Upcoming IPOs in January 2023

Upcoming IPOs are an attractive investment avenue as there is a higher chance that a company getting a new rush of capital will likely grow and consequently appreciate in share value. Thus they are a great way to make both short term and long term profits.

However, before you invest in any of the upcoming IPOs, you should be aware of the risks related to an IPO. For example, companies with upcoming IPOs do not have a clear trajectory of share prices by which you can assess its future share price growth using technical analysis. This means the trader/investor has to rely solely on the fundamentals of the company as mentioned by the DRHP and other online sources.

Therefore, try checking out the basic details of upcoming IPOs beforehand in them in order to take note of –

1. The demand and supply of money for IPO investment – For example, if a very attractive company is announcing a large IPO issue, then that might mean that a lot of capital will move away in its direction – other IPOs might then be available at a  lower price.
2. Basic stock details and company fundamentals – This will allow the investor to judge the business model and financial sustainability of the company. The investor will also realise whether too many shares are being offloaded by the major (and thus more informed) shareholders.
3. IPO trends in order to assess economic and market conditions – If the IPOs are failing to gauge interest e.g. they are constantly delaying their release or refusing to announce dates, then that means the economic situation is not conducive to make new bullish investments.

With this in mind, let us check out the upcoming IPOs about to be issued in January 2023.

List of new IPOs in January 2023

Gold Plus 

It is the second largest float glass manufacturer in India – it also has a large market share in value-added glass and clear glass manufacturing. It is issuing the IPO in order to pay for its market borrowings and working capital.

The company  is unloading an Offer of Sale of 12,826,224 shares along with fresh issue of ₹300 cr.

Aadhar Housing Finance

The company provides mortgage-related loans to low income households from semi-rural and rural India.

The company is offering a fresh issue of  ₹15,000 million and an offer of sale of ₹5,800 cr – the aggregate amount standing up to a total of ₹7,300 cr.

Hexagon Nutrition IPO

The company is focused on adult nutrition, clinical nutrition, paediatric nutrition, weight management nutrition etc. The company is issuing the IPO in order to pay off the debts of its subsidiaries, gather working capital and capital expenditure for its subsidiaries.

The company is going for a fresh issue of ₹100 cr and an offer of sale of 30,113,918 shares.

Capillary Technologies India

The company provides services in AI-based SaaS products and solutions. It has announced the IPO in order to repay its debts, invest in product development and R&D as well as strategic investments and acquisitions.

The company is giving out a fresh issue of ₹200 cr and an offer of sale of around ₹650 cr.

Keventer Agro

It is an FMCG firm headquartered in Kolkata that engages in packaged dairy and fresh food products – it operates across urban, semi-urban and rural areas. The reasons behind the IPO issue includes capital expenditure and repayment of borrowings.

The offer consists of a fresh issuance of ₹350 cr and an offer for sale of 10,767,664 shares.

Capital Small Finance Bank

Capital Small Finance Bank is one of the leading small finance banks. Capital Small Finance Bank Limited IPO combines ₹450 cr in fresh equities and 3,840,087 equity shares from selling shareholders. 

The primary objective behind the IPO is to pay for advertising and marketing fees.

Sresta Natural Bioproducts

It is engaged in the business of buying, processing, producing, selling, and developing organic food products – sales come from not only India but also the USA and other countries.  It provides a wide range of packaged food, drinks, spices and edible oils. The company performs cultivation on the largest area of land for organic farming among B2C organic food firms in India.

The initial public offering (IPO) consists of a fresh issue of equity shares worth up to ₹50 cr and an offer-for-sale by the selling shareholders of up to 70.30 lakh equity shares.

Ola cabs

It is one of the largest online cab service platforms in the world, operating in over 250 cities across the UK, Australia, New Zealand and India. It offers a variety of vehicles such as cabs, metered taxis, auto-rickshaws and bikes. The company enjoys a large customer base with over 1.5 million driver-partners.

However, the online cab-booking industry itself has been suffering from a shrinking pool of drivers, especially in metro cities in the post-COVID phase and Ola may require further financial innovations to overcome the slump and compete against newcomers. 

Droom Technology

Droom is a technology and data science-driven online marketplace that sells and buys used and new automobiles. It enjoys over 65% of the market share of automobile transactions online.

The Droom technology IPO consists of an offer for sale worth ₹1,000 crores and a fresh issue of shares amounting to ₹2,000 crores. The objective here is to raise capital for organic and inorganic growth initiatives.

One Mobikwik Systems

Mobikwik started out as a mobile wallet to allow easier payment of utility bills. Today it allows P2P payments via UPI for a range of transactions such as e-commerce, food delivery, petrol pump transactions etc.

The total issue size of the One Mobikwik IPO is around ₹1,900 cr.

