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Aditya Goela, CFA

Aditya Goela, CFA

Co-Founder and Trainer at Goela School of Finance LLP | Chartered Financial Analyst® | Proprietary Trader | JoshTalk Speaker
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IPO MANIA – WHAT’S NEW?

Aditya Goela, CFA

Aditya Goela, CFA

Co-Founder and Trainer at Goela School of Finance LLP | Chartered Financial Analyst® | Proprietary Trader | JoshTalk Speaker
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Upcoming IPO’s in 2022

IPO Launch Goela
Initial public offering or IPO concept with Indian Currency on Isolated background

In the recent times, especially after 2020 IPO’s have gained popularity just like YouTube Shorts, all thanks to the crazy number of people applying for an IPO. If you are also interested in knowing about IPO’s or applying in the upcoming ones then you have just come at the right place.
In this blog, I will be discussing about the IPO’s of most popular brands, whose products you must have definitely used or heard of, which are yet to be listed in 2022.
So let’s start with the company which offers affordable and quality smartwatches, headphone stereos, travel chargers, etc. for its boAtheads. This company was founded in 2016 and has captured the market like a growing wildfire. Any guesses which company is it?
Yes. This company is boAt.

ABOUT BoAt and its IPO

Imagine Marketing Services Pvt. Ltd.(BoAt) is an Indian-based consumer electronics brand which was co-founded by Aman Gupta and Sameer Ashok Mehta. It filed a Draft Red Herring Prospectus(DRHP) with SEBI on 26th January, 2022 for an IPO of 2000 crores. This offer includes a 900cr. fresh issue of equity shares and an offer for sale amounting to Rs. 1,100 cr. as described in the DRHP. In the OFS of 1,100 cr. South Lake Investments would sell shares worth Rs.800 cr. and the founders will sell shares worth Rs.150 cr. each.

BoAt financials (as per DRHP) : –

IPO details : –
Objectives of raising funds : –
  1. To repay debt
  2. Increase marketing capabilities to create a wider consumer base by expanding into offline market segments and Tier 2+ cities and towns in India
  3. Diversifying its product portfolio

Now, let’s discuss about the company in whose hotels you have definitely stayed in or have seen its big red board while travelling across the city. One of the youngest billionaires and sharpest minds of India, Ritesh Agarwal founded the company in 2013. Here you can book vacation homes, corporate travel, co-working space, premium luxury hotels and hotels in various different segments.
Yes, the company I am taking about is OYO Rooms.

ABOUT OYO and its IPO

OYO Rooms(Oravel Stays Ltd.) is an Indian multinational hospitality chain of leased and franchised hotels, homes and living spaces. It has properties and rooms across 800 cities and 80 countries. It also wants to expand their business in Malaysia, UK, China and Indonesia. It is the 3rd most used app for online booking of hotels all over the world. It drafted the DRHP on 30th September 2020 with SEBI and is looking at a fresh issue of Rs. 7000cr. and an OFS of Rs. 1430cr.

OYO financials (as per DRHP) : –

IPO details : –
Objectives of raising funds : –
  1. Repayment or prepayment of debt undertaken by subsidiaries
  2. For inorganic and organic growth opportunities
  3. General corporate purposes

The next company is from a very fascinating sector whose stocks are currently on the list of every investor’s picks. Yeah, I am talking about the energy sector. We will be discussing about Bajaj Energy’s IPO. This company is one of the largest private sector thermal generation companies of India. It believes in the power of excellence, innovation and sustainability.

ABOUT Bajaj Energy and its IPO

Bajaj Energy financials (as per DRHP) : –

IPO details : –

Usually, these funds are raised for growth and expansion purposes or for the purpose of repayment of debt. However, any specific information as to why these funds are being are raised is not provided in the DRHP of Bajaj Energy.

You must have definitely travelled to destinations through this company’s aeroplanes. This company earlier known as Go Air, now rebranded as Go First is an Indian ultra-low cost airline based in Mumbai, Maharashtra. It holds 11% market share among its competitors like Indigo, SpiceJet, AirIndia, etc.

ABOUT Go First and its IPO

Go First is owned by the Indian business conglomerate Wadia Group. It commenced operations in November 2005 and operates a fleet of Airbus A320 aircraft in all economy configuration. It filed a Draft Red Herring Prospectus(DRHP) with SEBI on November 10, 2021 for an IPO of 3600 crores. This offer includes a entire 3600cr. of fresh issue of equity shares.

Go First financials (as per DRHP) : –

IPO details : –
Objectives of raising funds : –
  1. Debt clearance
  2. Lease and rental payment
  3. Fuel supply payment to IOC
  4. Internal purposes
Should you apply for the IPO?

The statement which I am going to make would startle you a lot – “It is advisable not to subscribe to any IPO.” Yes, you heard it right. The market is showing bearish sentiments. Seeing the current market situation, any IPO that will be listed recently will most probably be listed at a discount.
Also, a logical perception is that whenever the IPO’s are launched, they are extremely overpriced. The seller would always demand a premium price in the markets and we as buyers give it to the sellers. Usually, after that the prices of the stocks start falling.

Hence, it is advisable not to apply for the IPO’s.

See also: [What is an IPO?]

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