IPO Rush: Will 2021 Be The Year Of Unicorns?

India is quick rising because the hotbed of unicorns i.e. firms which have surpassed valuation of $1 billion. The nation’s unicorn tally has already touched the 50 mark and consists of family names similar to Flipkart, Paytm, Zomato and Ola, with as many as 16 start-ups buying unicorn standing within the yr 2021 alone. But it’s only now that the digital financial system firms are taking the general public route, with the upcoming Zomato IPO poised to herald the age of mega Indian startup IPOs.

Zomato, the restaurant aggregator and meals supply enterprise’s public subject will open on July 14. The firm is seeking to increase Rs 93.75 billion (about $1.25 billion) by a recent subject of shares and a proposal on the market by its guardian firm, Info Edge. Zomato’s Rs 9,375 crore preliminary public providing (IPO) will encompass a recent subject of Rs 9,000 crore and a proposal on the market of Rs 375 crore by the promoter, Info Edge India. 

The Paytm IPO is anticipated to be subsequent in line. The cell funds and commerce platform is planning an IPO of about Rs 166 billion ($2.23 billion), based on reviews. Flipkart and Ola are the opposite Indian unicorns which can be prone to faucet the first markets for funds on this calendar yr.

Mobikwik can be set to take the IPO route though the digital cost firm is just not a unicorn within the standard sense of the phrase, with its valuation positioned at $70 million. The digital funds agency backed by Sequoia Capital and Bajaj Finance, has filed for an preliminary public providing (IPO) price as much as Rs 1,900 crore with the markets regulator Sebi on Monday.

Many different non-unicorn firms have additionally lined as much as go public. A complete of 30 firms have filed IPO papers to lift Rs 55,000 crore and at the very least 10-15 firms have initiated the method of going public.

An preliminary public providing (IPO) is a course of whereby a personal firm raises cash by providing shares to the general public, thereby making a transition right into a publicly listed firm. Some IPOs can also embody a proposal on the market (OFS) by present traders. However, in such instances, the cash will go to the involved traders and the issuing firm is not going to obtain any of the IPO proceeds.

Companies increase funds by IPOs for quite a lot of causes similar to growth, clearing debt and funding company bills. And on-line supply start-ups similar to Paytm, MobiKwik and Zomato have an added incentive for fund elevating because the covid-19 pandemic has spurred unprecedented development in demand for on-line companies.