5 Companies that Have Big Plans for 2021
The year 2020 was typically a difficult year for everyone, full of crisis and the reason is one and only coronavirus. The year started out badly for the IPO markets due to COVID-19. But after a recovery in June, IPOs have delivered one record-breaking performance after the other. The year 2020 witnessed around 24 companies launching their IPOs and raising nearly 60 percent more cash than the previous year. Indian companies raised nearly 30,000 crore from investors in 2020. According to several analysts, the scenario of ‘doing well’ will continue in the year 2021. It is expected that this year the healthcare, technology, and IT services stocks will remain in focus as the world adapts to a new way of life. The imminent arrival of the COVID-19 vaccine could boost the infrastructure sector too as companies set up cold storage facilities. Starting from the non-banking financial company (NBFC) to a restaurant franchise and online platform, a number of companies are set to hit the capital markets this year. Let’s have a look at some of the likely IPOs which are scheduled for the year 2021.
The Softbank-backed grocery startup Grofers Co-founder and CEO Albinder Dhindsa told PTI that the company started making an operational profit in January and expected to become cash positive by the end of the year 2020. Earlier the company had plans to go public in 2022. The company closed the financial year with a revenue of around Rs 2,500 crore and the valuation of Grofers is estimated to be close to Rs 6,000 crore. Grofers revised its plans and revealed that it may hit the capital markets by December 2020. Though, that hasn’t happened yet. Hence it is now expected to launch it sometime early in the year 2021. The startup, which competes with BigBasket, Flipkart Supermart, and JioMart, hasn’t revealed details about its IPO yet.
Kerala based Indian jewellery showroom chain, Kalyan Jewellers is one of the leading designer, manufacturer and seller of gold and diamond jewellery. The company has 45 years of industry experience and brand presence in India and abroad. According to reports, at the end of June 2020, Kalyan Jewellers had 107 showrooms across 21 Indian states and union territories and 30 showrooms in the Middle East. In FY 2019-2020, the firm earned a revenue of 101,009.18 million. Kalyan Jewellers is also expected to launch a 1,750 crore initial public offering (IPO) in the first quarter of the calendar year 2021. The 1,750 crore IPO will be the largest in its sector. The issue will consist of a fresh fundraise of 1,000 crore and sale by promoter TS Kalyanaraman and the Warburg Pincus of 750 crore.
Life Insurance Corporation (LIC)
The IPO from LIC is one of the most awaited IPO of 2021. Established in 1956, the state-owned life insurer and investor is also the largest in the country. It has headquarter located in Mumbai and branches spread across different locations in India. In the budget session of FY 20-21, Finance Minister Nirmala Sitharaman announced the proposal of minority shares selling of LIC through IPO launch. Given the sheer size of the corporation, it will be the biggest IPO launch in India. The government has asked bids from at least two transaction advisors with previous experience in handling IPO size of 5,000 crores in a pre-IPO launch activity. The IPO is likely to be held in the first half of 2021. In Budget 2020, the government had set a target of 90,000 crore to be collected through selling stakes in LIC and IDBI Bank.
MTAR Technologies, a Hyderabad-based precision engineering company announced its planning to file its draft initial public offering (IPO) papers soon. Backed by Mathew Cyriac, the former India private equity Co-Head of Blackstone, MTAR Technologies develops and manufactures components and equipment for the defence, aerospace and nuclear energy sectors. The company has a robust order book of over 300 crore and they are expecting another 200 crores of orders in Q4. The company is also in the process of setting up an additional facility at Adibatla (Telangana) which is expected to become operational soon. MTAR currently operates out of seven manufacturing facilities including, an export-oriented unit. MTAR works with clients such as Indian Space Research Organization, Defence Research and Development Organization, Nuclear Power Corporation of India Ltd and US-based Bloom Energy Corp., besides catering to other well-known establishments like Bharat Dynamics, Hindustan Aeronautics, BrahMos and Rafael.
Founded in 2008, Zomato’s recent revenue performance was strong, growing 105 percent in FY 2020 from the previous year. Over the same period, the company’s losses also grew by 47 percent. In the first quarter of 2020-21, the current fiscal year, the company’s earnings stand at $41 million while the losses stand at $12 million. Last year, the company raised more than a billion dollars. The food delivery startup closed its pre-IPO funding of $660 million and is gearing up to hit the Indian capital markets. The funds have been raised at a post-money valuation of $3.9 billion. According to reports, Zomato CEO Deepinder Goyal, in an email to his employees, said that the company is looking to list publicly in the first half of 2021. Although there aren’t many details available on its IPO, it will be a top contender to watch out for in 2021.