding organic growth, pursuing inorganic growth initiatives through acquisitions, and general corporate purposes.
The company is rapidly growing its business through acquisitions such as Medlife, Thyrocare, etc. With the upcoming IPO, the company is expected to continue its aggressive growth strategy.
5. Byju’s
Byju’s is India’s largest online education company. Byju’s was doing well and rapidly expanding its business, but the COVID-induced lockdowns gave a fillip to its business (and therefore, business valuation). During the lockdowns, schools and colleges had to be shut temporarily. During this time, everyone focused on online education, and Byju’s benefited tremendously from this.
As per some reports, the Edtech company already commands a valuation of more than $15 billion and could launch its IPO at an even higher valuation. Due to its market leadership, even at such lofty valuations, the Byju’s IPO is expected to attract many investors.
Related: How To Choose The Right IPO For Investment?
Last words
We have listed just five IPOs to look forward to in 2022. But, the upcoming IPO list is much bigger than this, and investors are eagerly waiting to invest in IPOs. In 2021, companies raised more than Rs 65,000 crore, making it one of the biggest years for IPOs, but 2022 has the potential to better it. With LIC and other big-ticket IPOs waiting in the wings, 2022 looks set to be the biggest year ever for IPOs.
Did you know that the top 5 IPOs of 2021 have given returns in excess of 200%? They are Paras Defence And Space Technologies Ltd (320%), Nureca Ltd (269%), MTAR Technologies Ltd (253%), Latent View Analytics Ltd (225%), and Laxmi Organic Industries Ltd (205%). These figures are as of 30 November 2021.
The forthcoming year seems to have a lot more IPOs in store if the stock market continues to remain buoyant. In this article, we will discuss the top 5 IPOs to look for in 2022. Read on to find out which ones they are:
1. Life Insurance Corporation (LIC) of India
LIC is India’s biggest life insurance company by a big margin. In Budget 2021, the Finance Minister announced that LIC would come out with its IPO in the same financial year. The IPO is expected to be launched in the January-March 2022 quarter. According to industry reports, the Government is expected to raise Rs 70,000-80,000 crore from the LIC IPO. On listing, LIC is expected to have the highest market capitalisation, ahead of current leader Reliance Industries.
Related: Top 5 IPOs That Have Given The Highest Returns
2. Ola
Ola and Uber are India’s largest ride-hailing aggregators. In 2022, Ola is expected to carry forward the new age companies’ IPO trend started by Zomato, Nykaa, Policybazaar, Paytm and the like in 2021. While Nykaa gave bumper returns on its IPO listing, Paytm managed to pull off India’s largest IPO to date.
As per an Economic Times report, Ola is expected to raise $1.5-2 billion from its IPO at a valuation of $12-14 billion. It recently established one of the world's largest electric two-wheeler factories in Tamil Nadu. Along with expanding its ride-hailing aggregator business in India and international markets, Ola is betting big on the electric two-wheeler segment.
3. HDB Financial Services
HDB Financial Services is a subsidiary of HDFC Bank. It is an NBFC in the lending business. Its IPO objectives include meeting capital expenses, tapping into new lending opportunities, and paying existing debts. As per reports, HDFC Bank is looking to bring in strategic investors and is expecting a valuation of Rs 60,000-65,000 crore for HDB Financial Services. It could be a precursor to an IPO scheduled for 2022.
This is one of the most eagerly awaited IPOs in the financial services sector as it is a part of the HDFC group, which has created tremendous wealth for its shareholders.
Related: What To Keep In Mind When Investing In An IPO?
4. PharmEasy
PharmEasy is one of India’s leading digital healthcare platforms. It is in the business of delivering medicines, performing diagnostic tests, teleconsultation, etc. In November 2021, the company filed a DRHP with SEBI. It is looking to raise Rs 6250 crore through its IPO. The IPO funds will be used for repaying outstanding debt, funding organic growth, pursuing inorganic growth initiatives through acquisitions, and general corporate purposes.
The company is rapidly growing its business through acquisitions such as Medlife, Thyrocare, etc. With the upcoming IPO, the company is expected to continue its aggressive growth strategy.
5. Byju’s
Byju’s is India’s largest online education company. Byju’s was doing well and rapidly expanding its business, but the COVID-induced lockdowns gave a fillip to its business (and therefore, business valuation). During the lockdowns, schools and colleges had to be shut temporarily. During this time, everyone focused on online education, and Byju’s benefited tremendously from this.
As per some reports, the Edtech company already commands a valuation of more than $15 billion and could launch its IPO at an even higher valuation. Due to its market leadership, even at such lofty valuations, the Byju’s IPO is expected to attract many investors.
Related: How To Choose The Right IPO For Investment?
Last words
We have listed just five IPOs to look forward to in 2022. But, the upcoming IPO list is much bigger than this, and investors are eagerly waiting to invest in IPOs. In 2021, companies raised more than Rs 65,000 crore, making it one of the biggest years for IPOs, but 2022 has the potential to better it. With LIC and other big-ticket IPOs waiting in the wings, 2022 looks set to be the biggest year ever for IPOs.
