IPO Watch: List of Upcoming IPOs in 2021

Upcoming IPOs
IPO
by Nikita Bhoota 09/06/2021

While we do not have a final list of IPOs for the year 2021. However, here are some companies likely to file or have drafted DRHP with SEBI for Initial Public Offer (IPO) to change their company identity from Private Limited to Limited. The company needs to file DRHP (draft red herring prospectus) and then final RHP (red herring prospectus) for IPO. SEBI approves the Initial Public Offer for the companies and then they go for the IPO.

 

Here are the forthcoming IPOs which might hit the primary market in 2021.
 

  1. Shyam Metalics

Company Background:

Shyam Metalics and Energy Limited (SMEL) is India's leading integrated metal producer company. The company is primarily engaged in the production of long steel products such as iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferro alloys. As of February 2021, it is among India's largest producers of ferro alloys in terms of installed capacity and the fourth-largest player in the sponge iron industry.

Shyam Metalics IPO Details:

  • ICICI Securities Limited, Axis Capital Limited, Iifl Securities Limited, JM Financial Limited and SBI Capital Markets Limited are lead managers to the issue.
  • Shyam Metalics and Energy will Issue Equity Shares aggregating up to Rs 909 cr (Fresh Issue of Equity Shares aggregating up to Rs 657 cr and Offer for sale aggregating up to Rs 252 cr).
  • Price band of Shyam Metalics and Energy is Rs 303 – Rs 306 and the Bid Lot Size is of 45 Shares and in multiple thereof.
  • Steel manufacturing company Shyam Metalics and Energy will launch its Rs 909-crore initial public offer (IPO) on June 14.
  1. Sona Comstar

Company Background:

Sona BLW Precision Forgings Limited, one of India’s leading automotive technology companies, is primarily engaged in designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs. The company is a leading supplier to the fast-growing global Electric Vehicle (EV) markets and derived 13.8% revenue from the Battery EV market and 26.7% from the Micro Hybrid / Hybrid market in FY21. Its global market share of BEV differential assemblies in calendar year 2020 was 8.7%. The company is among the top ten players globally in the differential bevel gear market and in the starter motor market on the basis of respective volumes supplied to its end segments in calendar year 2020 and has been gaining global market share across products.

IPO Details:

  • The total Offer size is up to Rs. 5,550 crores with a fresh issuance of equity shares, aggregating up to Rs.300 crores and an offer for sale of equity shares aggregating up to Rs. 5,250 crores, by the Selling Shareholder, namely, Singapore VII Topco III Pte. Ltd.
  • Kotak Mahindra Capital Company Limited, Credit Suisse Securities (India) Private Limited, JM Financial Limited, J.P. Morgan India Private Limited and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers to the Offer.
  • The Company intends to utilize the proceeds from the fresh issue to repay/prepay approximately Rs. 241.12 crores of its identified borrowings, besides general corporate purposes.
  • Price Band of Rs. 285 – Rs. 291 per equity share of face value of Rs. 10. Bid/Offer Opening Date – Monday, June 14, 2021 and Bid/Offer Closing Date – Wednesday, June 16, 2021. Minimum Bid Lot is 51 equity shares and in multiples of 51 equity shares thereafter
  1. Life Insurance Corporation of India (LIC)

     

Company Background:

In India, there are 24 life insurers currently in operation, with LIC commanding the top spot with a market share of 69% in FY20.  The government of India holds a 95% stake, and LIC has assets worth Rs. 34 trillion.  

IPO Details

  • On 1st February 2020, in Union Budget 2020-2021, the country’s finance minister Nirmala Sitharaman has announced the divestment plan of LIC.
  • The IPO is expected in the third quarter of the new financial year.
  • The government of India is likely to dilute not more than 10% of its entire stake in LIC. According to the estimates made by various analysts, the size of the upcoming LIC IPO would range somewhere between Rs. 70,000 crores to Rs. 80,000 crores.
  • According to the government’s estimation, the LIC IPO valuation is pegged at around Rs. 13 lakh crores to Rs. 15 lakh crores. However, most market analysts and experts seem to put the figures somewhere around Rs. 8 lakh crores to Rs. 11.5 lakh crores.
  1. Nykaa:

Company Background:

Nykaa, which was founded in 2012, is India’s top women-centric online marketplace with around 15 million registered users and caters to 1.5 million orders a month. The platform has been able to carve out a niche for itself through excessive focus on the beauty and personal care segment, which differentiates it from horizontal e-commerce companies like Flipkart and Amazon.

