IPO stands for Initial Public Offering. It is the process by which a private company becomes a public company by offering its shares to the general public for the first time. In an IPO, a company raises capital from public investors by issuing new shares, and existing private shareholders may also sell their shares to the public. Once the IPO is complete, the company’s shares are listed on a stock exchange, allowing them to be traded freely among investors. IPOs are a significant event for companies, as they provide access to additional capital for expansion and offer investors the opportunity to become shareholders in the company.
Here’s a details of upcoming IPOs in 2024
- Ola Electric
Ola Electric, the electric vehicle arm of Ola, is gearing up for a much-anticipated Initial Public Offering (IPO) in 2024, making waves in the financial landscape. The company aims to secure a significant capital boost, targeting a fundraising range of $700 million to $800 million. This ambitious move positions Ola Electric’s valuation in the market at an impressive $7 billion to $8 billion.
Despite encountering challenges such as safety concerns and customer service issues, Ola Electric has witnessed a remarkable surge in revenue. This substantial growth signals a notable shift from its origins as a ride-hailing platform to a key player in the electric vehicle sector. The company’s strategic pivot towards sustainable transportation solutions aligns well with a market increasingly inclined towards eco-friendly energy alternatives.
Ola Electric’s IPO announcement reflects the growing importance of electric vehicles in the global automotive landscape. The substantial valuation sought indicates strong investor confidence in the company’s potential to drive innovation and capture a significant market share. With a focus on providing electric mobility solutions, Ola Electric is poised to contribute to the evolution of the transportation industry, addressing both environmental concerns and the changing preferences of consumers.
As the IPO unfolds, market observers are keenly watching Ola Electric’s journey, recognizing the dynamic landscape of the electric vehicle market and the broader transition towards cleaner, more sustainable transportation options. The company’s ability to navigate challenges, capitalize on its revenue growth, and maintain a strategic focus on sustainability will likely shape its impact on the evolving electric vehicle industry.
2) FirstCry
FirstCry, the omnichannel retailer, is gearing up to file its initial public offering (IPO) papers in the upcoming days, signaling a revival of its plans after delaying the public listing last year amid market volatility. The company’s IPO objective is to secure a substantial funding range of $500-600 million. While the official valuation is yet to be disclosed, insiders familiar with the discussions hint at a potential valuation of around $4 billion at the time of the IPO.
The decision to proceed with the IPO underscores FirstCry’s confidence in the current market conditions and its strategic positioning in the retail sector. The company, known for its omnichannel approach, has played a significant role in the childcare and parenting product space. The funds raised through the IPO are expected to fuel its expansion plans and further strengthen its market presence.
Investors and industry observers will be closely watching FirstCry’s IPO journey, considering the evolving dynamics of the retail market and the company’s resilience in navigating challenges. The anticipated valuation reflects positive market sentiment, and the success of the IPO could position FirstCry as a notable player in the competitive landscape of omnichannel retail.
3) Awfis
Awfis Space Solutions Ltd, a leading provider of flexible workspace solutions, has taken a significant step toward raising capital by submitting preliminary documents to the Securities and Exchange Board of India (Sebi) for an Initial Public Offering (IPO). The Draft Red Herring Prospectus (DRHP) filed with Sebi outlines the company’s IPO plan, encompassing a fresh issue of up to ₹160 crore and an Offer for Sale (OFS) involving 1 crore equity shares.
This move signals Awfis’s strategic move to tap into the public market to fuel its growth and expansion initiatives. The flexible workspace sector has witnessed increased demand, and Awfis has emerged as a prominent player in this dynamic market. The IPO proceeds are expected to support the company’s business objectives, including the expansion of its flexible workspace offerings and further strengthening its market presence.
As the IPO plans progress, investors and industry observers will be keenly watching Awfis’s journey in the public market. The company’s commitment to providing innovative workspace solutions and capitalizing on the evolving work culture positions it favorably in a landscape where flexible work arrangements continue to gain prominence.
4) Unicommerce
Unicommerce, a prominent e-commerce Software as a Service (SaaS) company, is gearing up for its Initial Public Offering (IPO) journey, with plans to debut on the stock market in the latter part of the upcoming year. The startup, operating under the umbrella of AceVector Limited, has taken a significant step forward by engaging the services of investment firm CLSA to manage the book-building process for the IPO.
Unicommerce has positioned itself as a key player in the e-commerce technology space, providing SaaS solutions to streamline and optimize online retail operations. The decision to go public reflects the company’s strategic move to tap into the capital market, fostering growth, and leveraging its position in the dynamic e-commerce landscape.
As the IPO plans unfold, investors and industry watchers will be keenly observing Unicommerce’s trajectory in the public market. The company’s commitment to enhancing e-commerce efficiency and its role in shaping the digital retail ecosystem positions it favorably amid the evolving demands of the online commerce industry.
5) Aakash (Byju’s subsidiary)
Aakash, a major player in the education technology (edtech) sector, caught attention when it was acquired by Byju’s in 2021 for a whopping $950 million. Now, the news is that Aakash is preparing for its big moment – an Initial Public Offering (IPO) – slated to hit the market around mid-2024.