Skanray Technologies 

The company is involved in designing, manufacturing, developing, and quality assurance of modern medical equipment. The IPO comprises fresh issues of ₹400 cr and an offer for sales of up to 14,106,347 shares.

The money raised through the Skanray IPO will be used to fund working capital requirements and promote inorganic growth.

Gemini Edibles and Fats

The company manufactures, distributes and brands edible oils and speciality fats in India. Their sunflower oil is marketed under the ‘Freedom’ brand and they are among the top two companies by market share in the branded sunflower oil category in India as of FY21.

The company plans to raise around ₹2500 cr solely through offer for sale.

Ixigo

The company assists Indian travellers in managing, booking and planning their tours across hotels, buses, air and rail. It does so by using data science and AI-based innovations. 

The offering will comprise ₹850 cr as an OFS (offer for sale) and ₹750 cr as a fresh issue of equity shares. The company aims to use this money to conduct organic and inorganic growth initiatives.

Other major IPOs

Apart from the IPOs mentioned above, there are a few major IPOs that we should take account of. 

Oravel Stays (OYO)

It is an online room-booking app, especially for short-stay accommodations with customers across 35 countries.

However, due to the COVID pandemic, the company had initially seen a fall in its revenue – but the situation is changing as it saw a 20% growth in its Year-on-year revenue in the last year. Its losses, too, have narrowed from ₹ 3,900 cr in 2021 to ₹ 1,900 cr in 2022.

It plans to raise ₹ 8430 cr of which ₹ 7000 cr will be fresh issues and the rest will be offer for sale by existing investors

Byju’s

It is a leading edtech platform with over 50 million registered students and over 3.5 million paid subscriptions.Alongside growing its user base, the company has also acquired major brands such as Osmo, Epic and Aakash educational services.

Its revenue has grown at a CAGR of 21.2% in the last 3 years, with a major jump from ₹ 2280 cr in 2021 to ₹ 10,000 cr in FY 2022.

It is now planning for an IPO of 1 bn USD in order to expand its tutoring arm Aakash educational services and has already raised around ₹ 44k cr, including from BlackRock and Tiger Global.

Swiggy

The popular online food delivery brand has partnership with over 1.5 lakh restaurants with 2.6 lakh delivery executives. It is also expanding into groceries and package delivery with Instasmart and Genie and has acquired Dineout, a dining out platform. 

In the last 3 years, the company’s revenues have grown at a CAGR of 25.4% while its losses have narrowed. It now plans to raise around $ 1 billion in order to increase its consumer base to 100 million and undertake technological innovations.

Go First

It is a ultra-low-cost carrier company owned by the Wadia Group, famed for the brands Bombay Dyeing and Britannia Company. Go First conducts both domestic and international flights with a fleet of 57 aircraft and has 94 more on the way. In the last 3 years, its revenues have increased at a CAGR of 16.4%.

However, the company has been facing losses due to its losses emanating from the rising fuel costs and COVID-induced slump in demand. Its previous DRHP expired, requiring the company to re-file for its IPO.

Through this IPO, the company wishes to raise around ₹ 3,600 cr in order to pay off its debt obligations and finance its post-COVID operations.

Mamaearth

It is a natural beauty and personal care company that has operations across India, the Middle East and South East Asia. In the last three years, its revenue has grown at a CAGR of 105%, turning the company profitable in 2022 (with a profit of ₹ 19.8 cr).

Its parent company, Honasa Consumer, has a track record of acquiring and developing other successful brands as well like Dr. Sheth’s, The Derma Co. BBlunt etc.

It plans to raise ₹ 2,439 cr through its IPO to expand its offline stores network across the country. It has already raise ₹ 907 cr through funding from Sequoia India, Fireside Ventures and Stellaris Ventures.

Conclusion

If you are interested in investing in any of the above upcoming IPOs but do not have a demat account, try to open demat account today with India’s trusted online broker!

FAQs

Q1. What is an IPO?

Ans. The word IPO stands for Initial Public Offering – when a company that does not have any publicly listed shares chooses to open its shares up on a stock exchange, it is said to be providing an IPO. 

Q2. What is an upcoming IPO? Where can I find

Ans. Upcoming IPO is a term that describes companies that have filed drafts and received SEBI’s approval.  

Q3. Where can I find upcoming IPOs?

Ans. Individuals can search online to find details on upcoming IPOs through various websites, including the websites of the companies themselves as well as SEBI. In Angel One, we release a list of forthcoming IPOs before each month, which you can also refer to.

Q4. Where to find IPO date?

Ans. You can find a list of upcoming IPOs on Angel One’s website, where you can check all relevant details regarding the IPO, including IPO size, opening and closing dates, allotment date, company information and more. 

Q5. Should I invest in IPOs?

Ans. IPOs are an excellent tool to make investments in volatile equities that have the potential for high returns both in the short and long run.

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and not recommendatory.