IPO Details

  • Nykaa plans to go public later this fiscal at a valuation of $4.5 billion.
  • The size of the public offering is expected to be between $500 million and $700 million.
  • Nykaa has appointed Kotak Mahindra Capital Co. and Morgan Stanley as managers for its initial public offering (IPO).
  1. Fincare Small Finance Bank:

Company Background:

Fincare Small Finance Bank has a suite of banking products such as savings accounts, current accounts, fixed deposits, NRI fixed deposits, recurring deposits, microloans, cash overdraft, loans against gold, loan against property, institutional finance, and two-wheeler loan.

IPO Details

  • Fincare Small Finance Bank has filed draft papers for its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). It plans to raise Rs 1,330 crore from the primary market.
  • The IPO of Bengaluru-based microfinance company comprises a fresh issue of Rs 330 crore by the bank and an offer for sale of Rs 1,000 crore by promoter Fincare Business Services.
  • Book running lead managers to the issue are ICICI Securities, Axis Capital, IIFL Securities, and SBI Capital Markets.
  1. Zomato:

Company Background:

According to RedSeer, Zomato is one of the leading Food Services platforms in India in terms of value of food sold, as of December31, 2020. During Fiscal 2020, 41.5 million average MAU visited our platform in India. As of December 31, 2020, the company is present in 526 cities in India, with 350,174 Active Restaurant Listings. Zomato mobile application is the most downloaded food and drinks application in India in each of the last three years since 2018 on iOS App store and Google Play combined, as perApp Annie’s estimates. While it has footprint across 23 countries outside India as of December 31, 2020.

IPO Details

  • Zomato Limited is planning to raise around ₹8250 crore via IPO. Zomato filed the DRHP with Sebi in April 2021.
  • The lead managers to the issue are Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited,Credit Suisse Securities (India) Private Limited, BofA Securities India Limited, Citigroup Global Markets India Private Limited.
  1. Nuvoco Vistas:

Company Background:

Nuvoco Vistas is the fifth largest cement company in India and the largest cement company in East India in terms of capacity. (Source: CRISIL Report). As of December 31, 2020, the company’s cement production capacity constituted approximately 4.2% of total cement capacity in India, 17% of total cement capacity in East India and 5% of total cement capacity in North India, and we are one of the leading ready-mix concrete manufacturers in India (Source: CRISIL Report).

Nuvoco Vistas Cement Plants are in the states of West Bengal, Bihar, Odisha, Chhattisgarh and Jharkhand in East India andRajasthan and Haryana in North India, while our RMX Plants are located across India. As of December 31, 2020, the Cement Plants have an installed capacity of 22.32 MMTPA.

IPO Details:

  • Book Running Lead Managers to the issue are ICICI Securities, Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited and J.P. Morgan India Private Limited.
  • Nuvoco Vistas is the cement arm of the household brand Nirma Ltd.
  • The issue size of the IPO is around Rs 5,000 crores of which Rs 1,500 crores will be a fresh issue and the rest an offer for sale.
  1. India Pesticides:

Company Background:

India Pesticides is an R&D driven agro-chemical manufacturer of Technicals with a growing Formulations business. It is also among the fastest growing agro-chemical companies in India in terms of volume in Fiscal 2020 (Source: F&S Report). The company is also the sole Indian manufacturer and among top five manufacturers globally for several Technicals, such as, Folpet and Thiocarbamate Herbicide (Source: F&S Report). Since commencing our operations in 1984, it has diversified into manufacturing herbicide and fungicide Technicals and active pharmaceutical ingredients (“APIs”). India Pesticides also manufacture herbicide, insecticide and fungicide Formulations.

