Upcoming IPOs 2024: In 2023, the Indian primary markets faced a slow start but eventually saw overall success. Dalal Street witnessed more public issues than the previous year, although the funds raised through initial public offers (IPOs) were lower than in 2022.
A total of 57 issues entered the capital market in 2023, surpassing the 40 issues from the previous year. However, the total funds raised were 17% lower. Notably, the share of fresh capital raised in IPOs this year reached an eight-year high.
These issues experienced significant listing gains and benefited from strong retail participation. Looking ahead, the market is expected to remain positive, with upcoming issues worth ₹28,440 crore set to enter the public markets.
Upcoming IPOs 2024 in India
Check the top IPOs expected in 2024 as per exchange records, market reports, and industry buzz.
1. Ola Electric
Ola Electric, the electric vehicle (EV) division of Ola, is gearing up for a highly anticipated Initial Public Offering (IPO) in 2024. The company aims to secure funding in the range of $700 million to $800 million, potentially valuing the company between $7 billion and $8 billion.
While facing challenges such as safety concerns and customer service issues, Ola Electric has experienced a significant boost in revenue. This growth mirrors its quick transition from a ride-hailing platform to a prominent player in the EV manufacturing sector.
Ola Electric’s strategic focus on sustainable transportation solutions positions it favorably in a market increasingly embracing eco-friendly energy alternatives.
Also Read: Happy Forgings IPO Details, Date, GMP, Review, Price
2. Aakash (Byju’s Subsidiary)
Aakash, which was bought by Byju’s in 2021 for a whopping $950 million, is gearing up for its IPO around mid-2024. Since joining forces with Byju’s, Aakash’s earnings have tripled, aiming to hit ₹4,000 crore in revenue and ₹900 crore in EBITDA by the fiscal year 2023-24.
The test-prep market, where Aakash plays a crucial role, is anticipated to grow significantly, making the upcoming IPO an attractive opportunity for potential investors.
Nevertheless, investors are keeping a close eye on the IPO, especially in light of recent challenges faced by Byju’s, including issues with lenders, layoffs, and audit concerns.
3. PhonePe
PhonePe, a prominent player in India’s online payment arena, is considering an IPO between 2024 and 2025. With a recent injection of $200 million from Walmart, the company’s valuation has reached $12 billion.
Currently, PhonePe is actively raising $2 billion in funds, reflecting its strong growth across different digital payment sectors. This significant expansion and promising growth have heightened expectations for its upcoming IPO.
4. Oyo Rooms
Oyo Rooms’ initial public offering (IPO) has been highly anticipated but faced delays as the travel-booking platform aims to secure funds from the public to pay off a significant portion of its debt.
Following the initial IPO filing, the company submitted a revised draft red herring prospectus (DRHP) to the Securities and Exchange Board of India using a confidential pre-filing route. It is reported that the company reduced the size of its public listing by nearly half, targeting a range of $400-600 million. This amount is expected to be generated through a primary issuance of shares.
5. PharmEasy
PharmEasy is contemplating a potential public offering due to its strong performance. Owned by Tata, the company recently generated more than ₹3,950 crore through a rights issue and is currently experiencing positive EBITDA in Q1FY24.
To move forward with the rights issue, PharmEasy is waiting for approval from the Competition Commission of India (CCI). Upon approval, Ranjan Pai is expected to own approximately 15% of the company. The funds raised from the rights issue will be allocated towards reducing debt and supporting the company’s natural growth.
6. PayU India
PayU India is gearing up for its IPO around the second half of 2024, showcasing its readiness for public offering. As a Prosus-owned entity, PayU India specializes in financial services, including facilitating payments for merchants and providing consumer credit. Notably, the company achieved a revenue of $211 million from its Indian operations in the first half of the current fiscal year.
The impending IPO of PayU India holds significance within the fintech sector due to its notable growth in both payments and credit domains, coupled with its substantial market presence.
7. Swiggy
Swiggy, a key player in food delivery, is set to make its stock market debut in 2024. With a valuation of $10.7 billion, Swiggy leads the food delivery market in India. The upcoming IPO marks a crucial achievement for Swiggy, showcasing its substantial growth and strong market presence. If Swiggy goes public, it will be the second food delivery platform to do so, following its competitor Zomato.
8. MobiKwik
MobiKwik is partnering with DAM Capital Advisors and SBI Capital Markets to launch its IPO, with a goal of raising approximately $84 million.
Despite delaying its IPO previously, the company is now scheduled for a listing in 2024. As one of India’s major mobile wallets and buy now, pay later service providers, MobiKwik is contributing to the growing trend of small- and medium-sized companies opting for public offerings in India.
Points To Consider When Investing In IPOs In 2024
In 2024, successfully navigating the Indian IPOs scene requires a smart approach for potential investors. It’s essential to delve into thorough research, starting with a deep dive into the company’s financial health, growth potential, and market standing.
Here are the key aspects to keep in mind when considering investments in IPOs.
- Thorough Research:
- Conduct a detailed analysis of the company’s financial health, growth prospects, and market position.
- Evaluate the purpose of the IPOs and how the funds will be utilized to grasp the company’s strategic vision.
- Industry and Competition Insight:
- Understand the dynamics of the industry and the competitive landscape to gauge the potential success of the IPO.
- Scrutinize the track record and industry expertise of the management team for confidence in their leadership.
- Market Awareness:
- Stay informed about broader economic conditions and market trends to make well-informed investment decisions.
- Assess the grey market premium (GMP) for insights into market sentiment and expectations.
- Subscription Metrics Analysis:
- Examine IPO subscription metrics, such as oversubscription levels and category-wise allotment, to gauge demand.
- Review the prospectus, financial statements, and risk factors outlined by the company for a comprehensive understanding.
- Investment Strategy:
- Clearly define your investment horizon, risk tolerance, and financial goals before participating in an IPO.
- Follow the principle of diversification by spreading investments across sectors to mitigate risk.
- Stay Informed:
- Keep abreast of regulatory changes, shifts in market sentiment, and global economic developments.
- Stay vigilant for updates in the IPO landscape to ensure well-informed decision-making.
Successfully navigating the Indian IPO landscape in 2024 demands meticulous research, strategic planning, and a keen understanding of market dynamics.
Also Read: Doms IPO Allotment Date, Final Subscription Status
Upcoming IPOs 2024 in India FAQs
Q.1. How was the performance of the Indian IPOs market in 2023?
Ans. In 2023, the Indian IPO market had a slow start but eventually achieved overall success. Although there were more public issues than the previous year, the funds raised through IPOs were 17% lower than in 2022.
Q.2. What are the upcoming IPOs in India for 2024?
Ans. Some notable upcoming IPOs in 2024 include Ola Electric, Aakash (Byju’s Subsidiary), PhonePe, Oyo Rooms, PharmEasy, PayU India, Swiggy, and MobiKwik.
Q.3. What is the expected valuation for Ola Electric’s IPO?
Ans. Ola Electric is aiming for a valuation between $7 billion and $8 billion, with a funding target in the range of $700 million to $800 million.
Q.4. Why is Aakash’s IPO considered attractive for investors?
Ans. Aakash, acquired by Byju’s in 2021, has seen tripled earnings and aims to reach ₹4,000 crore in revenue and ₹900 crore in EBITDA by the fiscal year 2023-24. The anticipated growth in the test-prep market adds to its attractiveness.
Q.5. What challenges does Oyo Rooms face in its IPO journey?
Ans. Oyo Rooms faced delays in its IPO as it seeks funds to pay off a significant portion of its debt. The company submitted a revised draft with a reduced listing size targeting $400-600 million.
