It is no secret that India is one of the hottest investment destinations in the world. With a booming economy and a population of over 1.3 billion, there are plenty of opportunities for investors to make money in India.
In this blog post, we will take a look at some of the most promising IPOs of 2022 that are scheduled to take place in India over the next few years. So if you are thinking about investing in India, then you definitely don’t want to miss this post!
Blog Index
#1. What is an IPO and why are they important for a company’s growth?
Before we look at the upcoming IPOs in India, let’s first understand what an IPO actually is. An Initial Public Offering or IPO is a way for private companies to become public and raise capital.
A company that aims to go public typically hires an investment bank or underwriter to help it through the process. The investment bank will determine a price for the company’s shares and sell them in exchange for money from investors.
Once a company has gone public, it becomes listed on the stock exchange and can now receive financial support from all kinds of investors. The money raised through an IPO is crucial for a company’s growth and it is one of the most important events in its lifetime.
#2. The top IPOs to watch out for in India in 2022
Now that we know what an IPO is, let’s look at the upcoming IPOs in India in 2022. We have shortlisted a few of the most promising companies that plan to go public in the next few years.
| Name of the Company | Issue Size in Rs. Crores (Tentative) | IPO Date (Tentative) |
|---|---|---|
| Adani Wilmar | 4,500 | 2022 |
| Go Airlines | 3,600 | 2022 |
| Arohan Financial | 1,800 | 2022 |
| MobiKwik | 1,900 | 2022 |
| Utkarsh Small Finance Bank | 1,350 | 2022 |
| Ixigo | 1,600 | 2022 |
| Penna Cement | 1,550 | 2022 |
| Keventer Agro | 800 | 2022 |
| Paradeep Phosphates | 1,255 + OFS | 2022 |
| Sterlite Power | 1,250 | 2022 |
| Fincare Small Finance Bank | 1,330 | 2022 |
| LIC | 70,000 | 2022 |
| Seven Islands Shipping | 600 | 2022 |
| PharmEasy | 6,250 | 2022 |
| SAMHI Hotels | 1,800 – 2,000 | 2022 |
| Bajaj Energy | 5,450 | 2022 |
| Apeejay Surrendra Park Hotel | 1,000 | 2022 |
| Gemini Edibles and Fats | 2,500 | 2022 |
| ESAF Small Finance Bank | 998 | 2022 |
| Medi Assist Insurance TPA Pvt. Ltd. | 800 | 2022 |
| Inspira Enterprise India Ltd. | 800 | 2022 |
| AGS Transact Techno | 800 | 2022 |
| Muthoot Microfin | 700 | 2022 |
| Fusion Microfinance | 600 + OFS | 2022 |
| Chemspec Chemicals | 700 | 2022 |
| Shri Bajrang Power and Ispat Ltd | 700 | 2022 |
| Hinduja Leyland Finance | 500 | 2022 |
| VLCC Healthcare | 300 + OFS | 2022 |
| Studds Accessories | 450 | 2022 |
| Harsha Engineers | 370 | 2022 |
| ESDS Software Solutions Limited | 322 + OFS | 2022 |
| Annai Infra Developers | 200 – 250 | 2022 |
| Popular Vehicles and Services | 150 + OFS | 2022 |
| Narmada Bio-chem | 90 | 2022 |
| Prudent Corporate Advisory Services | To be updated | 2022 |
| Tamilnad Mercantile Bank | 1,000 | 2022 |
| Tracxn Tech | Entirely OFS | 2022 |
| HDB Financial | To be updated | 2022 |
| Century Metal Recycling | To be updated | 2022 |
| Aakash Educations | To be updated | 2022 |
| OYO Rooms | 7,000 + OFS | 2022 |
| Droom | 2,000 + OFS | 2022 |
| Delhivery | 5,000 + OFS | 2022 |
| Ecom Express | To be updated | 2022 |
| Navi | To be updated | 2022 |
| Snapdeal | 1,250 + OFS | 2022 |
| Capillary Technologies | To be updated | 2022 |
| Ola | To be updated | 2022 |
| BYJU’s | To be updated | 2022 |
| Swiggy | To be updated | 2022 |
| *The issue size and issue dates will vary. |
#3. How to invest in an IPO and what you need to know before you do
If you plan to invest in an IPO, then you must know a few things first. IPOs are significantly riskier than other investments and there is always a chance that you may lose your money.
Some of the most important things to consider before investing in an IPO are:
- The price – You should never invest your money into something that you don’t understand. It’s better to invest in something that you’re aware of than taking a risk on something new. That is the reason why you need to make sure that you understand how much money the company is asking for, and why. If there’s anything unclear about it, definitely don’t invest.
- Interested investors – The reason why companies go public is so that they can access millions of dollars in funding, to develop their business and expand.
- The company – It’s not just about investing in a new company. If you really want to invest in an IPO, then you must research the company and its market. You need to make sure that the company is actually an IPO and not a scam!
- Timing – If you’re going to invest in an IPO, then you need to know when to buy. You mustn’t invest right before the IPO starts, because you may lose out on some of the profits. It’s also important that you don’t invest too late into the IPO, because then your investment may be locked in for years.
Don’t miss checking – Factors to Check before Investing in IPO
Conclusion
After you’ve read the prospectus, it is important to know that there are several risks associated with investing in an IPO. There could be unexpected events or disruptions affecting your investment and the company may not perform as well as expected. Read this post about how to invest wisely for more information on what factors should go into any decision to invest in an IPO.
Also Read – Types of IPO in India
