With the beginning of a new financial year, there are new plans in the pipeline and new hopes. It’s also the time when we revisit our financial plans and look forward towards new investments. Companies also await the new financial year for restructuring, expansion or raising funds. One of the most common ways for companies to raise massive funds is through releasing IPOs or initial public offerings. While a lot of companies release their IPOs each year, there are a few that stand out. Prior to investing in an IPO, it’s advised to get info about company performance, investor history, balance sheets, debt, assets, liquidity etc. Here are some of the top initial public offerings that will hit the market in 2021:
Aadhar Housing Finance
The company has filed for an IPO of over Rs.7300 Crores. Of this, fresh shares will be about Rs.1500 Crores and Rs. 5800 Crore would be by BCP Topco VII, an entity of Blackstone Group, a private equity firm with over 98% stake in Aadhar Housing Finance.
Barbeque Nation Hospitality
The prominent restaurant chain has been given a nod by SEBI to raise over Rs. 1200 Crores by releasing IPO. It is expected to be released by mid-year.
Founded in 1986, the auto component manufacturer has received a green flag to launch IPO. It has also filed the draft red herring prospectus with SEBI.
EdTech start-up BYJUs has the backing of leading venture capital firms like Sequoia. Its market valuation is estimated to be over USD 10 billion. With the surge in online classroom approach since the past one year, there has been a manifold increase in BYJUs subscribers and viewers. While the exact date is still not known, but the company would launch its IPO this year.
Bajaj Energy IPO will be released this year. The IPO size would be around Rs. 5,450 crores. Bajaj Energy is eyeing project expansion and is most likely releasing the IPO for that reason. From the money raised by the IPO, the company will acquire Lalitpur Power’s 1,980 MW unit. Energy sector shows growth prospects for the future, so for those looking for long-term growth, Bajaj Energy IPO could be a good option. It’s one of the awaited IPO.
The Kerala-based jeweller has already filed the draft prospectus for IPO 2021 worth Rs. 1,750 Crores. The company intends to raise over Rs. 1,000 Crore via IPO release and its two main promoters will sell their stakes worth Rs. 250 Crore and Rs. 500 Crores respectively. The stock would be public this year, though the exact release date is not known yet. Operational revenue of Kalyan Jewellers is Rs. 10,181 crores, while last year it was Rs. 9,814 Crores.
The IPO of Life Insurance Corporation of India will be released this year, announced Finance Minister Nirmala Sitharaman in her annual budget speech. Over 10% of the issue will be reserved for LIC policy holders. India’s biggest and oldest insurance provider going public would be among the most awaited IPOs of the year. Insurance sector in India is growing at a rapid pace and LIC is a valued name. Those eyeing investments in the insurance sector can wait for the rollout of LIC IPO. The government expects to raise Rs. 80,000 crores from the IPO. LIC is among the most-sought initial public offerings.
Indian e-commerce giant is all set to release its IPO this year, but most likely it would be listed on a stock exchange in the US. Flipkart’s market valuation is about USD 25 billion and a few years ago Walmart acquired a stake in it.
The online courier delivery company caters to over 20% of the market in its segment and has raised close to USD 800 million through VC funding. Dehlivery is backed by the Japanese Softbank. It’s IPO is expected to be released this year.
India’s prominent cab aggregator company enjoys the backing of international giants like Tencent and Tiger Global. Ola has raised more than USD 3 billion and is looking to launch an IPO in 2021. Its revenue registered a spike of 39% in 2 years fom 2019. The initial public offering is expected to be launched before the end of this year.
How to check for top 2021 IPO?
All stock exchanges like BSE, NSE have special sections that provide information about initial public offerings. Fetching information straight from exchange websites is preferable to other methods because it is frequently updated and is bound to be more reliable than others. Official IPO prospectus can also be downloaded from exchange websites. For knowing about all initial public offerings, checking different exchange websites is a better option than just sticking to one. One of the limitations of exchange websites is that since they upload information only after a rigorous verification process, there may be some delay in recent information. Exchange websites are widely preferred to get to know about IPOs.
Red Herring Prospectus
If you have made up your mind about the initial public offerings that you want to buy, then the next step is going through the draft red herring prospectus (DRHP) to grasp all essential takeaways about the company. As per SEBI (Securities and Exchange Board of India) guidelines, it is compulsory for all companies that want to issue IPOs to release the DRHP. It provides all the relevant financial information about the company that you need to know before investing: company’s past, growth avenues, management structuring, founders, vision, challenges, top management, market reputation. Once you are done with tracking new IPOs, you should check out the DHRP.
While deciding on purchase of initial public offerings, it’s essential to dig deep about the company and gain insights about its financial statement. In order to diversify your stock portfolio and to reduce risk, it’s better to invest in top 2021 IPO across different sectors. Look for sectors that are poised to show growth in the future, and keep an eye on reputed players across market segments that are planning to launch initial public offerings. If you plan to invest in an IPO in 2021, research thoroughly about the company’s background and its reason for going public.