Upcoming IPOs Expected In 2022 - Aadhar Housing Finance, Delhivery, Emcure Pharma, LIC, & More!

Fuelled by a recovering market, companies like Zomato, Nykaa, and others raised an eye-watering ₹1,18,704 crores in 2021. During the same year, Paytm’s IPO was crowned as India’s biggest at ₹18,300 crores. 

The IPO calendar of 2022 is just as heavy-hitting and may be on track to pick up where 2021 left off, as India may witness its biggest public issue ever with LIC’s behemoth of an upcoming IPO in 2022. 

LIC’s IPO aside, there are plenty of other companies vying to go public like Bajaj Energy, Emcure Pharma, Delhivery, and more. We’ll explore these top upcoming IPOs of 2022 in greater detail. You can also consult a Cube Wealth coach or download a Cube Wealth application. 

List Of Upcoming IPOs In 2022

The 2022 IPO calendar is pretty stacked so we’ve shortlisted the top 10 ones based on their IPO size. The Indian market is significantly diverse, which is reflected in the companies going public. 

On one hand, you have legacy companies like LIC and Ruchi Soya opening up to public investors while on the other hand, you have a modern AI-powered e-commerce marketplace Droom going public.

Healthcare & Pharmaceuticals IPOs In 2022

1. API Holdings IPO

API Holdings is a healthcare conglomerate that owns some of India’s top brands like Pharmeasy and Thyrocare. The digital healthcare company is on course to raise ₹6,250 crores with its upcoming IPO in 2022. 

Unlike other companies on the list so far, API Holdings’ IPO will only have a fresh issue of shares worth ₹6,250 crores and no offer-for-sale. Founded in 2019, API Holdings’ net sales for FY21 stood at ₹345.77 crores.

This figure is down from the ₹676.07 crores net sales it registered in FY20. On the flip side, net loss decreased in FY21, going from ₹298.74 crores in FY20 to ₹227.84 crores.

2. Emcure Pharmaceuticals

Emcure is a multinational pharma company that operates in India and the US. The pharma company is involved in research and development in a variety of domains like HIV/AIDS, cancer, gynaecology, and more. 

With its upcoming IPO in 2022, Emcure is looking to tentatively raise ₹4,500 crores. Emcure’s IPO is broken down as follows:

• A fresh issue of shares worth ₹1,100 crores 
• An offer-for-sale of ₹3,400 crores
• A (tentative) pre-IPO placement of up to ₹200 crores*

Emcure registered revenue of  ₹6,091.8 crores in FY21, which is better than its revenue in FY20 of ₹5,130.8 crores and FY19 of ₹4,815.6 crores.

Net income from the revenue stood at ₹418.6 crores, ₹100.6 crores, and ₹202.9 crores in FY21, FY20, and FY19 respectively. Emcure was founded in 1983 and caters to 70+ countries.

3. VLCC Healthcare

VLCC Healthcare is a pharma company that provides tools and services to manage weight and weight loss. Founded in 1989, reports suggest that VLCC Healthcare is likely to go public in 2022. 

VLCC’s upcoming IPO in 2022 is said to be worth ₹300 crores and is broken down as follows:

• A fresh issue of shares worth ₹300 crores
• An offer-for-sale of 89.22 lakh equity shares
• A (tentative) pre-IPO placement of ₹100 crores*

VLCC’s revenue stood at ₹565 crores in FY21 while EBITDA was ₹150.19 crores. This isn’t the first time VLCC Healthcare has filed for an IPO. 

Back in 2015, the pharmaceutical company got approval from SEBI to go through with the IPO but decided to postpone it.  

4. Skanray Technologies

Skanray Technologies is a medical device manufacturer that specializes in three broad domains that include Critical care products, Radiology products, and Respiratory management systems.

Founded in 2007, Skanray Technologies is looking to go public with its upcoming IPO in 2022 that may fetch it upwards of ₹400 crores. The IPO is broken down into:

• A fresh issue of shares worth ₹400 crores
• An offer-for-sale of 14,106,347 shares

Skanray Technologies logged a net profit of ₹85.4 crores in the first 5 months of FY21. 

Finance & Fintech IPOs In 2022

1. Aadhar Housing Finance IPO

Founded in 2010, Aadhar Housing Finance is known to offer affordable housing finance solutions to Indians across 290+ branches. The company is likely to launch a new IPO in 2022 worth ₹7,300 crores.

