InvestorQ : How does the IPO pipeline look like in the next year from Jan-21 onwards?
Anamika Sodhani made post

How does the IPO pipeline look like in the next year from Jan-21 onwards?

Angel dcosta answered.
7 months ago

There has been a torrent of IPOs in recent months, but it is likely to get a lot more intense in the next few months. According to estimates based on DRHP filing with SEBI, there are nearly 30 IPOs due to raise Rs.30,000 crore in the IPO market in the coming year.

That is surely quite a lot. Despite the COVID pandemic, the current year has seen Rs.25,000 crore worth of IPO collections so far. Most of this happened in the post COVID scenario. This is more than twice the figure achieved by IPOs in the previous year 2019 and is indicative of the intensity of fresh capital raising.

Some of the mega IPOs to hit the IPO market next year include Kalyan Jewellers, Indigo Paints, Stove Kraft, Park Hotels, Mrs Bectors Food and Zomato. This is just an indicative list and there are a lot more companies that are slated to hit the IPO market.

While LIC looks unlikely to hit the market in FY21 due to a plethora of regulatory hurdles, it should surely take off in FY22. That will be a gigantic Rs.1 trillion IPO. There are other big ones in the anvil like Kalyan expected to raise Rs.1750 crore while Indigo Paints, backed by Sequoia Capital, will raise in the vicinity of Rs.1000 crore.

The year 2020 did see some mega IPOs like SBI Cards, UTI AMC, CAMS and Gland Pharma. Most IPOs did well post listing with Gland Pharma giving phenomenal returns despite getting very tepid oversubscription during the IPO.