To give you an idea of how much money would be generated through IPOs in 2021, 63 companies raised Rs 1.19 trillion through IPOs in India. In 2022, 33 companies raised Rs 55,145.80 crore up to November.

In 2023, there will be a frenzy of Initial Public Offering (IPO) activity. According to Primedatabase, 89 firms would visit Dalal Street in 2023 to raise around Rs 1.4 trillion.

To give you an idea of how much money would be generated through IPOs in 2021, 63 companies raised Rs 1.19 trillion through IPOs in India. In 2022, 33 companies raised Rs 55,145.80 crore up to November.

Indeed, several fund managers have stated that IPOs have helped them produce alpha in recent years.

With markets reaching new highs all the time, alpha production has become a difficult undertaking. Anoop Bhaskar of IDFC MF said at Moneycontrol’s Mutual Fund Summit that “Markets have gotten quite flat in recent years. It is difficult to locate an HDFC Bank like we did in 2008 “. However, he noted that in recent years, alpha production has come via IPOs.

However, some investors appear to be hesitant to invest in IPOs, citing the fact that the shares of some newly listed businesses have been trading below their issue price.

“Many new-age companies took to the bourses at relatively steep valuations only to witness a quick correction and erosion of investor wealth as collateral damage. The regulator seems to be addressing the root causes of such an episode with a certain sense of urgency. The regulator has been rather vocal about its intent to introduce additional mandatory disclosures and take deliberate efforts to ensure the valuation process followed and final value determined is aligned with best practices and reasonably justifiable,” said Nirav Karkera, head of Fisdom.

He added, “Such incremental attention by the regulator has also been holding back many new-age startups from taking the listing route. This could be attributable to the increased probability of having to settle with a lower-than-expected valuation sheerly due to a difference in the regulator’s perspective on the subject”.

Because firms like Nykaa, Zomato, and PB Fintech have severely eroded shareholders’ wealth, the head of investment banking at a brokerage firm stated that the concerns will persist until and until the prices of recently listed companies returned to their IPO price levels.

Meanwhile, sources indicated that boAt postponed its public share sale plans and secured $60 million from private investors instead, amid persistent concerns about the unpredictable stock market and that Snapdeal has allegedly chosen to pull the plug on its IPO citing ‘prevailing market circumstances’. While Ola, which has proven profitable, may consider an IPO next year, no final decision has been made.

Furthermore, while nothing is official yet, the SoftBank Group-backed food delivery service Swiggy is aiming to submit offer paperwork with SEBI. According to estimates, Swiggy wants to raise $1 billion through an IPO in 2023.

Here are several IPOs that the market anticipates in 2023:

1. OYO

Oravel Stays, often known as OYO, filed its draught red herring prospectus (DRHP) in October 2021 and expected to undertake its initial public offering (IPO) in 2022. However, instability and unfavourable market sentiment pushed OYO to postpone its IPO, fearing that its valuation might suffer.

The hotel startup is now looking for SEBI approval to go public in 2023. The anticipated amount of the offering is Rs 8,430 crore.

2. Fabindia 

The prominent apparel firm Fabindia’s issue size is Rs 4,000 crore.

The company’s Managing Director told the Free Press Journal that the debut date would be determined after considering numerous aspects such as appropriate statutory permissions, stock market circumstances, comments from investors and intermediaries, and so on.

3. Housing Finance using Aadhar

Blackstone-backed Aadhar Housing Finance submitted its draught papers to SEBI on January 24, 2021, and received approval on May 5, 2022.

Its offering size is Rs 7,300 crore, making it the largest among the firms that have received SEBI approval to raise funds through an IPO up to December 12.

4. Yatra Online

Yatra Online, with an expected issue amount of Rs 750 crore, is one of the most recent enterprises to receive capital market regulator approval.

With around 700 big corporate clients and over 46,000 registered SME clients, the firm is India’s top corporate travel service provider.

5. Mankind Pharmaceuticals

The business’s IPO is expected to raise Rs 5,500 crore, making it one of the largest ever public offerings by a domestic pharmaceutical company.

Apart from branded generic pharmaceuticals, the company’s well-known products include Prega-News pregnancy testing kits, Manforce condoms, Gas-O-Fast ayurvedic antacids, and AcneStar acne treatment medication.