What is an IPO?
The first time a privately held corporation sells shares to the general public is through an initial public offering (IPO). Companies that go public raise money through IPOs for a variety of purposes, including operating capital, debt repayment, acquisitions, and a host of others. By completing an online IPO application provided by stockbrokers and banks, the investor can apply for initial public offering (IPO) stocks in India. Online IPO applications for UPI-based offerings are available through brokers, and banks provide both UPI and ASBA IPO applications.
A firm that receives a new infusion of cash is more likely to develop and, as a result, see an increase in share value, making upcoming IPOs in the year 2023 an appealing investment opportunity. They are a fantastic approach to generating both immediate and long-term earnings.
Things to keep in mind while looking at an IPO
- The supply and demand of capital for initial public offerings (IPOs). For instance, if a particularly appealing firm announces a sizable IPO issue, it may indicate that a lot of capital will flow away in its direction, and other IPOs may subsequently be available at a cheaper price.
- The investor will be able to assess the business model and financial viability of the firm using the fundamental information about the stock and the company. The investor will also be able to see whether significant shareholders who are more knowledgeable are selling too many shares.
- IPO trends to evaluate market and economic circumstances – It indicates that the economic environment is not favorable for making new bullish investments if the IPOs are failing to measure demand, for example, if they are consistently postponing their release or refusing to declare dates.
Overview of the Indian IPO market in 2023
In 2023, the Indian IPO market has seen a revival with a number of companies making their debut on the stock exchange. The market has been buoyant with investors showing a keen interest in investing in new and upcoming companies. The Indian economy has been growing at a steady pace and this has resulted in an increase in the number of companies that are looking to go public.
In light of this, let’s take a look at the IPOs that will be released in 2023.
List of IPOs
OLA Cabs ( IPO size – 1500 cr)
With over 250 cities in the UK, Australia, New Zealand, and India, it is one of the biggest online cab service platforms in the world. It provides a range of transportation options, including taxis, metered taxis, auto-rickshaws, and bikes. With more than 1.5 million driver-partners, the organisation has a sizable consumer base.
However, the online cab-booking sector as a whole has been seeing a decline in the number of drivers, particularly in metropolises in the post-COVID era, and Ola may need other financial innovations to get out of the rut and contend with newcomers.
Aadhar Housing Finance ( IPO Size- 7300 cr)
Low-income households in semi-rural and rural India can apply for loans from the firm for mortgage-related expenses. The corporation is issuing a new issuance of $15 billion and an offer of sale of $5,800 billion, for a combined total of $7,300 billion.
Mobikwik ( IPO Size- 1900 cr)
Mobikwik began as a mobile wallet to make paying utility bills simpler. These days, a variety of transactions, including e-commerce, food delivery, gas station purchases, etc., support P2P payments via UPI. The One Mobikwik IPO’s total issue amount is about 1,900 crore.
Gold Plus ( IPO Size- 300 cr)
The business is selling 12,826,224 shares through an offer of sale together with a $300 million new issuance. It is the second-largest producer of float glass in India, and it also dominates the clear glass and value-added glass markets. To cover its market borrowings and working capital, it is issuing an IPO.
Hexagon Nutrition ( IPO Size- 100 cr)
The business specializes in nutrition for adults, clinical nutrition, pediatric nutrition, weight control nutrition, etc. The purpose of the company’s IPO is to raise money for working capital and capital expenditures for its subsidiaries as well as to pay off the debts of those companies. The corporation plans to sell 30,113,918 shares and issue a fresh issuance for $100 million.
Capillary technologies ( IPO Size- 850 cr)
The business offers services for SaaS goods and solutions using AI. It has announced the IPO to pay off debt, fund product research and development, as well as strategic acquisitions and investments. The corporation is distributing a new issue for 200 crores and a selling offer of around 650 crores.
Skanray technologies ( IPO Size- 400cr)
The business is engaged in the design, production, development, and quality control of contemporary medical equipment. The IPO consists of 400 crores in new issues and a maximum share offering of 14,106,347. Working capital needs and inorganic expansion will be supported by the funds received from the Skanray IPO.
Ixigo ( IPO Size- 1600 cr)
The firm helps Indian tourists organize, book, and arrange their travel plans for hotels, buses, flights, and trains. Data science and AI-based advancements are used to accomplish this. The offering will consist of a fresh issue of equity shares worth 750 million dollars and an offer for sale worth 850 million dollars. With this money, the firm plans to pursue both organic and inorganic expansion strategies.
Current List of IPOs
|Name of the company||IPO issue date||IPO size|
|OLA cabs||Jan 2023||1500 cr|
|Aadhar housing finance||Jan 2023||7300 cr|
|Mobikwik||Jan 2023||1900 cr|
|Gold Plus||Jan 2023||300 cr|
|Hexagon Nutrition||Jan 2023||100 cr|
|Capillary technologies||Jan 2023||850 cr|
|Skanray technologies||Jan 2023||400cr|
|Ixigo||Jan 2023||1600 cr|
In conclusion, the Indian IPO market in 2023 is poised for growth with a number of companies making their debut on the stock exchange. The companies are diverse in terms of their operations and represent a wide range of industries including technology, healthcare, and consumer goods. The strong management teams and proven track records of these companies make them attractive investment opportunities for the public. Investors should exercise caution and perform thorough due diligence before investing in any IPO.