From Swiggy to Ola Electric, Brands Plan to Raise Rs 1 Lakh Crore via IPO in 2024
From Swiggy to Ola Electric, Brands Plan to Raise Rs 1 Lakh Crore via IPO in 2024

Indian companies are optimistic about a positive market growth in 2024, aiming to raise over Rs 1 lakh crore through Initial Public Offerings (IPOs), which is double the previous year's Rs 2000 crore. There are several large-sized IPOs in the pipeline.

According to primedatabase.com, more than 27 companies plan to raise over Rs 30,000 crore and have received approval for IPOs from the Securities and Exchange Board of India (SEBI). Additionally, 36 companies have submitted Draft Red Herring Prospectuses (DRHPs) to the market regulator, outlining their plans to raise more than Rs 50,000 crore.

Raising the Bar

In 2023, the average IPO size was Rs 850 crore, compared to Rs 1,500 crore in 2022 and Rs 1900 crore in 2021. In the previous year, 57 companies raised Rs 49,434 crore through IPOs, while the record was set in 2021 with 63 companies raising Rs 1.19 lakh crore. In 2022, India Inc raised Rs 59,301 crore through 40 public issues.

Ola Electric, led by Bhavish Aggarwal, plans to raise Rs 5,500 crore in an IPO. According to draft papers, Rs 8,300-crore ($1 billion) offer will consist of Rs 5,500 crore raised through a fresh issue and an offer-for-sale (OFS) component of 95.2 million shares. This marks the first IPO by a two-wheeler maker in India since Bajaj Auto's stock market debut in 2008.

Meanwhile, SoftBank-backed food delivery giant Swiggy has recently selected bankers for its $1 billion public issue.

Keeping a Close Watch

With funding winter being expected to also subside in 2024, other big IPOs expected to launch in 2024 are ITC Hotels, Tata Play, Hero Fincorp, and Mobikwik. Other prominent IPO to watch out for would be PhonePe, a major payment aggregator in India, is planning to launch its IPO in 2024-2025 to raise $2 billion in funding, following a recent investment of $200 million by Walmart.

Another digital payments major PayU, is expected to raise about Rs 5,000 crore this year, while National Securities Depository Ltd (NSDL). Recently, Brainbees Solutions, parent company of FirstCry filed its DRHP with SEBI and according to the documents submitted to SEBI, the startup's IPO will include a fresh issuance of shares valued at Rs 1,816 crore and an OFS component of up to 5.43 crore shares.

Hospitality unicorn Oravel Stays, the parent of Oyo, is reportedly seeking to raise nearly $1 billion after a delay of more than a year.

Healthvista India, which is the parent company of Portea Medical, received final observation from Sebi in April last year. This company could be looking at a fresh issue worth Rs 200 crore and an offer for sale (OFS) of up to 56,252,654 shares worth Rs 800 crore.

Rashi Peripherals, Survival Technologies, Shiva Pharmachem, Western Carriers(India) and Indegene are a few companies that received SEBI’s nod last year and could come up with IPOs this calendar.

 
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