Here’s a look at the top IPOs lined up to hit the market this year
- The government-owned LIC has nominated Edelweiss Financial Services Ltd and Deloitte India as its pre-IPO advisors.
- India’s largest stock-exchange NSE is also likely to come up with its IPO later this year.
- Earlier this month, Barbeque Nation received the market regulator’s approval for its plan to raise ₹1,000-1,200 crore through an initial public offering.
- As per SEBI’s draft offer document, Burger King is planning to raise as much as ₹1,000 crores.
Due to the COVID-19 crisis, markets witnessed weeks of choppy trade and sell-off. Companies were wary of pushing ahead with their IPO plans, and hence we have seen only 3 IPOs so far this year - including SBI Cards and Rossari Biotech. However, they fared better than what the street had expected.
After a cautious few months, the IPO market is gathering steam again. LIC has been the recent one to nominate Edelweiss Financial Services Ltd and Deloitte India as its pre-IPO advisors.
Here’s a list of IPOs coming up this year:
Life Insurance Corporation IPO
During the Budget last fiscal year, the government had proposed to sell a part of its holding in LIC through an IPO, in an attempt to fetch a valuation of around ₹8-10 lakh crore.
The IPO is likely to be held in the second half of this fiscal year. And, is expected to be the largest ever public offer in the history of the domestic capital markets, according to reports.
Burger King
Hit by the market uncertainty and volatility in the COVID-19 induced lockdown period, McDonald’s rival Burger King postponed the launch of its IPO in March.
Burger King is one of the fastest-growing food chains in India. As per SEBI’s draft offer document, the company is planning to raise as much as ₹1,000 crores. This equity will help Burger King plans to double the number of restaurants by 2025. According to the filing, it currently operates 216 in India across 47 cities including Delhi-NCR, Mumbai, Pune, Chennai, Hyderabad, Bengaluru, Chandigarh, Ludhiana, Amritsar, and Kochi.Barbeque Nation IPO
Earlier this month, Barbeque Nation received the market regulator, SEBI’s approval for the plan to raise ₹1,000-1,200 crores through an initial public offering.
The company will use the IPO proceeds to repay an outstanding loan of ₹205 crores, in part or full, and for general corporate purposes.
The company operates Barbeque Nation Restaurants at 138 outlets across India and seven outlets in the UAE, Oman, and Malaysia. It is backed by private equity investor CX Partners and ace investor Rakesh Jhunjhunwala’s investment firm Alchemy Capital. Alchemy Capital bought about 3.5% stake in Barbeque-Nation Hospitality for ₹90 crores last year. It is also promoted by $3 billion Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani.
NSE IPO
NSE IPO
India’s largest stock-exchange NSE is also expected to come up with its IPO later this year. Earlier this year in February, SEBI chief Ajay Tyagi said the markets regulator had received communication from largest stock bourse NSE for its IPO, and it is examining the legal aspects of the same.
Back then, the NSE was hoping to launch the IPO by the third quarter of this calendar year after SEBI’s approval. According to Tyagi, the entire IPO would be an offer-for-sale (OFS), wherein existing shareholders will sell NSE’s shares.
Bajaj Energy IPO
Bajaj Energy is one of India’s largest private-sector thermal generation companies in Uttar Pradesh. The company received approval to raise as much as ₹5,450 crores through IPO.
The IPO comprises fresh issuance of shares aggregating up to ₹5,150 crores and an offer for sale of scrips up to ₹300 crores by Bajaj Power Ventures, according to the SEBI’s draft offer documents.
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