Initial Public Offerings (IPOs) have skyrocketed in India since 2021. An initial public offering, or IPO, is the process through which a privately held company or a government-owned entity raises capital by selling shares to the general public or new investors. The firm is listed on the stock exchange following its first public offering.

When launching an IPO, the firm must register its offer document with the market regulator, the Securities and Exchange Board of India (SEBI). A complete offer document includes information about the firm, its promoters, its projects, financial data, the reason for acquiring funds, issuance terms, etc.

Zomato, a food delivery service, was the first to go public, followed by Policy Bazaar, Paytm, and Nykaa. All of these firms' stock values have plummeted following their initial public offerings, causing market players to complain that the IPOs were overvalued, leaving little money on the table for both IPO and post-IPO investors.

According to Ernst & Young's Global IPO Trends Report for 2021, 2,388 IPO deals generated $453.3 billion globally in 2021, representing a 60% increase in volume and revenue over 2020. In India, 63 firms raised $1.19 trillion in IPOs, more than four times the amount raised in 2020 (26,628 crore).

According to current trends, the IPO market will only see an increase in the number of enterprises trying to enter the market. Many big corporations, including the much-anticipated Life Insurance Corporation of India (LIC), are expected to enter the market in March 2022.

SEBI’s New Rules & Regulation

The market regulator, the Securities and Exchange Board of India (SEBI), has suggested strengthening disclosure rules for new-age enterprises contemplating initial public offerings (IPOs). According to a SEBI discussion paper, such companies would be forced to provide more information about how they determined the offer price for their IPOs. This strategy seeks to cover just those firms who do not have a three-year track record of profitability, while the rest of the industry's criteria remain unchanged.

The announcement coincides with a sudden drop in stock values for several newly-listed tech companies following their first public offerings.

Current IPO requirements, according to SEBI's discussion paper, only require businesses to publish "conventional measures" such as important accounting ratios. However, since new-age businesses are frequently losing money, the regulator concluded that further disclosures were necessary. SEBI suggested that such businesses reveal their key performance indicators (KPIs) during IPOs. Most start-ups anticipate income using statistical models such as gross merchandise value (GMV). Such KPIs are widely used by private equity and venture capital investors who invest in unlisted start-ups.

“The issuer company shall disclose all material KPIs that have been shared with any pre-IPO investor at any point of time during the three years prior to the IPO,” according to SEBI's discussion paper, which also states that the companies must publicise “Valuation of Issuer Company based on secondary sale / acquisition of shares (equity/convertible securities) excluding gifts, in the 18 months prior to the date of filing of the DRHP / RHP where either acquisition or sale is equal to or more than 5% of the fully diluted paid-up share capital of the issuer.”

To be clear, these new guidelines will only apply to enterprises that have not been profitable in the previous three years and plan to go public.

Listed below are a few IPOs that are anticipated to go public in March 2022:

LIC IPO

The Life Insurance Corporation of India's initial public offering (IPO) is the most anticipated of all time, with the government diluting at least 5% of the shares. The initial public offering (IPO) is scheduled for March.

OLA IPO

OLA intends to go public in the first half of 2022 with an IPO of around INR 15,000 crore. Other firm shareholders, such as SoftBank, Tiger Global, and Steadview Capital, will benefit from the IPO by being able to sell their shares or depart in order to pay dividends to shareholders.

DELHIVERY IPO

The new kid on the block in the delivery and logistics game, Delhivery, is preparing for an IPO with a target valuation of INR 7,460 crore. The company plans to issue additional shares worth up to INR 5,000 crores, with an INR 2,460 crore offer for sale. Existing shareholders should expect some part of their shareholdings to be diluted.

OYO IPO

The well-known OYO rooms and hotels are slated to go public in March. The hotel firm is looking for a funding round of INR 8,430 crores. In the IPO, fresh issues worth up to Rs 7,000 crores ($966 million) and an offer for sale worth up to INR 1,430 crores ($197 million) would be available in the IPO.

PHARMEASY IPO

PharmEasy, a pharmaceutical delivery app, will also go public shortly. In November 2021, the firm filed for an initial public offering (IPO). By issuing new shares, PharmEasy hopes to raise at least INR 6,250 crores.

BYJUS IPO

The educational learning and interactive app intends to go public shortly. The business intends to raise $400 million to $600 million.

SBI MUTUAL FUND IPO

The State Bank of India (SBI), India's largest bank and lender, is set to list its mutual fund growth in the near future. The company plans to sell 6% of its mutual fund assets, while Amundi plans to sell around 4% of its holdings.

NSE IPO

The country's main stock exchange, the National Stock Exchange of India, is exploring an initial public offering (IPO) of INR 10,000 crores. Among the company's significant shareholders are SBI, LIC, IFCI, IDBI Bank, Goldman Sachs, Stock Holding Corporation, Tiger Global, and Citigroup.

Among the companies anticipated to list in March or soon are Go Airlines (India) Limited, One Mobikwik Systems Limited, Keventer Agro Limited, Snapdeal Limited, and Utkarsh Small Finance Bank Limited.