After witnessing mega IPOs such as LIC, Zomato, Nykaa and Paytm in recent years, India’s stock market investors seem set to be treated with many big IPOs in the coming months.
10 Big IPOs Launching In The Coming Months
1. ITC Hotels
In August this year, reports came out about ITC planning a big move after announcing the demerger of its hotel business. ITC is planning to make ITC Hotels public by listing them through IPO, people familiar with the developments had said last month.
ITC’s hotels include ITC Maurya (New Delhi), ITC Narmada (Ahmedabad), and ITC Grand Bharat Retreat (Gurugram) among many others. As per a Mint report, the board of ITC has approved a proposal to separately list the hotel business on the stock exchanges within 15 months (i.e. in 2024).
2. Tata Technologies
Tata Motors’ arm, Tata Technologies, had filed the draft prospectus with market regulator SEBI on March 10th to initiate an IPO and raise funds. It had received regulatory approval in June. The IPO consists of a pure offer for sale (OFS) of up to 95.71 million shares, with Tata Motors offering up to 81.13 million shares, Alpha TC Holdings Pte offering up to 9.72 million shares, and Tata Capital Growth Fund I offering up to 4.86 million shares.
Currently, Tata Motors holds a 74.69 percent stake in the company, while Alpha TC Holdings and Tata Capital Growth Fund I hold 7.26 percent and 3.63 percent stakes, respectively.
After 19 years, this is likely to be the first Tata Group company to go public in India since Tata Consultancy Services in 2004. As per the Mint report, Tata Technologies IPO may be launched as soon as this month.
3. Oyo Rooms
After facing lots of obstacles that have delayed its IPO for many months, OYO finally refiled its Draft Red Herring Prospectus (DRHP) with SEBI in March this year, using the new pre-filing route. The issue size for the company’s public listing was reduced by almost half to between $400-$600 billion, all of which will be raised through a primary issuance, as per HBL. Sources close to the company told PTI that OYO may launch its IPO around Diwali this year.
Unlike the traditional route where companies have to launch the IPO within 12 months from the Sebi approval, or final observation; in the pre-filing route, an IPO can be floated within 18 months from the date of Sebi’s final comments.
Explaining the rationale for filing through the pre-filing route, a source said, “The market continues to be highly volatile globally and to an extent in India as well. Filing through the pre-filing route will give OYO some leeway on the timing of the listing, as well as on fine-tuning the issue size, basis the market conditions, to between $400 to 600 million, all of which will now be a primary issuance, to repay most of its debt. Though for now, an issue timing of around Diwali is likely once Sebi approves.”
4. Ola Electric
Last week, a Reuters report mentioned Ola Electric is planning to file regulatory papers for its up to $700 million IPO before the end of October. Backed by investors including Singapore’s Temasek and Japan’s SoftBank (9984.T), Ola Electric was valued at $5.4 billion in a recent fundraising. Ola Electric’s IPO in early 2024 could be India’s biggest auto sector IPO.
In an email to its bankers and lawyers last week, an Ola Electric executive asked external advisers on the IPO – including the investment banking units of India’s Kotak and ICICI, as well as foreign banks including Bank of America and Goldman Sachs – to give “utmost priority” to meet a five-week deadline, said the sources. Ola Electric is targeting IPO roadshows for early January or February, said one of the sources.
Another big IPO lining up is Zomato’s rival Swiggy. The Softbank-backed food delivery company is eyeing a 2024 stock market listing and has initiated talks with bankers to assess its valuation, after halting the process for months due to weak markets, as per Reuters. The three sources said Swiggy is aiming to list between July and September 2024.
Swiggy, which delivers food from restaurants and also groceries, was valued at $10.7 billion in its last fundraising in 2022 but like many Indian startups put its IPO plans on hold amid a funding crunch and investor concerns about stretched valuations. But as global and Indian markets have rebounded, Swiggy last month restarted its IPO planning by inviting eight investment banks to make pitches in early September to work on the IPO, including Morgan Stanley, JP Morgan and Bank of America.