Since joining forces with Byju’s, Aakash has seen a remarkable three-fold increase in its revenue. The company is eyeing an impressive revenue target of ₹4,000 crore and ₹900 crore in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) by the fiscal year 2023-24. Aakash’s stronghold in the test-prep market positions it well, given the anticipated growth in this sector, making its upcoming IPO an attractive prospect for potential investors.
However, it’s essential to note that Byju’s, Aakash’s parent company, has faced some challenges recently. These challenges include issues with lenders, reducing its workforce, and concerns raised by auditors. These factors could draw extra attention from investors, adding an element of scrutiny to Aakash’s IPO journey.
As Aakash gears up to go public, its growth trajectory and performance will be closely monitored by investors and industry observers alike. The edtech sector has been dynamic, with increasing demand for online learning solutions, and Aakash’s IPO will be a significant event in the evolving landscape of education technology.
6) PhonePe
PhonePe, a key player in India’s digital payment scene, is gearing up for its debut in the stock market with an initial public offering (IPO) expected in the 2024-2025 timeframe. Recently receiving a significant boost with a $200 million investment from Walmart, valuing the company at an impressive $12 billion, PhonePe is actively working towards raising a substantial fund of $2 billion.
What sets PhonePe apart is its strategic approach to diversify across various aspects of digital payments. This includes not just typical transactions but also exploring and expanding into different dimensions of the digital financial landscape. The company’s solid growth trajectory further adds to the anticipation surrounding its upcoming IPO.
The financial backing from Walmart and PhonePe’s strategic moves in the digital payments realm make its IPO a topic of interest and speculation. As the digital payment sector continues to evolve, PhonePe’s IPO is expected to be a significant event, drawing attention from investors and market enthusiasts eager to witness the next chapter in India’s digital financial landscape.
7) Oyo
The much-anticipated initial public offering (IPO) of Oyo Rooms has encountered significant delays as the travel-booking platform seeks public funding to address its substantial debt. Initially filing for the IPO, the company took a step back and resubmitted its draft red herring prospectus (DRHP) through a confidential pre-filing route with the Securities and Exchange Board of India (SEBI).
Reports indicate that Oyo Rooms has made substantial adjustments to its IPO plans, notably reducing the size of its public listing by nearly half. The company now aims for a fundraising range of $400-600 million, and what’s noteworthy is that the entire amount is expected to be generated through a primary issuance. This indicates Oyo’s focus on utilizing the IPO proceeds to address its financial obligations and reduce debt.
The decision to opt for a smaller IPO size suggests a strategic move by Oyo to ensure a more focused and achievable fundraising goal. The company’s emphasis on a primary issuance also underscores its commitment to using the IPO proceeds for essential financial restructuring rather than secondary share sales. As Oyo navigates these adjustments, market observers are keenly watching for further developments in this high-profile IPO that will likely play a pivotal role in shaping the future trajectory of the hospitality and travel industry.
8) PharmEasy
PharmEasy, backed by Tata, is exploring the possibility of going public following its robust performance. The company, which recently raised over ₹3,950 crore through a successful rights issue, is now contemplating a potential initial public offering (IPO). In the first quarter of the financial year 2023-24, PharmEasy achieved EBITDA positivity, signaling a positive trend in its financial performance.
However, before moving forward with its plans, PharmEasy awaits approval from the Competition Commission of India (CCI) for its rights issue. Once approved, Ranjan Pai is expected to hold approximately a 15% stake in the company. The funds raised through the rights issue have been earmarked for specific purposes, including reducing debt and supporting organic growth initiatives.
The successful rights issue reflects investor confidence in PharmEasy’s business model and growth prospects. Going public could provide the company with additional capital and a platform to further expand its presence in the healthcare and e-pharmacy sectors. As PharmEasy navigates the regulatory processes and strategic decisions, market observers are keenly watching for developments that will shape its future trajectory in the dynamic healthcare industry.
9) Swiggy
Swiggy, a leading player in the food delivery industry, is gearing up for its much-anticipated debut on the public market in 2024. The company, valued at $10.7 billion, has established a dominant position in India’s competitive food delivery market.
The upcoming initial public offering (IPO) is regarded as a significant milestone for Swiggy, showcasing its remarkable growth trajectory and strong foothold in the food delivery segment. Following in the footsteps of its rival Zomato, Swiggy’s IPO is set to mark its entry into the public markets, signifying a new chapter for the company.
Investors and market observers are keenly watching Swiggy’s move to go public, anticipating how the company will leverage the IPO proceeds to further expand its services and navigate the evolving dynamics of the food delivery sector. As the second major food aggregator in India to embark on this journey, Swiggy’s IPO is expected to be a key event in the country’s tech and startup landscape.
10) PayU India
PayU India, a subsidiary of Prosus, is gearing up for a potential initial public offering (IPO) expected in the latter half of 2024. Renowned for its expertise in financial services, including merchant payments and consumer credit, PayU India demonstrated robust performance by generating $211 million in revenue from its Indian operations during the first half of the current fiscal year.
The impending IPO holds significant importance in the fintech industry, given PayU India’s substantial presence and growth across the payments and credit sectors. As the company prepares to enter the public markets, investors and industry enthusiasts are keenly observing how PayU India will utilize the IPO proceeds to further enhance its offerings, expand market reach, and navigate the competitive landscape of the rapidly evolving financial technology sector. The IPO is poised to be a key moment for PayU India as it charts its course for continued success and innovation in the dynamic Indian fintech space.