IPO Details:

  • Book Running Lead Managers to the issue are Axis Capital Limited and JM Financial Limited.
  • The public offer comprises a total of Rs 800 crores. Of the total issue size, Rs 100 crores will be a fresh issue and Rs 700 crores will be an offer for sale.
  • The net proceeds from the issue will be utilised for working capital requirements.
  1. Bajaj Energy:

Company Background:

Bajaj Energy along with Lalitpur Power Generation Company Limited (LPGCL) is one of the largest private sector thermal generation companies in Uttar Pradesh (Source: CRISIL Research). The total gross installed capacity of 2,430 MW, comprising 450 MW from five operational plants of 90 MW each, owned and managed by BEL (the "BEL Power Plants") and 1,980 MW from the power plant owned and managed by LPGCL (the "LPGCL Power Plant").

IPO Details:

  • The company has said that it is looking to acquire Lalitpur Power’s 1,980 MW from the proceeds of the IPO.
  • The company is one of the largest private thermal generation companies.
  • Book Running Lead Managers to the issue are Edelweiss Financial Services Limited, IIFL, SBI Capital Markets Limited and Co-Book Running Lead Manager is IDBI Capital Markets & Securities Limited.
  • 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.
  1. Aditya Birla Sun Life Asset Management Company

Company Background:

Aditya Birla Sun Life Mutual Fund is one of the largest fund houses in India. Aditya Birla Sun Life Mutual Fund is a joint venture between the Aditya Birla Group and Sun Life Financial, Canada based international financial company.  Aditya Birla MF offers in-house mutual funds across different asset classes.

IPO Details:

  • Aditya Birla Capital will sell up to 2.88 million shares held by it in the asset management business, while Sun Life (India) AMC will sell up to 36.03 million shares. Aditya Birla Capital holds 51% stake in the AMC, and the remaining 49% is held by Sun Life.
  • Kotak Investment Banking, Bofa Securities, Citigroup Global markets India, Axis Capital, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Banking, SBI Capital and Yes Securities are the book running lead managers to the issue.
  • Aditya Birla Capital Ltd and Sun Life (India) AMC will together sell a 13.5% stake in their asset management joint venture - Aditya Birla Sun Life AMC Ltd.
  • The IPO size could be around Rs 2,000 crore
  1. Apeejay Surrendra Park Hotels:

Company Background:

They are one of India’s top 10 hospitality companies in the upscale segment and they have pioneered the concept of luxury boutique hotel in India under “THE PARK” brand, which has since been extended to their upper-midscale brand “Zone by The Park”, according to the Horwath HTL Report.

This Company operates hotels under three brands, namely “THE PARK, “THE PARK Collection” and “Zone by The Park”. They are part of the Apeejay Surrendra group which is a leading Indian conglomerate. The group’s business is spread across industries such as hospitality, shipping, tea, real estate, retail brands such as Oxford bookstores, and education.

IPO Details:

  • 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.
  • Axis Capital Limited, JM Financial Limited and ICICI Securities Limited are lead managers to the issue.
  1. Annai Infra Developers:

Company Background:

Tamil Nadu-based engineering, procurement and construction company Annai Infra Developers is mainly engaged in engineering, procurement and construction (EPC) activities of water management and irrigation projects. Business operations of the company involve: (i) equipment procurement (ii) project management and (iii) construction and commissioning of the projects.

IPO Details:

  • Pantomath Capital Advisors is the book running lead manager.
  • Annai may raise around Rs 200-225 crore through the public issue.
  1. SAMHI Hotels

Company Background:

It is one of India’s leading hotel owner and asset manager. The company have a portfolio of 27 operating hotels comprising of 4,048 keys across India, as of June 30, 2019. SAMHI have a diverse geographic presence as our hotels span 12 of India’s key urban consumption centres, including Delhi, Bengaluru, Hyderabad, Chennai and Pune, which together accounted for 52.6% of India’s air passenger traffic during the Financial Year 2019 (Source: HVS Report). For operating hotels, the company have long-standing relationships with three of the well-established and leading hotel operators, namely, Marriott, IHG and Hyatt.

