After a record-breaking fundraising in 2021, more companies are ready to launch their initial public offerings (IPOs) in 2022. The biggest of them is expected to be that of Life Insurance Corporation (LIC).
According to Livemint, as many as 35 companies have secured market regulator Sebi’s approval for launching IPOs next year. These companies together plan to raise ₹60,000 crore. The request from another 33 firms, planning to further raise ₹60,000 crore, is pending before Sebi, Livemint reported further.
Some of the firms that are set to launch their IPOs in 2022 are Delhivery, Droom, MobiKwik, Oyo, Pharmeasy, Ixigo, BYJU'S, Foxconn’s India and Fab India. They have filed draft red herring prospectus (DRHP) with Sebi, according to Livemint.
The LIC IPO, meanwhile, will emerge as the biggest in the market with launched. The Union Cabinet had in July, 2021 cleared disinvestment of the country's largest insurer and a panel headed by the finance minister was authorised to decide on the quantum of stake dilution.
The authorised share capital of LIC shall be ₹25,000 crore divided into 2,500 crore shares of ₹10 each, as per the amended legislation. Up to 10 per cent of the LIC IPO issue size would be reserved for policyholders.
{{/usCountry}}The authorised share capital of LIC shall be ₹25,000 crore divided into 2,500 crore shares of ₹10 each, as per the amended legislation. Up to 10 per cent of the LIC IPO issue size would be reserved for policyholders.
{{/usCountry}}Once listed, LIC is likely to become one of the biggest domestic companies by market capitalisation with an estimated valuation of ₹8-10 lakh crore.
The listing of LIC will be crucial for the government to meet its disinvestment target. The government aims to mop up ₹1.75 lakh crore in the current fiscal from minority stake sale and privatisation.
Meanwhile, LIC has sought Expression of Interest from bidders to provide consultancy services for its digital transformation.
The last date for submission of bids is January 17, 2022.
The year 2021 turned out to be the best IPO year in two decades for the Indian market. Excessive liquidity and increased retail investor participation ensured a persistent euphoria in the IPO space wherein companies mopped up more than ₹1.2 lakh crore this year. This year, as many as 63 companies floated their IPOs.