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These two companies will soon launch their IPO (Public Release). But…

These two companies will soon launch their IPO (Public Release).  But...

Is there a resurgence in the IPO markets in India?

This morning, as I was on my way to the office, I turned a corner and saw a big red billboard on the roof of a hotel.

I had to wait at a traffic signal, and that’s when I saw the same billboard on top of five other hotels.

All tables have a mention of them, ‘OYO’. Something that started as a part-time activity has grown into a full-fledged business empire.

Ritesh Agarwal came up with the idea for the OYO (On Your Own) Room when he was 19 years old, and at 19, I’m still wondering what professional course to pursue.

Agarwal became India’s youngest billionaire. He has always been an inspiration to me, and I love the business idea of ​​OYO.

While going through some financial news, I came across some articles that mentioned that the company will launch soon. initial public offering (IPO).

After a lackluster wait, the rest of this year will see some big names launch their initial public offerings.

In addition to OYO, there is another company – Inox Green Energy – a business that I find interesting and it is also about to IPO.

Let’s take a detailed look at the IPO details of both these companies.

IPO of Inox Green Energy

Inox Wind CEO Kailash Lal Tarachandani said in a recent interview that Inox is planning to launch Inox Green Energy’s IPO in the next 35-40 days.

This means that Inox Wind could launch with an IPO in October 2022.

Inox Green Energy is a subsidiary of Inox Wind. It is engaged in providing long-term operation and maintenance (O&M) services for wind farm projects, specifically for wind turbine generators (WTG) and general infrastructures on sites. wind farms, supporting the relocation of power from those WTGs.

The CEO said that Inox Green Energy has seen an outstanding growth of 30-40% year on year. The company is currently operating with a volume of Rs 1.6 billion. In the next 3-4 years, this number will increase to Rs 4-5 billion.

The company submitted a draft red herring prospectus (DRHP) in June 2022. This is not the first DRHP submitted by the company. It filed a DRHP even in February 2022 but it withdrew without giving a reason.

According to the final submitted DRHP, the proposal will be Rs 7.4 billion.

50% of the total offer will consist of new shares and the remaining 50% will be on an offering basis (OFS).

Last week, the company received approval from the market regulator to conduct an IPO.

Investors are waiting with high breath as this IPO could mean diversifying into the renewable energy segment for them.

And we all know the market’s deep love for the term ‘green energy’.

So this could be an interesting IPO to watch.

OYO IPO Room

OYO Rooms, also known as OYO Hotels & Homes, is an Indian multinational hotel chain of hotels, residences and rental and franchised living spaces.

Founded in 2012, OYO originally consisted mainly of budget hotels. As of January 2020, it has more than 43,000 hotels and 1 million rooms across 800 cities in 80 countries.

OYO filed its DRHP in October 2021. However, shortly after that, the major market correction started and due to that gray cloud hovering over the Indian IPO market. Therefore OYO did not go further with the offer.

But now the scenario has changed. OYO planned to reap the benefits of this changed scenario, and on September 19, 2022, OYO submitted an addendum to its existing DRHP.

According to DRHP, the IPO is expected to be Rs 84.3 billion. Of the total offer, shares worth Rs 70 billion will be new equity shares and shares worth Rs 14.3 billion will be on an OFS basis.

In the submitted addendum, the company reports total revenue of Rs 14.6 billion. For the first time, OYO reports positive EBITDA. It reported an EBITDA of Rs 70 million. The company’s losses have narrowed, but this is the first time the company has reported a profit.

However, the company reported a net loss of Rs 4.1 billion.

The total booking value for each hotel for the quarter ending June 2022 was Rs 3.3 lakh. Year on year, it has grown 47%.

The company has yet to receive a response from the regulator.

This could be another interesting IPO to watch as the scenario for the hospitality and hospitality sector has changed.

Hotel stocks are booming and the majority of companies reported good results in the first quarter.

Currently, both companies have big plans to list shares but is this the right time? Especially, considering the recent turbulence in the IPO market?

This could damage Buzz IPO

It seems that Virat Kohli’s bad luck is not limited to cricket. It has also followed him in the financial markets. Earlier this week, the Go Digit General IPO backed by Virat Kohli was followed by the market regulator.

The proposed IPO offering is expected to raise Rs 12.5 billion through new share issuance and the rest will be raised by selling 109.4 million shares by promoters and shareholders. exist.

This move by the regulator raises questions about companies’ IPO decisions in the current market context.

The IPO of the newly listed Tamilnad Mercantile Bank opened with huge discounts and the share price continued to fall.

Investors are trying to regain confidence in India’s IPO markets but Tamilnad Mercantile Bank’s discount listing and market regulator’s block on Go Digit Insurance’s IPO has hampered operations. IPOs.

India’s IPO market is reviving, but…

India’s IPO market is already under pressure because of market volatility. The market has corrected and investors are still cautious.

Investors are still reeling from Paytm and Zomato losses. Another insult is that the LIC stock price is falling. Investors signed up in bulk for LIC’s massive IPO.

When these companies go public, investors think these will be the next big multibagger stocks. But unfortunately, that didn’t happen. The stocks have been severely undervalued on exchanges.

Now, investors are very wary of losing companies. No matter how good a business is, investors may not trust it if it can’t show its earning potential.

Companies understand this well. Investors raised many red flags before investing in the IPO. As a result, many companies are holding off on IPOs even after their IPO has been approved.

Currently, the company with urgent financial need is choosing private funding because of the uncertain market.

For example, leading pharmacist PharmEasy withdrew its offer, citing market conditions and strategic issues. The company said it will raise funds through the release of rights.

On the other hand, Q1 business results of companies showed optimism as many companies reported good quarterly business results.

Additionally, the broader markets have traded actively for the past month. Investors are back to searching best small cap stocks to buy and the best midcaps before the festive season begins.

All of this has boosted investor confidence and, as a result, they also look forward to new companies.

But how IPO activity will play out for the rest of this year is yet to be seen.

For more see Upcoming IPO on our website.

Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such.

This article is provided by Equitymaster.com.

(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)

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