Having seen the tremendous success enjoyed by IPOs such as Burger King and Mrs. Bectors Foods among others in 2020, there are quite a few exciting IPOs to watch out for in 2021. Some of these IPOs can be applied for listing gains and some for a long term holding.
What is an IPO?
Before we take a look at the upcoming IPOs let us understand what an IPO is. An Initial Public Offering (IPO) is the process whereby a private limited company offers shares to the general public for the very first time in the form of shares, thus allowing it to raise capital from the public investors.
IPOs in 2021
There are many hot IPOs in the 2021 pipeline, some of which are well-known brands and some are diamonds in the rough.
- Barbeque Nation – The one who introduced and popularized barbecues in India. Its holding company Barbeque Nation Hospitality has filed the draft papers with SEBI, and there would also be an Offer For Sale (OFS) of up to 98,22,947 shares. Market experts and insiders estimate that the IPO could to the tune of ₹1,000-₹1,200 crores. There are currently 138 outlets across India and another 7 in the UAE, Oman, and Malaysia.
- Zomato – The restaurant aggregator and food delivery pioneer, founded in 2008 has lofty ambitions of going public soon. Zomato is valued at a mammoth $3.6 billion post its latest fundraising round. Zomato’s SEBI filing shows that it is looking to raise around ₹1,047 crores.
- Kalyan Jewellers – The 8,000 employee strong, Thrissur based jewelry chain has filed its draft papers with SEBI for an IPO in the range of ₹1750 crores, and this would consist of an OFS of ₹750 crores and ₹1000 crores of a new issue. The company had clocked a turnover of ₹10,000+ crores in Q1 FY 2021-22.
- Life Insurance Corporation – LIC, the big daddy of all IPOs. The IPO to beat all IPOs. You just run out of words to describe this IPO. LIC the state-run insurance company is expected to have an IPO to the tune of ₹70,000 crores. The stake sale was announced by Finance Minister Nirmala Sitharaman while announcing the 2020-21 budget.
- The Park Hotels – A 5-star luxury boutique hotel chain present in 10 cities in India and a spin-off of Hilton Worldwide, established in 2007 has proposed an IPO to raise ₹1,000 crores. The IPO comprises an OFS of ₹600 crores and a fresh issue of ₹400 crores.
There are many more IPOs such as Bajaj Energy, EaseMyTrip, Nazara Technologies, StoveKraft, Lodha Developers, National Commodity and Derivatives Exchange Ltd (NCDEX), and Home First Finance(HFFC) which are planned for 2021.