What are the Upcoming IPOs in 2020?
The market always responds better for positive news or new development in the market. An IPO is one such event, which excites the market participant. An IPO is a mechanism by which a privately held company begins selling stocks to an outsider investor. It is the birth of a company in its public form. A private company that is unable to self-finance through operating cash flow, then there are a few alternatives in–front of the management and the firm’s ownership can utilize those alternatives to provide that capital. It may include debt, private investment or public investment through an IPO.
Last year, saw a few new names listed on the Dalal Street such as IRCTC, CSB Bank, Indian Mart, Rail Vikas Nigam, and Neogen Chemicals were the key IPOs that made headlines. According to economic times, this year too, Indian companies may look for Rs 40,000 to 50,000 crores through IPO route. It would be nearly four times higher compared with the Rs 12,362 crores raised by 16 companies in 2019 on the main exchanged board. Let’s look at some of the prominent IPOs that may hit this year:
- SBI Cards and Payment:
SBI Cards and Payments is the subsidiary of the State Bank of India, one of the largest public sector companies. The expected issue size is around Rs 8500 crore and Rs 9,500 crore. According to the proposal given to the SEBI, it will issue fresh equity shares aggregating Rs 500 Crore and an offer for sale by promoter SBI and by-investor CA Rover Holding.
- Burger King:
It is one of the big names in quick–service restaurants, fast food chains. With this IPO, it’s major private equity player Everstone Capital is likely to make a partial exit from the quick–service restaurant chain.
- NSE (National Stock Exchange):
The country’s largest exchange is likely to come up with its IPO this year. It’s listing plans were stalled due to litigation against the exchange in the Co-location matter. It aims to raise about Rs 10,000 crore from the IPO, which would result in existing promoters selling 22-24% of their stakes. It could seek a total valuation of Rs 44,000- Rs, 46,000 crores in the share sale.
- IREDA (Integrated Renewable Energy Development Authority):
It is a 100% government–owned entity, received a final nod for an IPO from SEBI in October last year. It is eyeing Rs 700 to Rs 750 crore after selling its stake in IREDA. The government is eyeing Rs 700 crore to Rs 750 crore after selling its stake in IREDA. According to a recent current proposal, it will issue fresh 13.90 crore shares, increasing the paid-up share capital of the company from Rs 784 crore to Rs 923 core.
- Ease My Trip:
It is an online travel company which is founded by Nishant Pitti and Ritanti Pitti. The company filed draft papers with capital markets regulator SEBI in December last year to float a Rs 510 crore IPO.
- UTI AMC:
It is one of India’s oldest mutual funds. This year, it’s quite likely that UTI AMC will sell up to 8.25 percent stake via IPO route this year. The main public issue will mainly consist of a sale by shareholders including State Bank of India, Bank of Baroda, LIC, Punjab National Bank and T Rowe Price. The first three shareholders will sell 10,459,949 shares each with two others that will offload 3,803,617 shares each.
(Source: Economic Times)
CAMS (Computer Age Management Service):
It is one of India’s biggest registrar and transfer agents (RTA) serving various mutual funds in India. According to recent Draft Red Herring Prospectus (DRHP) presented to market regulator SEBI, the sources estimate the IPO size to be anywhere between Rs 1,500-1,600 crore. The IPO will be an offer for sale of 1,21,64,400 equity shares of face value Rs 10 each.
To get the latest updates about the IPO dates, it’s better if one keeps looking at the market news daily. It will also provide substantive reports about the upcoming IPO in the coming quarter. A smart investor always tries to maximize the benefit of such opportunities in the stock market.
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