An IPO, an abbreviation for Initial Public Offering, is how establishments try to accumulate funds and resources from the market after going public. An establishment gets listed after acquiring proper permissions from the market regulators, SEBI in India, and authoritative bodies.
Is IPO Good or Bad?
Like any passive income source, investing in an IPO consists of its own positive and negative points. That also depends upon the motive behind the investment and the patience of an individual.
Several factors determine the future of the investment. While investing in an IPO, one should consider the following two points-
✔ Ignoring the buzz: It is one of the most critical steps that one should consider before investing, especially in the current scenario. To reduce the probability of losing the hard-earned money, one should not get carried away by the companies’ PR stunts before the listing of their IPO. Several establishments create an intentional and false buzz in the news before their listing to captivate the attention of people.
Thereby increasing the odds of investments.
✔ Proper research & recommendations from experts: To ensure that your investment does not turn into a nightmare, a thorough analysis of the concerned company should get done.
It is so because such an exercise helps figure out the modus operandi of a company for going public.
Also, suggestions and advice before investing in an IPO should be taken from the finance domain experts. It reduces the risk factors and clears all the confusion.
In the year 2020 alone, despite the coronavirus pandemic and predictions of the market becoming bearish, a total of 15 IPOs managed to get listed after SEBI’s approval.
Burger King India and Happiest Mind Technologies were the highest discussed among the top 15, listed in 2020.
We are not even entirely in the first quarter of 2021, and already ten IPOs got listed after getting the market regulator’s due approval.
In this section of the blog, we would tell you about the top four upcoming IPOs and their details in a nutshell. That would lessen your workload of research.
1. Life Insurance Company (LIC)
Started in 1956 by the Government of India, The LIC IPO is set to get listed. LIC is an insurance firm that the Indian government started to provide hassle-free insurance policies to the county’s people.
And since its inception, LIC has grown leaps and bounds in the Indian Insurance Industry.
With its policies like JEEVAN ANAND, JEEVAN AMAR & JEEVAN TARUN, the insurance company has managed to stronghold the trust of every Indian.
India’s finance minister confirmed the launching of the Initial Public Offering of LIC in the financial year 2021-22.
According to the public domain information, a 10 % reservation would be done for the policyholders in the issue size of seventy to eighty thousand crores.
Deepinder Goyal founded the current food delivery giant of India, Zomato, in the year 2008 with a blurry vision of his venture’s future.
Zomato, currently valued at USD 5.4 billion, is set to launch its IPO in the upcoming two or three months.
The Indian online food delivery industry has grown exponentially in the last four years because of several factors.
And Zomato occupying around 50% share in the industry, sits at the top in the Indian food delivery industry.
That is predicted to grow at an even more rapid pace, owing to the pandemic and WFH culture.
Zomato aims to accumulate USD 650 million through its Initial Public Offering in the latter half of the current financial year.
Also, the support of experienced investors like Info Edge would surely help Zomato to tackle any adversaries.
Falguni Nayar’s brainchild Nykka, one of the biggest retailers of beauty products in the country, aims to get its IPO listed in the winters of 2021. Founded in 2012, the beauty and wellness products start-up managed to get valued at USD 1.2 billion in 2020 March.
Since its establishment, Nykaa has continuously narrowed the gap between quality products and small towns. Its warehouses and logistics spread across various districts, it manages to attract more than a million orders every month.
In search of new investors, Nykaa is set to launch the Initial Public Offering as soon as the valuation reaches USD 3 billion.
And with that, it would become the first beauty brand in India to get listed, despite its strong counterparts like Lakme.
Grofers, an online platform known for delivering groceries in the country, has preponed the plan of launching its Initial Public Offer in 2022.
Owing to the pandemic, followed by the lockdown, the company’s sales saw an increment of 80% in 2020.
Grofers, along with its counterparts like Big Basket, has seen massive growth over the last two years because of rapid internet usage.
And similar to Zomato, the pandemic increased the dependency of consumers on such platforms.
That ultimately led to enormous profits and hyper sales, especially during the lockdown.
Through its Initial Public Offer, the company’s CEO & Co-founder, Albinder Dhindsa, looks forward to enhancing logistics and e-commerce brand value.