India has IPOs worth $5 billion lined up this year— here’s a look at the top candidates
- Indian markets regulator has approved 16 IPOs worth ₹16,000 crore to go public.
- In 2019, Indian companies raised ₹1.25 lakh crore from IPOs in 2019.
- Edelweiss expects the list of IPOs to swell in the coming months due to ample ‘liquidity’ in the market.
Indian markets regulator Securities and Exchange Board of India (SEBI) approved 16 IPOs worth ₹16,000 crore ($2.24 billion). And, yet another 13 companies which want to raise as much as ₹21,200 crore are await approval, says a report by Edelweiss Broking.
These companies might want to replicate the success they saw last year. In 2019, new public issues raised as much as ₹1.25 lakh crore. “We expect the pipeline to grow stronger and larger as the year passes by,” the report stated. As per the report, there is enough money floating in the market hunting for the right opportunities.
Let’s take a look at some of the top IPOs scheduled this year:
SBI Cards and Payment Services
SBI Cards and Payments Services is a subsidiary of the country’s largest bank SBI. It is planning to raise around ₹9,600 crore, according to SEBI document. SBI Cards IPO comprises fresh issuance of equity shares aggregating up to ₹500 crores, according to the SEBI’s draft offer document.
SBI Cards is the second-largest credit card issuer in the country with almost 9.4 million outstanding cards. The parent bank SBI holds 76% stake in SBI Cards and the rest is held by Carlyle Group, a private equity company.
Bajaj Energy is one of the largest private-sector thermal generation companies in Uttar Pradesh. It received approval to raise as much as ₹5,450 crore.
The IPO comprises fresh issuance of shares aggregating up to ₹5,150 crore and an offer for sale of scrips up to ₹300 crore by Bajaj Power Ventures, according to the SEBI’s draft offer documents.
The rival of McDonald’s, Burger King is one of the fastest-growing food chains in India. As per SEBI’s draft offer document, it plans to raise as much as ₹1,000 crores. This equity will help Burger King plans to double the number of restaurants by 2025, where it currently operates 216 in India.
Easy Trip Planners
The Indian online travel company headquartered in Delhi too is floating a ₹150 crore IPO, according to SEBI draft papers. It is also issuing fresh issue aggregating up to ₹400 crore.
Equitas Small Finance Bank
Equitas Small Finance Bank is a Chennai-based microfinance lender. It is looking to raise ₹550 crore as fresh capital, according to the SEBI draft document. The size of the IPO is expected to be at around ₹1,000 crore.