Upcoming IPOs In April 2022 - LIC, Droom, One Mobikwik Systems, And More!

The world and indeed India saw more IPOs in 2021 than ever before. In fact, IPOs were so popular in India that Sensex and Nifty stood 7th globally for the number of IPO deals and subsequent earnings in 2021. 

Even with a relatively rocky start to 2022 with an ongoing pandemic, global conflict, inflation, and other uncertainties, the IPO calendar for April 2022 is stacked! 

We’ll take a look at some of these companies that are hoping to go public, including the likes of API Holdings, Droom Technology, and LIC whose IPO in April may become India’s biggest public issue to date. You may also see a Cube Wealth Coach or download the Cube Wealth app to effectively implement these tactics and accomplish long-term financial objectives.

List Of IPOs In April 2022

Paytm’s parent company One 97 Communications holds the record for the biggest IPO in India so far. The payments company successfully raised ₹18,300 crores in 2021. 

LIC, a government-backed insurance company, looks all but set to blow this figure out of the water with a mammoth upcoming IPO in April worth between ₹60,000 to ₹80,000 crores. 

That said, most companies are looking to time their new IPOs to the t in order to maximize their potential earnings. Thus, this list of upcoming IPOs in April 2022 is tentative and may change in the near future.

1. LIC IPO

When someone says ”life insurance” in India, there’s a high chance that you might think of LIC. The state-owned company that has become synonymous with insurance was established on September 1st 1956.

LIC’s upcoming IPO in April 2022 will fetch anywhere between ₹60,000-80,000 crores and is broken down like this:

• No fresh issue of shares
• Offer-for-sale of 310 million equity shares
• Up to 10% of the issue reserved for policyholders
  

The Government of India is putting up 5% of its equity for sale via the OFS. Currently, GoI owns 100% of LIC split across 6,324.9 million shares. 

Take a look at the statistics around LIC:

• AUM of ₹37 trillion 
• 2048 offices
• 1,500,000+ individual agents
• 340+ corporate agents
  

Ahead of its new IPO in April, LIC revealed Profit After Tax (PAT) of ₹1,437 crores in H1 FY22, increasing significantly from ₹6.14 crores same time last year. LIC boasted net retention of 99.88% for H1 FY22. You may also see a Cube Wealth Coach or download the Cube Wealth app to effectively implement these tactics and accomplish long-term financial objectives.

2. API Holdings IPO

API Holdings is a juggernaut in the digital healthcare space and owns brands like Pharmeasy and Thyrocare. Established in 2019, the company is aiming to raise ₹6,250 crores through its new IPO in April 2022. 

API Holdings IPO does not contain an OFS component, which means fresh shares worth ₹6,250 crores will be issued. This also means that promoters and existing investors will not exit their holdings. 

In FY21, API Holdings registered net sales of ₹345.77 crores, down from ₹676.07 crores in FY20. Net loss stood at ₹227.84 crores in FY21, improving from ₹298.74 crores in FY20.

3. Droom Technology IPO

Droom is an online marketplace for automobiles that incorporates modern technology like data science and AI to improve the shopping process. The e-commerce platform was founded in 2014.

With its IPO in April 2022, Droom is looking to raise ₹3,000 crores with the following breakdown:

• Fresh issue of shares worth ₹2,000 crores
• Offer-for-sale of ₹1,000 crores
  

Droom Pvt. Ltd, a holding company based out of Singapore, will offload stock worth  ₹1,000 crores as a part of the OFS. Droom is also mulling over a private placement worth ₹400 crores.  

The fresh issue may be reduced if it is followed through. Droom’s revenue from operations fell from ₹172.17 crores in FY20 to ₹125.33 crores in FY21 while PAT also fell from ₹89.60 crores to ₹68.88 crores.

4. Gemini Edibles & Fats IPO

Gemini Edibles & Fats manufactures edible oil and fats. GEF is a subsidiary of Singapore-based Golden Agri-Resources (GAR), which has a market cap of SG$3.871 billion on the Singapore stock exchange. You may also see a Cube Wealth Coach or download the Cube Wealth app to effectively implement these tactics and accomplish long-term financial objectives.

Now, GEF is hoping to go public with an IPO in April worth ₹2,500 crores. Back in August 2021, the IPO was in hot water as it was put on abeyance (suspension) by SEBI but was cleared soon after in September. 

The IPO is broken down into a straightforward offer-for-sale, which implies that promoters and existing investors will sell their stock in GEF worth ₹2,500 crores. 

Founded in 2010, GEF reported revenue from operations of ₹7,765.96 crores in FY21, up from ₹6,500.25 crores in FY20. Net profit also jumped to ₹570.77 crores from ₹185.85 crores during the same period.

5. One Mobikwik Systems IPO

One Mobikwik Systems owns fintech brands that operate in the wallet, BNPL, and payment gateway space. Founded in 2009, One Mobikwik Systems hopes to raise ₹1,900 crores with its IPO in April 2022. 

The IPO is broken down as follows:

• Fresh issue of shares worth  ₹1,500 crores
• Offer-for-sale worth ₹400 crores
  

One Mobikwik Systems posted revenue of ₹302 crores in FY21, marginally lower than in FY20 when it was ₹369 crores. Total assets increased in the same period from ₹337 crores to ₹423 crores. 

FAQs 

1. How do I evaluate whether to invest in a specific IPO? 

Ans. Evaluating an IPO involves conducting due diligence on the company's financials, management team, industry outlook, and the proposed IPO price. It's often advisable to consult with a financial advisor for guidance.

2. Are IPO investments suitable for long-term or short-term goals? 

Ans. IPO investments can be suitable for both long-term and short-term goals, depending on the investor's objectives and the company's growth potential.

3. What is the process for selling shares acquired through an IPO? 

Ans. Shares acquired through an IPO can be sold in the secondary market through your brokerage account. The sale process is similar to selling shares of any publicly traded company.

4. Are there tax implications when investing in IPOs? 

Ans. IPO investments can have tax implications, such as capital gains tax, depending on the holding period and the specific tax laws in your country. It's advisable to consult with a tax professional for guidance.

Conclusion

While investors wait for the upcoming IPOs of April 2022, it is important to note that the success rate of IPOs in India is significantly low, even without pandemics, wars, and high inflation.

Take for example Reliance Power (ticker: RPOWER) whose IPO raised  ₹11,700 crores in 2008. Today, RPOWER’s market cap is ₹4,607 crores, meaning it took a plunge of over 60% in 14 years.

Instead, investors who have a high risk appetite and would like the comfort of a solid track record in an asset could explore options like:

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

Note: Facts & figures are true as of 10-03-2022. 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.