Following an eventful year in 2020 which saw a sharp and brutal selloff followed by an equally impressive but unanticipated recovery, we are now in 2021. With the markets now in much better shape, investors have reasons to look more favorably at 2021. This is especially true for the upcoming IPOs in 2021 since high liquidity and better sentiments will mean more initial offerings in this year.
Unsurprisingly, the list of upcoming IPOs in 2021 is dotted with some very big names backed by venture capital and private equity firms.
Upcoming IPOs in 2021 – Top forthcoming IPOs in India
| IPO | Issue Size (in INR) | Issue Date |
| Clean Science and Technology | 1,546.6 crore | July 2021 |
| GR Infraprojects | 963.28 crore | July 2021 |
| Glenmark Life Sciences | 1,160 crore | July 2021 |
| Zomato Limited | 8,250 crore | 2021 |
| Nuvoco Vistas | 5,000 crore | 2021 |
| Shriram Properties | 1,250 crore | 2021 |
| Go Airlines | 3,600 crore | 2021 |
| ESAF Small Finance Bank | 1,000 crore | 2021 |
| Seven Islands Shipping | 600 crore | 2021 |
| Arohan Financial Services | 1,800 crore | 2021 |
| LIC | 80,000 crore | October 2021 |
| Fincare Small Finance Bank | 1,300 crore | August 2021 |
| NCDEX | 500 crore | 2021 |
Life Insurance Corporation of India (LIC)
LIC IPO is simply the most anticipated offer in India this year. The insurance major is likely to be valued more than INR13 lakh crores. Given the humongous size of the company, even offering 5% equity in the offer is likely to result in INR65,000 crore float. It will require several changes in the regulatory and market setup to accommodate the size of the IPO.
As of now, Coal India IPO takes the crown of the biggest public offer in India and its size of INR15,200 crore presents the stark difference between the two IPOs. However, this size is likely to help retail investors with firm allotment. Taking the ground work ahead, the Department of Investment and Public Asset Management (Dipam) has finalized Milliman Advisors LLP India for valuing the insurance behemoth ahead of the IPO.
Zomato – Most interesting of upcoming IPOs in 2021
Online food ordering player Zomato is yet another entry in the list of interesting upcoming IPOs in 2021. Although it is yet to file draft prospectus in this regard, the company has made some executive changes keeping the public offer in mind. The offer is targeted for the first half of 2021 even as Zomato recently completed a INR4,620 crore (USD660 million) funding round ahead of the IPO.
The food tech unicorn isn’t profitable but that is unlikely to deter investors looking for business growth, grey premiums and listing gains. During FY2020, the company’s losses surged 160% to INR2,451 crore while revenues jumped 98% to INR2,485 crore.
HDB Financial Services
HDB Financial Services – a subsidiary of HDFC Bank – is also likely to go public this year, making it fifth group company to list on stock exchanges. The nonbanking finance unit’s IPO is likely to mobilize INR10,000 crore and its parent has already hired merchant bankers for the offer. Apart from consumer loans, the company offers enterprise loans and asset financing.
The company has posted impressive performance in recent years. For the year ended 31 March 2020, HDB Financial Services posted profit of INR1,005 crore on revenues of INR10,756 crore. In comparison, its top-line stood at just INR3,302 crore in FY2016, according to annual reports on its website. Despite this high growth, HDB has managed to keep the quality of its credit profile intact. Being an HDFC-group company, HDB is likely to fetch premium valuations as well as another entry in the forthcoming IPOs in 2021.