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3 IPOs that could hit the Street soon. Are you ready?

As of August 31, 2022, public issues aggregated to  ₹34,316 crore on stock exchanges, as per Prime Database. Last year, companies raised a record  ₹1,30,376 crore from public issues. (Shutterstock)Premium
As of August 31, 2022, public issues aggregated to 34,316 crore on stock exchanges, as per Prime Database. Last year, companies raised a record 1,30,376 crore from public issues. (Shutterstock)

  • As per BSE data, a total of 52 IPOs have been launched this year --- with 19 IPOs entering BSE Main Board and 33 IPOs on BSE SME Segment. These 19 companies have been listed on stock exchanges in less than nine months of the current year. In 2021, 64 companies debuted markets.

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The IPO market is performing at full swing with a host of companies launching their public offer. In less than nine months of 2022, a total of 19 companies have launched their initial public offering (IPO). Macroeconomic risks that took a toll on equities globally in early 2022 led to a slowdown in appetite for IPOs. However, the latest IPO Harsha Engineers India became the most subscribed public offer in this calendar year with an oversubscription of 74.70 times on September 16 --- hinting towards a pick up in participation for upcoming IPOs. In the coming days, companies from NBFCs and the tourism segment may launch their IPO.

As per BSE data, a total of 52 IPOs have been launched this year --- with 19 IPOs entering BSE Main Board and 33 IPOs on BSE SME Segment. These 19 companies have been listed on stock exchanges in less than nine months of the current year. In 2021, 64 companies debuted markets.

As of August 31, 2022, public issues aggregated to 34,316 crore on stock exchanges, as per Prime Database. Last year, companies raised a record 1,30,376 crore from public issues.

If you are planning to invest in IPOs, then watch out for the below-mentioned three companies who are likely to launch their public offer soon.

According to an EquityMaster report, three companies are likely to launch their initial public offering (IPO) anytime soon. They are Aadhaar Housing Finance, Five-Star Business Finance, and Ixigo.

Aadhaar Housing Finance IPO

The affordable housing finance company filed its draft prospectus with Sebi in January last year.

As per the latest draft update on Sebi, Aadhaar Housing's IPO aggregates up to 7,300 crore -- comprising of a fresh issue worth 1,500 crore and an offer for sale (OFS) valuing 5,800 crore.

ICICI Securities, Citigroup Global Markets India, Nomura Financial Advisory and Securities, and SBI Capital Markets are the book-running lead managers of the IPO.

Aadhaar Housing Finance is the largest HFC focused on the low-income housing segment in India in terms of AUM, as of March 31, 2021, according to the CRISIL Report. The company is approximately 1.4 times larger than the second largest peer set company based on AUM as of March 31, 2021.

The company is mainly focused on the low-income housing segment, serving economically weaker and low-to-middle income customers, who require small ticket mortgage loans.

The company's gross AUM increased from 100,157.5 million in FY2019, to 114,316.6 million in FY2020, 126,664.1 million as of December 31, 2020, 133,271 million in FY2021 and 140,521.9 million as of December 31, 2021. It has an extensive network of 325 branches, as of December 31, 2021.

Aadhaar Housing has proposed to utilise the net proceeds from the issue for augmenting its capital base to meet future capital requirements.

Sebi granted its approval for the IPO in May this year. The company aims to enter the stock market between mid-October to November.

Five-Star Business Finance IPO

The company will issue IPO for raising 2,751.95 crore. The issue is entirely an offere for sale (OFS). Shareholders like SCI Investments V, Matrix Partners India Investment Holdings II LLC, Matrix Partners India Investments II Extensions LLC, Norwest Venture Partners X Mauritius, TPG Asia VII SF, Deenadayalan Rangasamy, and Varalakshmi Deenadayalan.

The company filed its draft prospectus with Sebi in November last year and received approval from the regulator in January this year. The company plans to enter the market in mid-October to November.

ICICI Securities, Edelweiss Financial Service, Kotak Mahindra Capital Company, and Nomura Financial Advisory and Securities (India) are the book running lead managers for the IPO.

As the IPO is purely OFS, the proceeds will be remitted to selling shareholders of the company.

Five Star Business Finance is an NBFC-ND-SI providing secured business loans to micro-entrepreneurs and self-employed individuals, each of whom is largely excluded by traditional financing institutions.

During the six months ended September 30, 2021, and the financial years 2021, 2020, and 2019, the company has provided loans to more than 185,000 customers in total.

They have an active loan base of 192,270 and 176,467 as of September 30, 2021, and March 31, 2021, respectively. Its AUM has grown to 46,392.91 million as of September 30, 2021 ( 44,453.81 million as of March 31, 2021), from 4,935.88 million as of March 31, 2017, at a CAGR of 65% between the financial year 2017 and six months ended September 30, 2021. While profit for the period/year for the six months ended September 30, 2021, and for the financial years 2021, 2020, and 2019 were at 2,175.47 million, 3,589.94 million, 2,619.51 million, and 1,564.14 million, respectively.

Ixigo IPO

Le Travenues Technology aka Ixigo filed its draft prospectus in August the last year with the market watchdog. Sebi approved the IPO in December 2021. The company plans to raise 1,600 crore via the issue. It plans to debut market in mid-December 2022.

The total IPO consists of a fresh issue worth 750 crore and an offer for sale (OFS) aggregating to 850 crore.

The company plans to utilise the net proceeds for organic and inorganic growth initiatives and general corporate purposes.

Booking running lead managers (BRLM) for the IPO are -- ICICI Securities, Axis Capital, Kotak Mahindra Capital Company, and Nomura Financial Advisory and Securities (India).

Ixigo is a technology company focused on empowering Indian travelers to plan, book, and manage their trips across rail, air, buses, and hotels. The company aims to become the most customer-centric travel company, by offering the best customer experience to users.

Notably, the company is the largest Indian OTA in the online train bookings segment and our train-centric mobile applications, ixigo trains and ConfirmTkt, were collectively the leading B2C distribution platforms for IRCTC with 42% market share, in terms of rail bookings among the OTAs and B2C distributors of IRCTC in Fiscal 2021.

Its revenue from operations has grown at a CAGR of 83.26% between Fiscal 2019 and Fiscal 2021 and were 403.68 million, 1,115.98 million, and 1,355.66 million in Fiscals 2019, 2020, and 2021, respectively.

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