IPO Details:

  • 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.
  • Kotak Mahindra Capital Company Limited, CLSA India Private Limited, DSP Merrill Lynch Limited and Goldman Sachs (India) Securities Private Limited are the lead managers to the issue.
  1. GoFirst (erstwhile GoAir)

Company Background:

Wadia Group-backed GoAir has been rebranded as 'Go First' as the airline is betting big on its ultra-low-cost business model to tide over the impact of the COVID-19 pandemic. Go Air is the third Indian carrier to be listed on the bourses after SpiceJet and IndiGo. The airline, which was launched in 2005, has a market share of more than 9.5% in India currently. The Go First as ULCC (ultra-low-cost carrier) would operate narrow-body aircraft type across its fleet, which comprises Airbus A320 and A320 Neos (new engine option) planes in operation.

IPO Details:

  • The IPO will be worth Rs 3,600 crores.
  • They aim to repay the debt of around Rs 2,000 crores owned to Indian Oil Corp for jet fuel.
  • The global coordinators and book running lead managers to the issue are ICICI Securities, Citigroup Global Markets India Pvt Ltd, and Morgan Stanley India Company Pvt Ltd.
  1. Devyani International

Company Background:

It is largest franchisee of Yum Brands in India and are among the largest operators of chain quick service restaurants (“QSR”) in India (Source: Global Data Report), on a non-exclusive basis, and operate 655 stores across 155 cities in India, as of March 31, 2021. Yum! Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell brands and has presence globally with more than 50,000 restaurants in over 150 countries, as of December 31, 20201. In addition, the company has a franchisee for the Costa Coffee brand and stores in India. The business is broadly classified into three verticals that includes stores of KFC, Pizza Hut and Costa Coffee operated in India.

IPO Details:

  • They plan to raise Rs 1,400 crores through the IPO, out of which Rs 400 crores will be a fresh issue, 12.5 crore shares will be sold through an offer for sale.
  • The purpose is to repay all borrowings of around Rs 360 crores.
  • The global coordinators and book running lead managers to the issue are Kotak Mahindra Capital Company Limited, CLSA India Private Limited, Edelweiss Financial Services Limited and Motilal Oswal Investment Advisors Limited.
  1. Penna Cements

Company Background:

Hyderabad-based Penna Cement has a strong brand recall in southern and western states of the country. It operates out of four integrated manufacturing facilities and two grinding units across Andhra Pradesh, Telangana and Maharashtra with an aggregate capacity of 10 MMTPA as of March, 2021

IPO Details:

  • The company is planning to raise Rs 1,550 crores through its IPO.
  • The fresh issue is Rs 1,300 crores and Rs 250 crores is through an offer for sale.
  • The company wants to repay borrowings, up-grade raw materials and set up a waste heat recovering plant.
  • The global coordinators and book running lead managers to the issue are Edelweiss Financial Services Limited, Axis Capital Limited, ICICI Securities Limited, JM Financial Limited and YES Securities (India) Limited.
  1. CarTrade Tech

Company Background:

CarTrade.com is an online auto marketplace providing buyers and sellers a structured platform for transacting in new and used vehicles. Since its inception, it has expanded its offerings across India with a network of more than 4,000 dealers. Currently, over 4 million unique consumers visit CarTrade.com every month according to its website.

The firm’s business can be divided into two parts: CarTrade.com, the consumer portal where the users can visit to buy and sell used/new cars and CarTradeExchange, the dealer portal which helps them manage their business operations.

IPO Details:

  • The Warburg-Pincus-backed company expects to raise Rs 2,000 crores through an offer for sale.
  • Axis Capital, Kotak Mahindra Capital, Nomura and Citi are the investment banks works on the CarTrade IPO

Disclaimer: The above report is compiled from information available on the public platforms.

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