Although the Indian primary markets made a slow start in 2023 overall, they were successful. There were fewer Upcoming IPOs this year than last, but there were more issues that took an extra step or two onto Dalal Street.
In all, 57 issues hit the capital market this year, more than last year’s 40. But the total amount raised was 17 % less. Moreover, the proportion of fresh capital raised in IPOs this year was at an eight-year high.
These problems enjoyed strong listing gains and saw robust retail participation. Looking forward, the market will continue to be upbeat as some ₹28,440 crore of issues are set for release into public markets.
Exclusive Insights: Upcoming IPOs with High Growth Potential
Based on exchange data, reports, and market speculation about Upcoming IPOs in 2024, here is a list of the most anticipated.
- Ola Electric
Ola Electric, the EV division of India’s first mobility unicorn and avatar to Indian taxi Uber-killer app Taxi Sure (which, as you all know, was set up by Bhavish Aggarwal with ANI Technologies), is one of the most anticipated Upcoming IPOs in 2024.The offering would raise but even with hurdles such as safety doubts and service-quality concerns, Ola Electric has seen its revenue surge.
That signals rapid growth from a cab aggregator into one of India’s biggest EV makers. Concentrating on environmentally friendly transportation solutions makes the company well-placed in an increasingly green market.
- Aakash (Byju’s Subsidiary)
Aakash, which was bought by tech heavyweight Byju’s in 2021 for $950 million, is considering going public via an IPO as early as mid-year 2024.Aakash saw a three-fold increase in revenue after the acquisition. This is projected to reach ₹4,000 crore in revenues and ₹900 crore EBITDA by FY23-24 end. Its test-prep market is expected to boom, making Aakash an IPO hunter’s delight.
But investors will be watching the company’s IPO closely because its parent experienced problems with lenders last year and was forced to lay off workers, while auditors began questioning whether it could even continue operating.
- PhonePe
India’s digital payments leader, PhonePe, is aspiring to IPO in 2024-5. After Walmart invested another US $ 200 million in it at a valuation of US $ 12 billion, PhonePe is currently raising close to US $ 2 billion.Because the company has ventured into several different facets of digital payments and is growing rapidly, its IPO will be eagerly anticipated.
- Oyo Rooms
The travel-booking platform is seeking to raise public money posthaste to pay off most of its debt through an IPO that seems long delayed. So, the firm had to first file an IPO and then refile its draft red herring prospectus (DRHP) with a confidential pre-filing route under the Securities & Exchange Board of India.However, according to press reports, it has been cut nearly in half from around $90 billion down to anywhere between US$ 400-6 million for the public listing,
- PharmEasy
If it keeps up this torrid pace, PharmEasy is said to be mulling a public issue. Lately, the Tata-owned company raised more than ₹3950 crore in a rights issue. As of Q1FY24, PharmEasy is EBITDA-positive, and the trend continues.However, the rights issue still awaits CCI approval before other investors are brought in. Afterwards, Ranjan Pai’s shareholding may be around 15 % of PharmEasy. The proceeds from the rights issue will be used for debt reduction and organic growth.
- PayU India
PayU India is also planning an IPO in the second half of 2024. PayU India, a subsidiary of Prosus, provides financial services, including merchant payments and consumer credit.In the first half of this fiscal year, its India operations accounted for $ 211 million in revenue. The IPO of PayU India, which has seen rapid growth in the payments and credit sectors, will be a landmark event for fintech.
- MobiKwik
According to media reports, MobiKwik is now planning an IPO. It says that it will raise about US $84 million with the help of DAM Capital Advisors and SBI Capital Markets. After previously deferring IPO plans, the company is now targeting 2024.India’s MobiKwik, a leading mobile wallet and buy now/pay later service provider, is just one example of the wider trend of small- to medium-sized companies getting listed.
What to consider when investing in IPOs this year?
To the potential investors of the Upcoming IPO of 2024, it will be necessary to approach Indian IPOs with a strategy. Due diligence is particularly thorough. It begins with a comprehensive examination of the company’s financial condition and future growth prospects; market positioning then follows.
The primary points to be considered in investing in IPOs are as follows.
Thorough Due Diligence:
Analyze the company’s financial status, growth potential, and market position in detail.
Understand the company’s strategic vision by evaluating whether there is a purpose for holding an IPO or how to use the funds.
Industry and Competitive Analysis:
Get a feel for the industry and competitive environment to see if there is potential in an IPO.
Confidence in judgment Should consider the management team’s track record and industry skills.
Market Awareness:
To make investment decisions, keep up with general economic conditions and market trends.
For clues on market sentiment and expectations, see what the grey market premium (GMP) is.
Subscription Metrics Evaluation:
Create a detailed report on the IPO subscription statistics. The report should contain information about the oversubscription rates and the category split to the allotment.
To become a knowledgeable employee, you have to study the company’s brochure, analyze its financial reports, and be aware of the different risks that may arise.
By getting into the nitty-gritty of the IPO scene, you can comprehend the whole picture and make the best decision for the investment strategies.
Investment Strategy:
Before investing in an IPO, you need to define your investment horizon and risk tolerance and set financial goals that align with your investment horizon.
Diversification of investments in various sectors helps to minimize risks. To make a good IPO investment, you have to be proactive by understanding your risk tolerance, investment horizon, and financial goals so that you have a solid and flexible strategy in place.
Stay Informed:
The global economy is very complex and can change quickly, so it’s important to stay informed of any new regulations or shifts in sentiment.
Keep track of the regulatory changes, the market trends, and the global economic conditions. It is important to pay attention to changes in regulations, keep track of the shifting trends in market sentiment, and make necessary adjustments based on the subtle changes that occur in the economy.
Keep an eye on changes in the IPO environment to make better choices
In 2024, mastering the Indian IPO landscape requires fine research, careful planning, and a sharp sense of how markets are trending.
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