Initial Public Offering (IPO) is the process of private companies going public to raise capital from public investors. In layman’s terms, private companies’ shares are traded to the public. Individuals can consider investing in IPOs as it gives them entry to the foundation of a private company with a high growth rate. Experts believe that investing in IPOs can be a lucrative consideration over time. Further, the benefits can be used for retirement planning or investing in property. The Indian IPO market is growing; in 2020, over Rs, 25,000 crores were raised by Indian IPOs.
Here’s a list of 11 companies across different sectors from India and the United States who went public in 2021 (up until April):
Founded in Thrissur, 1993, Kalyan Jewellers is an Indian jewelry chain with over 100 showrooms spread across 21 states and union territories. The pan-India jewelry company has even established an international presence in the middle-east as of December 2020.
Kalyan Jewellers opened their IPO on March 16, 2021, Rs 87 per equity share, however, their market debut was disappointing, and the stock price decreased by 15 percent, i.e., Rs 73.95 on NSE and Rs 73.90 on BSE on March 26, 2021. Reportedly, Kalyan Jewellers raised Rs 1,175 crores through its IPO.
Easy Trip Planners (EaseMyTrip)
Founded in 2008 and headquartered in New Delhi, EaseMyTrip is an online travel company, a platform to book hotels, flights, trains, buses, travel packages, etc. India’s second-largest online travel agency earn their revenue of up to 2,400 crores INR. EaseMyTrip opened its public offering on March 8, 2021, at Rs 187 per equity, and closed the IPO on March 10, 2021. The online travel company got listed at Rs 212.25 on NSE and Rs 206.00 on BSE. However, the industry experts considered it to be the worst IPO listing
Home First Finance Company
Founded in 2010, previously based in Gujarat and Tamil Nadu, Home First Finance Company (HFFC) is now a Mumbai-based “young” housing finance organization providing affordable services to the middle and low-income groups. Their simple motto is to offer housing finance with the help of technology and personalization. HFFC opened its IPO subscription on January 21, 2021, and closed it on January 25, 2021, at Rs 518 and Rs 612.15, respectively. The finance company saw a positive IPO arc with an 18.18 percent rise in the stock price.
Indian Railway Finance Corporation (IRFC)
Founded in 1986, based in New Delhi, IRFC is the financial sector of Indian railways, which earn a revenue of 13,823.45 crores INR (US$1.9 billion, 2020). The First IPO of the year 2021 opened public offering at Rs 26 per share and closed at Rs 24.90 on NSE on January 29, 2021. IRFC expected the numbers on similar lines as per the market dipping market standards.
Founded in 2000, based in Pune, Indigo Paints is the one-stop solution for all your painting needs. What started as a modest cement paints manufacturing company has expanded to more services like Exterior Emulsions, Interior Emulsions, Distempers, Primers, etc. The company opened up for public offering between January 20 to January 22, 2021, at a stock price of Rs 1,490 per share, and the company gained benefits with a 75 percent raise, sling the price at Rs 2,607.5 per share on the BSE.
Founded in 2012 with revenue at 29.35 crores USD (2020), Coursera Inc. is an enormous American online course platform that provides free and paid courses across several streams for people worldwide. Headquartered in California, the biggest online learning course provider opened to a public offering on March 31, 2021, at $33 and earned $45 per equity stock on its first trading day, 36 percent above the original IPO price. So far, Coursera made the first major education tech IPO of the year (2021). As per the experts, the IPO arc of the online company has been positive; it closed its shares at $45.98 on April 16, 2021.
Founded in 2014, Bumble Inc. is an online dating application providing an interface for strangers to meet online and communicate. Based in Austin, Texas, United States, the dating app opened its IPO on February 11, 2021, at $43; Bumble earned $2.15 billion through its public offering. The stock price raised by 64 percent on the first day of trading at $59.81 on April 16, 2021.
Founded in 2012 and headquartered in New York City, Oscar Health is an online medical insurance company providing easy health care to the citizens. The tech-enabled medical insurance provider made its public offering on March 3, 2021, and priced it at $39. Unfortunately, the company closed at $34.80 on its first day of trading and finally closed its stock at $24.44 on April 16, 2021. Although the IPO arc has been negative, one must consider the general dip in the stock market since the first week of trading; Oscar Health became a public company only a week back.
Founded in 2011 and headquartered in New York City, DigitalOcean is a cloud computing company that provides cloud services to developers worldwide to help deploy and scaling applications. It has data centers around the world. The cloud computing service provider opened up for public servicing on March 23, 2021, pricing their per share at $47. DigitalOcean closed its first day of the trading session at $42.50 and closed the stock price at $44.87 on April 16, 2021. The IPO arc for the cloud computing company has been negative due to dire market conditions.
Founded in 2012 and based in San Fransico, Affirm is a technologically enabled public finance company lending installment loans to consumers. The company’s revenue stands at 51 crores USD (2019), with an opening IPO priced at $49. On January 13, 2021, the public offering was issued and closed the stock at $97.24 with a 100 percent raise on the first trading day. Affirm’s stock closed on February 18, 2021, at $105.55; overall, Affirm witnessed a positive IPO arc so far.
Founded in 2012, with revenue at 150 crores USD (2020), AppLovin is an online tech platform for mobile developers based in Palo Alto, California. This platform provides solutions to mobile companies and helps them grow their businesses. The public offering opened on April 15, 2021, at $80, and the stock price closed on April 16, 2021, at $61, with a 19 percent decline compared to the original IPO price. The IPO arc is negative as of yet. However, the company has gone public quite recently; investors must check on the revisions in the share market.
While the companies mentioned above have already gone public, here’s an exception of the one that is yet to—the 2011 born Bengaluru-based Byju’s, an Indian edtech company, rolled in a mire of controversies around curbing dissent and issuing defamation notices for public criticism.
With the boom in edtech (thanks to the pandemic) and the unflinching trust of the VCs, the company is set to overtake India’s most expensive startup, Paytm, at $16 billion. According to the founder and CEO, Byju Raveendran, Byjus is looking at IPO in the next 18 to 24 months. Here, we are curious to learn how Byjus is set to achieve its IPO aspirations while dealing with tremendous public wrath! Will Byjus get listed successfully? If yes, will it be able to sustain it?
In conclusion, businesses going IPOs is to ring in a new status quotient. And for those who consider IPOs an easy target to invest as for short-term gains, conduct due diligence in consultation with an expert without fail.