Aadhar Housing Finance IPO is broken down as follows:

• A fresh issue of shares worth ₹1,500 crores
• An offer-for-sale of ₹5,800 crores

For FY20, Aadhar Housing Finance logged a total income of ₹1,388 crores that was better than the ₹1,265 crores registered in FY19. PAT also improved in FY20 at ₹189 crores from ₹161 crores in FY19. 

2. One Mobikwik Systems 

Founded in 2009, One Mobikwik Systems is a fintech company that operates in spaces like payments, buy now pay later (BNPL), wallets, and more. 

OMS is likely to debut on the Indian market with an upcoming IPO in 2022 worth ₹1,900 crores. The new IPO is broken down as follows:

• A fresh issue of shares worth ₹1,500 crores
• An offer-for-sale worth ₹400 crores

OMS’ revenue from operations fell in FY21 to ₹288 crores from ₹355 crores in FY20 while loss also increased to ₹111 crores from ₹99 crores during the same period. 

3. ESAF Small Finance Bank IPO

A small finance bank makes banking services accessible to the underbanked. ESAF Small Finance Bank is one of them and is looking to go public with an upcoming IPO in 2022 worth ₹997.78 crores. 

ESAF Small Finance Bank’s IPO is split into the following components:

• A fresh issue of shares worth ₹800 crores
• An offer-for-sale of ₹197.78 crores

For FY21, ESAF Small Finance Bank revealed that it generated ₹1,767 crores in revenue versus ₹1,564 crores in FY20. Profit slipped during the same period to ₹105 crores from ₹190 crores. 

Food & FMCG Sector IPOs In 2022

1. Gemini Edibles & Fats IPO

Gemini Edibles & Fats IPO is a subsidiary of Singapore-based Golden Agri-Resources (GAR). Founded in 2010, GEF specialises in edible oils and fats and is likely to go public with a new IPO in 2022. 

GEF’s IPO is expected to be worth ₹2,500 crores that’s composed solely of an offer-for-sale. GEF reported a net profit of ₹570.77 crores with revenue from operations of ₹7,765.96 crores in FY21. 

In FY20, GEF’s net profit stood at ₹185.85 crores with revenue from operations of ₹6,500.25 crores. 

2. Keventer Agro IPO

Founded in 1986, Keventer Agro is one of the biggest FMCG brands in India. It deals in categories like frozen foods, dairy, beverages, hospitality, and more. 

Keventer Agro’s upcoming IPO in 2022 is set to be worth at least ₹350 crores. The IPO is expected to raise ₹350 crores via a fresh issue of shares with an offer-for-sale of 10,767,664 shares. 

With its IPO on the horizon, Keventer Agro registered revenue of ₹836 crores in FY21, lower than ₹958 crores in FY20. Net loss stood at ₹76.17 crores in FY21 whereas there was a PAT of ₹3.41 crores in FY20. 

e-Commerce Sector IPOs in 2022

1. Delhivery IPO

Delhivery is a courier and shipping service used by brands like Amazon, Nykaa, Snapdeal, Myntra, and more. The logistics company’s new IPO in 2022 is likely to raise ₹7,460 crores. 

Delhivery’s IPO is broken down as follows:

• A fresh issue of shares worth ₹5,000 crores
• An offer-for-sale of ₹2,460 crores

In Q1 FY22, Delhivery’s revenue from operations stood at ₹1,317.72 crores with a consolidated net loss of ₹129.58 crores. Revenue from operations for FY21 stood at ₹3,838 crores with a loss of ₹415 crores. You can also consult a Cube Wealth coach or download a Cube Wealth application. 

2. Droom Technology IPO

Droom is a machine learning and AI-powered e-commerce marketplace for automobiles. Founded in 2014, Droom’s new IPO in 2022 is looking to raise ₹3,000 crores. 

Droom’s IPO is broken down as follows:

• A fresh issue of shares worth ₹2,000 crores
• An offer-for-sale of ₹1,000 crores
• A (tentative) pre-IPO private placement of ₹400 crores*

The automobile marketplace generated ₹172.17 crores in revenue from operations during FY20 compared to ₹125.33 crores in FY21. Droom’s PAT dropped to ₹68.88 crores in FY21 versus ₹89.60 crores in FY20. 

3. Snapdeal IPO

Snapdeal is an e-commerce company that primarily deals with small to medium ticket size products. Founded in 2010, Snapdeal is looking to raise at least ₹1,250 crores with its upcoming 2022 IPO. 