On the other hand, Swiggy’s rival Zomato’s shares are still more than 20% down since getting listed through IPO in July 2021.
6. Byju’s Aakash
Crisis-hit Edtech major BYJU’S is planning to launch the IPO of its test preparatory arm Aakash Education Services Limited by the middle of next year, the company had mentioned in June this year. Aakash Education Services Limited (AESL) revenue is on track to reach Rs 4,000 crore with an EBITDA (operational profit) of Rs 900 crore in the fiscal year 2023-24, the company said in a statement. BYJU’S acquired Aakash for about $950 million, or about Rs 7,100 crore, in April 2021. The board of BYJU’S has granted its official sanction for the IPO.
7. Tata Play
Another IPO from the Tata group that is expected to roll out by next year, is that of Tata Play (formerly Tata Sky). It has already received a green light from SEBI to proceed with the IPO. However, the timeline and details of the IPO still remain uncertain as a Bloomberg report published in July this year mentioned that Tata Group is considering an offer to buy back a stake in its entertainment content distribution platform Tata Play from Temasek Holdings, as Tata Group weighs postponing Tata Play IPO. Tata Group is contemplating whether to delay the planned Tata Play listing because of market conditions, the people said. But if discussions between Tata Group and Temasek still fall apart, Tata Play could opt for a listing soon.
In March this year, Gurugram-based payment service provider MobiKwik mentioned that it plans to file for IPO in the next 12-18 months, as per Upasana Taku, chairperson, co-founder and COO of the company. As per a Money Control report, MobiKwik’s IPO plans had earlier lapsed in November 2022. MobiKwik had got SEBI approval for its Rs 1,900-crore IPO, which comprised a fresh issue of Rs 1,500 crore and an Offer-for-Sale (OFS) of Rs 400 crore. However, Paytm’s disastrous IPO, which the company took part in with a valuation of $20 billion, deterred MobiKwik.
“We are ready again to file an IPO in the next 12-18 months. We planned to file it in March 2023 but due to several reasons couldn’t be able to do so. But this time we have decided to go a little small. And it has been seen that in the last one [sic] year, hardly any tech company get [sic] approval for its IPO from SEBI,” said Taku.
9. Tata Sons
Tata Sons, the parent company of the Tata Group, is likely to get listed soon, which could make it India’s biggest one yet. This development came earlier this month after Tata Sons was classified as an ‘upper-layer’ NBFC (Non-Banking Financial Company) by RBI. That is why Tata Sons needs to gear up for its share listing on or before September 2025. This means the IPO may be rolled out in 2024 or at max get stretched till 2025.
In August this year, Gurgaon-based direct-to-consumer brand Mamaearth’s parent company received the go-ahead from SEBI for its IPO. The entity, Honasa Consumer Ltd, filed its draft red herring prospectus with the market regulator in December 2022 for issue of fresh shares worth Rs 400 crore, in addition to an offer-for-sale (OFS) component for 46.82 million shares, as per ET. According to the draft offer document, the OFS will see some stakeholders sell their stakes partially.
These include founders Varun and Ghazal Alagh as well as investors such as Sofina, Fireside Ventures, Evolvence India, Stellaris and angel investors such as Snapdeal founders Kunal Bahl and Rohit Bansal, Rishabh Mariwala of FMCG giant Marico and actor Shilpa Shetty Kundra. The venture capital firm is not selling its shares in the proposed IPO.
As per the offer document, Honasa Consumer reported revenue from operations of Rs 722.73 crore during April-September 2022 with a profit of Rs 3.67 crore. This compares to Rs 943.46 crore in operational revenue for the year ended March 31, 2022, on a net profit of Rs 14.43 crore. The IPO may be expected by next year, although no strict timeline has been put in place or announced yet.