IPOs in 2024: Ola Electric, PhonePe, Swiggy, FirstCry and others
Despite a sluggish start, the number of public issues on Dalal Street saw an uptick in 2023. A total of 57 public issues were launched, raising Rs. 49,437 crore. Looking ahead, the market is expected to maintain its optimistic trajectory as a wave of IPOs is set to hit the Indian market in 2024. Companies like Ola Electric and FirstCry are preparing for their big debut, with issuances totaling Rs. 28,440 crore set to enter the public markets.
Ola Electric
The IPO of Ola Electric, the electric vehicle arm of Ola, is picking up interest from all corners. The company has just bagged the crucial PLI certification for EVs. The Bhavish Aggarwal-led company aims to raise between $700-$800 million in its IPO, giving it a valuation of $7-$8 billion. Despite dealing with safety concerns and customer service issues, the company has seen impressive revenue growth, evolving from a ride-hailing service to a major player in the electric vehicle market.
FirstCry
Omnichannel retailer FirstCry's parent company Brainbees Solution has filed papers for its initial public offering (IPO) with market regulator Securities and Exchange Board of India (SEBI). The size of the IPO is currently undisclosed, but it encompasses a new share offering valued at a maximum of Rs. 1,816 crore. The offer for sale (OFS) segment involves the divestment of up to 54.4 million shares by current investors like SoftBank, Mahindra & Mahindra, and TPG.
Aakash (BYJU'S subsidiary)
Aakash, which was acquired by BYJU'S in 2021, is reportedly gearing up to launch its IPO by mid-2024. Following the acquisition, Aakash has experienced an impressive threefold increase in revenue, with projections pointing toward a revenue goal of Rs. 4,000 crore and Rs. 900 crore in EBITDA by the fiscal year 2023-24. Aakash has a notable presence in the test-prep market. The company is poised for substantial growth, presenting a compelling opportunity for potential investors in the upcoming IPO.
PhonePe
PhonePe is a leading player in India's digital payment landscape. The firm is eyeing its IPO within the 2024-2025 timeframe. The company is fueled by a $200 million investment from Walmart that assessed its value at $12 billion. It is presently engaged in securing a significant $2 billion fund. Given its strategic expansion across various aspects of digital payments and services and a strong growth trajectory, the excitement surrounding PhonePe's upcoming IPO is high.
PharmEasy
PharmEasy is considering the possibility of going public, driven by its robust performance. Under Tata's ownership, it recently raised Rs. 3,500 crore through a successful rights issue. Ranjan Pai, chairman of Manipal Education and Medical Group, invested Rs. 1,300 crore in the rights issue. The funds raised from the rights issue will be allocated for debt reduction and facilitating organic growth. PharmEasy became EBITDA positive in Q1 FY24, sustaining a favorable trend.
Swiggy
Swiggy is getting ready to step onto the public stage in 2024. With a hefty valuation of $10.7 billion, the company has made its mark in India's food delivery scene. The upcoming IPO for Swiggy is considered a significant milestone, highlighting the company's expansion. Swiggy is following in the footsteps of its rival Zomato, making it the second food delivery service to go public in India.
MobiKwik
MobiKwik is reportedly joining forces with DAM Capital Advisors and SBI Capital Markets to streamline its IPO, aiming to secure around $84 million. Although it had previously deferred its IPO plans, the company is now preparing for a listing in 2024. As a known player in India's mobile wallet and buy now, pay later sectors, MobiKwik exemplifies the growing trend among various small- and medium-sized enterprises choosing to go public in the Indian market.