The e-commerce company’s IPO is divided into:

• A fresh issue of shares worth ₹1,250 crores
• An offer-for-sale of 30.77 million shares

The soon-to-be-public Snapdeal generated ₹471 crores in revenue during FY21 as opposed to ₹846 crores in FY20. Snapdeal’s loss for FY21 fell by 54% to ₹125 crores. 

Other Sectors IPOs In 2022

1. LIC IPO (Insurance)

Life Insurance Corporation (LIC) is India’s largest insurance outfit. LIC is backed by the state and was founded in 1956. Reports suggest that LIC’s upcoming IPO in 2022 will raise ₹60,000-80,000 crores. 

This would mean that LIC’s public issue would become the biggest IPO in India by a long distance. The IPO is a direct offer-for-sale of 310 million shares worth upwards of ₹60,000 crores. 

There will be no fresh issue of shares and up to 10% of the issue coming from the offer-for-sale will be reserved for policyholders. LIC has an AUM of ₹37 trillion and 1,500,000+ individual agents. 

The state-owned company revealed that it generated a PAT of ₹234.91 crores in Q3 FY22, which has grown significantly from ₹0.91 crores year on year. 

LIC also revealed that the combined profits for the first three-quarters of FY22 stood at ₹1,642.78 crores versus ₹7.08 crores during the same period last fiscal year.  

2. Bajaj Energy IPO (Power)

Bajaj Energy is a thermal power generation company that operates primarily in Uttar Pradesh. Bajaj Energy’s upcoming IPO in 2022 is expected to raise ₹5,450 crores with the following breakup:

• A fresh issue of shares worth ₹5,150 crores
• An offer-for-sale of ₹300 crores

Bajaj Energy’s revenue for FY18 stood at ₹898 crores versus ₹1,406 crores in FY17. The company registered a loss of ₹2.07 crores in FY18 as opposed to a profit of ₹105 crores in FY17. 

3. Bharat FIH IPO (Electronics)

Bharat FIH is an electronics manufacturing services provider that is Xiaomi Technology’s top provider of primary phone manufacturing and assembly services. 

Bharat FIH is likely to go public with an upcoming IPO of ₹5,004 crores that’s split into:

• A fresh issue of shares worth ₹2,502 crores
• An offer-for-sale of ₹2,502 crores

In FY21, Bharat FIH reported revenue of ₹15,854.86 crores with an EPS of ₹0.68. In FY20, the EMS provider’s revenue stood at ₹26,635.56 crores with an EPS of ₹2.08.

Conclusion

The IPO calendar for 2022 contains several interesting names like LIC, Emcure Pharma, One Mobikwik Systems, and more that are looking to raise ₹5,000 to ₹80,000 crores from retail and institutional investors. 

Eye-watering raises aside, Indian IPOs have a less than stellar reputation after listing on the market. Paytm, India’s largest IPO so far has lost more than ₹960 or 60% in value since it debuted. You can also consult a Cube Wealth coach or download a Cube Wealth application. 

That’s why IPOs are generally believed to be a significantly risky investment, especially during volatile times like these. Alternatives to IPOs that carry potentially high returns yet have a solid track record are:

• Asset Leasing by Grip (12% post-tax returns)
• International mutual funds (12-16% returns)
• Small-cap mutual funds (10-12% returns)
• Equity advisory by Purnartha (CAGR of 35% as of 01-22)

FAQs 

1. Are there any risks associated with investing in IPOs?

Ans. Yes, IPOs can be risky. New public companies may lack a track record, and their stock prices can be highly volatile in the early stages. It's important to assess the risks carefully.

2. How can I stay updated on upcoming IPOs and their details?

Ans. You can stay updated on upcoming IPOs by following financial news sources, subscribing to IPO alert services, and keeping an eye on stock exchange announcements.

3. Are there any regulations governing IPOs?

Ans. Yes, IPOs are subject to regulations and oversight by financial authorities in each country where they are issued. These regulations are designed to protect investors and ensure transparency.

4. Can I participate in IPOs from outside the company's home country?

Ans. It is possible to participate in IPOs of foreign companies, but the process and eligibility may vary by country and brokerage. Check with your brokerage for details on international IPO participation.

Note:

*The size of the IPO will go down if the placement goes through. 

**Facts & figures are true as of 15-03-2022. None of the information shared here is to be construed as investment advice. Exercise caution when investing in assets like stocks, mutual funds, alternative investments, and others.

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