IPOs: Rs 90,000 crore! LIC, Delhivery, API Holdings and other 7 companies may hit market in early FY23
The most anticipated public issue of the Life Insurance Corporation of India is one such company to have hit the roadblock.
The ongoing Russia-Ukraine crisis has set the equity markets back forcing companies to hold the launch of their Initial Public Offerings (IPO). Even as the markets are still trying to recover the losses, sentiments around new IPOs hitting the markets are building up.
The most anticipated public issue of the Life Insurance Corporation of India is one such company to have hit the roadblock.
See Zee Business Live TV Streaming Below:
Besides LIC, the companies which could launch their IPO issues in next Financial Year include Go Airlines, API Holdings (PharmEasy) and Delhivery.
It is estimated that around Rs 90,000 crore will likely be raised from equity markets by at least 10 IPOs that are expected hit the primary market in FY23.
The list of 10 IPOs that are supposed to hit market in the new fiscal.
(With PTI Inputs)
Life Insurance Corporation of India
As per Budget 2021 estimate, the government was supposed to make LIC public in the current financial year, however, due to correction in the market, the date has been postponed, government officials noted.
According to PTI report, “The government's sale of about 31.6 crore shares or 5 per cent stake in LIC, estimated to fetch around Rs 60,000 crore to the exchequer, was originally planned to be launched in March, but the Russia-Ukraine crisis has derailed the plans as stock markets are highly volatile.”
On February 13, the government filed the draft red herring prospectus (DRHP) for the IPO with Securities and Exchange Board of India (SEBI), which granted its approval for the same was received in March, the report said.
Delhivery
The supply chain and logistics company Delhivery, earlier in January had received Sebi’s approval to raise around Rs 7,460 crore through IPO. The company is likely to launch its IPO in the early months of FY23.
The IPO comprises fresh issuance of equity shares worth Rs 5,000 crore and an offer for sale (OFS) component of Rs 2,460 crore by existing shareholders, as per draft red herring prospectus (DRHP).
API Holdings
API Holdings, the parent company of pharmacy platform PharmEasy, had received markets regulator Sebi’s go-ahead to raise funds through initial share sales earlier last month. The company had filed its preliminary papers with the regulator in November 2021.
As per draft papers, API Holdings is looking to raise Rs 6,250 crore through the IPO, which will be primary issuance of equity shares and does not have any Offer For Sale (OFS) component.
Emcure Pharmaceuticals
Emcure Pharmaceuticals in December had received Sebi's go-ahead to raise funds through an initial share-sale. Bain Capital-backed company is mulling to raise around Rs 4000 crore.
The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 1,100 crore and offer of sale (OFS) of 18,168,356 equity shares by promoters and existing shareholders, according to the draft red herring prospectus (DRHP).
Go Airlines
Budget carrier Go Airlines, earlier in August 2021 had received Sebi's go-ahead for an initial public offer worth Rs 3,600 crore. The company has rebranded itself as 'Go First'.
The Wadia-group backed airline plans to garner up to Rs 3,600 crore through sale of shares, according to the Draft Red Herring Prospectus (DRHP). It also plans to raise up to Rs 1,500 crore by way of a pre-IPO (Initial Public Offer) placement.
Five-Star Business Finance
SEBI earlier in January 2022 had given go-ahead for initial public offer to NBFC Five Star Business Finance. Sequoia and KKR-backed company to raise up to Rs 2,752 crore through an initial-share sale, which is an entirely an offer for sale (OFS) as per the draft red herring prospectus (DRHP).
The other four companies that are likely to launch their IPOs in the coming financial year are: Gemini Edibles (IPO Size around Rs 2500 crore), Paradeep Phosphates (IPO Size around Rs 2200 crore); India 1 payments (IPO Size around Rs 2200 crore) and Global Health (IPO Size around Rs 2000 crore).