Top 6 Anticipated IPOs To Set 2024 Ablaze

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  • 12 Jan 2024
Top 6 Anticipated IPOs To Set 2024 Ablaze

Kotak Insights | Date 12/01/2024

Over 490 billion rupees.

That’s the amount which was raised by a total of 57 Indian companies via mainboard initial public offerings (IPOs) in 2023.

Of these, 50 IPOs were oversubscribed.

If this doesn't scream IPO frenzy, what does?

It begs the question – Is this frenzy about to continue in 2024? And if yes, which are the most awaited IPOs market participants are excited for.

Let’s take a closer look in the IPO markets to answer this.

The recent surge in IPO activity mirrors the trend of 2021 when companies raised a staggering Rs 1.1 trillion through initial public offerings.

And the resurgence in IPO enthusiasm in 2023 was seen on the back of several factors, including increased investor appetite and Dalal Street's record run.

Looking ahead, this IPO rush is set to continue its momentum in 2024, with many mainline and SME public issues in the pipeline.

It is because 2024 promises to keep the adrenaline flowing with homegrown unicorns seizing the opportunity presented by a robust economy, heightened liquidity, and a thirst for listing gains.

Here’s a look at 6 of the most anticipated IPOs lined up for 2024.

1. MobiKwik: Fuelling Financial Dreams

Imagine a one-stop shop for all things digital finance, catering to the underserved masses in tier 2 and tier 3 cities. That's MobiKwik for you.

With over 140 million registered users, 3.7 million ecommerce, physical retailer and biller partners, and a revenue of Rs 560 crore in FY23, MobiKwik is not just facilitating payments; it's scripting a financial revolution.

Positioned as a digital bank, MobiKwik's focus on vernacular language gives it an edge in the untapped market.

The company's use of big data analytics and machine learning ensures continuous improvement, making it a potent player in India's projected US$350 billion digital payments market by 2030.

The company has recently filed a fresh draft red herring prospectus (DRHP) to raise Rs 700 crore through a fresh issue of shares.

2. Ola Electric: Revolutionising Green Mobility

Kicking off our electrifying journey is Ola Electric.

Ola Electric, the market leader in electric two-wheeler segment, with a little over 156,000 electric scooters sold in FY23, is gearing up for one of the most anticipated IPOs in recent Indian history.

The company is planning for its IPO in 2024 by issuing new equity shares worth up to Rs 5,500 crore, along with a sale offer (OFS) of 95,191,195 existing shares, each with a nominal value of ₹10.

The company boasts of flagship 2-wheeler models like the S1 and S1 Pro and it is redefining the streets with eco-friendly mobility.

It reported a revenue of Rs 2,630.93 crore in the financial year 2023 and a net loss of Rs 1,427 crore.

The company's next move includes unveiling its current electric scooter line-up of three models - S1 Pro Gen 2, S1 Air and the S1 X lineup. It is also planning to launch its first electric car in 2024, signaling a shift in gears towards a greener future.

In addition, Ola Electric is setting up a Gigafactory in Tamil Nadu through its subsidiary Ola Cell Technologies. The factory is expected to start production of cells by March 2024 with a capacity of 1.4 GWh.

3. FirstCry: Crafting Childhood Experiences

In the world of baby and kids' retail, FirstCry is the undisputed pioneer.

Boasting over 400 brick-and-mortar stores and a robust online platform, it's more than just a shopping destination; it's an experience.

In FY23, FirstCry witnessed an impressive 135% jump in its revenue at Rs 5,633 crore. However, the bottomline painted a different picture with a net loss of Rs 486 crore in FY23 due to increased expenses.

The parent company – Brainbees Solutions – has filed an IPO application, eyeing a valuation of $3.5 to $3.75 billion, as per multiple reports.

The company’s seamless integration of online and offline stores, powered by machine learning, could set it on the path to dominate India's estimated US$15 billion baby and kids' market by 2025.

4. PhonePe: Beyond Digital Payments

Next up in our financial spotlight is PhonePe.

PhonePe isn't just a digital payments platform; it's the financial heartbeat of Bengaluru, Karnataka, India.

With a registered user base of around 50 crore and 23.5 crore monthly active users (as of November, 2023), PhonePe dominates as a payment option in most of the pin codes across the nation.

The company is anticipating an IPO in 2024-25, backed by a $200 million Walmart investment and a $2 billion fund raise.

The company’s future plans involve a robust expansion of its merchant network over the next five years, setting the stage for a financial spectacle in the years to come.

5. Swiggy: Food Delivery Milestones

Born in Bangalore in 2014, Swiggy has evolved into more than just a food delivery platform; it's a culinary maestro serving 500+ Indian cities.

With expansions into groceries and packages through Swiggy Instamart and Genie, Swiggy commands around 46% market share in food delivery.

Marching to the beat of profitability, Swiggy achieved a milestone by turning a profit in the March quarter of FY23 in its food delivery business.

The company is set to sizzle in the IPO scene in 2024, which aims to fortify Swiggy's war chest, fueling its growth and expansion endeavors.

6. Emcure Pharma: Scripting Global Healthcare Narratives

Emcure Pharma isn't just a pharmaceutical company; it's a global player with a presence in over 70 locations worldwide.

With a diverse product range and a strategic focus on therapeutic areas with low generic penetration, Emcure Pharma stands tall in India's pharmaceutical landscape.

As the company expands into high-growth areas like oncology and diabetic care, it is poised for significant growth in a market set to reach new heights.

The Bain Capital-backed pharma company has filed fresh preliminary papers to raise funds via an IPO in 2024. As per the DRHP, the IPO will comprise of a fresh issuance of equity shares worth Rs 800 crore and an OFS of 1.36 crore equity shares.

As we gaze into the IPO crystal ball for 2024, cautious optimism is the key theme.

The abovementioned IPOs, among the other top IPOs lined up for 2024, represent the vibrant spectrum of India's economy, each armed with unique growth strategies.

The digitalization wave, government initiatives, and market trends are favorable winds for these IPOs. However, the upcoming elections could inject a dash of uncertainty, and market dynamics and company performances may sway in the wake of policy changes.

It’ll be exciting to see how these IPOs perform on the listing day on the bourses.

Also, hold on to your hats because while the potential returns from these IPOs could be alluring, the IPO rollercoaster comes with risks.

Thorough research, meticulous planning, and informed decision-making will be your compass in this thrilling ride.

As we have highlighted in the past, the inherent risk in any IPO lies in its valuations and one should look out for it before making a decision to subscribe to any offering.

In the realm of IPOs, 2024 is not just a year; it's an adventure waiting to unfold. Embrace it wisely!

Which IPOs are you looking forward to in 2024? Let us know in the comments!

And for more market insights, join our Research Team experts as they discuss Q3FY24 market expectations, triggers, and top stocks in this latest webinar: Expectations & Triggers for Q3FY24

We’ll be back with another exciting story next week!

Until next time,

Happy learning!


Sources: Kotak Securities, Economic Times, Company DRHP, Livemint, Moneycontrol

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

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