Transition from a Private Limited to Limited – Top 5 Indian companies planning to launch an IPO in 2021
When the identity of any company changes from Private Limited to Limited by offering shares to the public in a stock issuance, it is known as Initial Public Offering (IPO). The process of becoming an IPO is done through IPO Draft Prospectus (DRHP) and IPO Red Herring Prospectus (RHP) or IPO Final Prospectus and is later green lit by SEBI. Becoming an IPO allows companies to attract more investment from public investors as well as raise funds easily. They can use this cash to grow the business in the form of infrastructure or research.
Many leading segments like educational technology, e-commerce and financial technology have gained the interests of investors due to a shift in consumer behavior and choices in the wake of Covid-19 pandemic. Here is a list of top five Indian companies who are planning to launch an IPO:
- Aditya Birla Sun Life AMC – It is the fourth largest asset management company in India and a common venture between India’s Aditya Birla Capital and Canada’s Sun Life Financial. It plans to launch its IPO of around Rs 2,768.26 crores to be a part of the advantages of listing on stock exchanges, settling previous debts and meeting corporate expenses.
- Arohan Financial – It is a microfinance institution that provides its services to the unbanked population. It has filed for Rs 1,800 crore IPO with SEBI, out of which Rs 850 crores will be collected from fresh shares and the remaining ones have secondary components of 2,70,55,893 equity shares.
- Policybazaar – It is one of leading online life and general insurance aggregators that plans to raise its IPO in 2021 by around Rs 6,500 crores to make it the fifth Indian startup on the national bourses. Its IPO will have a mix of offer for sale (OFS) and fresh shares. With the potential of booming in the digital economy, Policybazaar claims to have 25 per cent of India’s life insurance and 7 per cent of country’s retail health cover.
- MobiKwiK – It is a leading Indian digital payment company that serves nearly 3 million retailers and 120 million users across India. It plans to raise Rs 1,900 crores through its IPO, where Rs 1,500 crores will have fresh shares and the remaining Rs 400 crores will be an offer for sale by shareholders and promoters.
- Nykaa – It is an Indian lifestyle marketplace founded by Falguni Nayar in 2012. It had earlier planned to raise its IPO in 2020, but was delayed due to Covid-19 pandemic. It may now hit the market with Rs 3,500 – Rs 4,000 crore IPO in 2021-22. This IPO will take the company’s valuation to $4.5 billion.