From LIC & Oyo To Byju's: Top IPOs You Should Look Forward To In 2022

Over ?1 lakh crore. That's the massive amount of total funding garnered through 2021's IPOs in India. As per Ernst & Young (EY) Global IPO report released in December 2021, the year-on-year IPO activity in India increased a whopping 156% in numbers, going from 43 in 2020 to 110 deals in 2021.

Moreover, the funding proceeds from the IPO deals in 2021 were close to $16.94 billion, up 314% from the funding of $4.09 billion in 2020.

Looking back at 2021, we have witnessed big names like Paytm, Zomato, Nykaa, Policybazaar etc already wrapping up their IPOs. But the story is far from over!

With the new year 2022 already rung in, the IPO fever is set to continue, with a strong pipeline of IPOs lined up this year. Eager to know the names? Read on as we bring to you some of the most anticipated and upcoming IPOs to look forward to in 2022.

1. LIC (Life Insurance Corporation of India)

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Amongst the most anticipated IPOs of 2022 is that of India¡¯s largest insurer LIC (Life Insurance Corporation) of India. LIC¡¯s IPO is slated to hit the market in the present quarter of January-March 2022.

Through its stake sale in LIC, the government aims to fulfil its disinvestment target of Rs 1.75-lakh crore in the current fiscal year of 2021-22. The government plans to divest 5%-10% equity in LIC, which is likely to fetch them around ?80,000 crore to ?1 lakh crore through the share sale. Certainly, this IPO would be amongst the biggest and most keenly looked forward to by prospective investors, primarily because of its huge size as well as the solid history of LIC as India¡¯s largest insurer.

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2. OYO

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After almost 9 years since being founded in 2013, Oyo, a hospitality sector major, is set to go public this year. It¡¯s eying an IPO of over ?8,000 crore through share sales this year. The IPO is expected to consist of fresh issuance of up to ? 7,000 cr and an offer for sale aggregating up to close to Rs 1,430 cr.

When we look back at OYO's journey, from initially consisting of budget hotels in India to gradually expanding to vacation homes and millions of rooms across more than 80 nations, it¡¯s been a long way to reach where it is today. The company is aiming for a valuation of around $10 billion-$12 billion through the IPO.

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3. Ola Cabs

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More than a decade after launching in 2010, ride-hailing aggregator Ola plans to go public in the first half of this year 2022. The IPO is likely to have an issue size of close to ?15,000 crore. Through the expected sale of shares, Ola¡¯s investors such as SoftBank, Tiger Global, and Steadview Capital are expected to exit or partially sell their stake in the company to return funds to their shareholders.

Just about a month ago in December 2021, Ola raised $139 million as part of its Series J funding round involving a clutch of investors like IIFL, Edelweiss, and Sunil Munjal-led Hero Enterprise. This latest funding has resulted in Ola¡¯s valuation rising to $7.3 billion.

Earlier in the past year 2021, Ola¡¯s subsidiary Ola Electric had raised more than $200 mn from some of the investors, and Ola had taken another step to boost its geospatial services and capabilities by acquiring geo-analytics technology platform GeoSpoc.

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4. Delhivery

Another company standing in the strong pipeline of IPOs in 2022, is the new-age delivery and logistics services provider Delhivery. After a decade of being founded in 2011, Delhivery now reportedly plans to raise ?7,460 crore through an IPO this year. It had filed its draft prospectus with SEBI in early November 2021.

Delhivery expects to raise ?5,000 crore through issuance of fresh shares, while it would also have an offer for sale (OFS) component of ?2,460 crore, wherein some of its existing investors will dilute their holdings, as per the company¡¯s draft red herring prospectus.

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5. PharmEasy

In November 2021, PharmEasy, a digital healthcare platform, had filed the DRHP with the SEBI, and is expected to roll the IPO out and go public this year. PharmEasy, which provides a wide range of health services ranging from teleconsultation to radiology tests to home delivery of medical products and devices, plans to raise up to ? 6,250 crore through a fresh issue of shares in IPO.

As per the company¡¯s DRHP, PharmEasy intends to use the IPO proceeds to invest in 3 core areas, including marketing and promotional activities, supply chain infrastructure and fulfilment, and upgrading its tech infrastructure.

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6. Byju's

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After starting its operations more than a decade ago in 2011, edtech platform Byju¡¯s is planning to roll out its IPO this year. It plans to raise around ?4billion from the IPO. It is reportedly also in talks to go public through the SPAC deal, and eyes a valuation of close to ?48 billion.

Discussions with Churchill Capital's special-purpose acquisition company (SPAC) about the deal, which could happen around mid-2022, are in the advanced stages, with Byju¡¯s considering a dual listing in India and US. In case the deal does not go through, the company is expected to seek a listing in India in 2022.

For the uninitiated, Byju¡¯s offers world-class personalized and effective learning experiences and programs to school students as well as aspirants of competitive exams like JEE, IAS etc.

7. SBI Mutual Fund

Through the IPO route, India¡¯s largest public-sector lender State Bank of India (SBI) is planning to offload a 6% stake in SBI Mutual Fund, which is a joint venture between SBI and France's Amundi Asset management. Paris-based Amundi is also expected to offload around 4% of its stake in SBI Funds Management via IPO.

SBI¡¯s plan to list the mutual fund arm is seen as a part of its strategy to extract more value from its units after divesting some of its stakes in its life insurance and cards businesses in 2020.

SBI Funds Management's (SBI Mutual Fund) IPO is likely to hit the market in the first quarter of the next financial year 2022-23, as per people close to the development. The IPO size could be around ? 7,000-7,500 crore, which is expected to value the mutual fund between ?70,000- ?75,000 crore.

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