Connect with us

Business

4 big IPOs to look out for in 2022

Published

on

IPOs (initial public offerings) have generated a lot of buzz in recent months. non-public businesses and startups looked to profit on the positive capitalist sentiment within the market.
Over forty companies launched their IPOs in 2021 (until September) raising over ₹700 bn.
Around thirty more are probably to come out with their IPOs within the October-December quarter as well as fintech big Paytm, and insurtech firm Policybazaar.

Most of those IPOs are profitable for investors and are trading on top of their issue value.

For instance, the stock of home health care and wellbeing product maker Nureca has surged over 300 percent to  ₹1,738 from its issue value of  ₹400.

Advertisement

The stock of Paras Defence has rallied over 380% to  ₹846 from its issue value of  ₹175 per share.

If the market momentum continues and therefore the liquidity remains high, then the remaining IPOs may witness strong demand.

This momentum is predicted to be carried into the New Year as well. Here are four IPOs to appear forward to in 2022.

Advertisement

#1 life insurance Corporation of India (LIC)

State-owned life insurance Corporation of India is anticipated to come out with its IPO sometime within the fourth quarter of the fiscal year 2021-22.

The ipo is expected to be India’s biggest-ever initial public offering with the govt. selling a stake of 5-10% within the insurance company.

The listing are going to be crucial for the govt. to fulfill its withdrawal target. It’s estimated that this ipo would fetch the government the govt. bn and ₹800 bn.

Advertisement

LIC is India’s largest life insurer, with substantial money reserves and a long history of trust.

It’s additionally the foremost profitable company owned by the govt.. consistent with a media report, the insurer created a stock market profit of around ₹100 bn just between april and June 2021.

LIC additionally features a large market share of 49.8%. The remaining twenty three private companies like HDFC Life and ICICI prudential life insurance have the remaining 50.2% share.

Advertisement

As per media reports, a ministerial panel dubbed, the ‘alternative mechanism on strategic divestment’, can select the size of the stake to be sold . It’s probably it’ll not be over 10 percent.

Other details like the value band, the grey market premium, exact issue size and face price of the IPO are yet to be disclosed. it’s also unclear what the precise dates of the IPO are going to be as of now.

That apart, the govt. is considering a proposal for foreign investors to own as much as twenty percent in LIC, which might enable them to participate within the nation’s biggest IPO.

Advertisement

It’s discussing a plan to amend foreign direct investment (FDI) rules in order that investors will acquire the stake without the government’s approval under the so-called automatic route.

No matter what happens, this can be this is be the defining IPO event of 2022.

#2 Byju’s

India’s most beneficial startup, online education supplier Byju’s, is also in talks to lift money via an IPO next year.

Advertisement

It plans to raise between US$400 m to US$600 m.

The Bangalore-headquartered company is predicted to shut its pre-IPO fundraise during a few weeks at a valuation of about US$21 bn. It’s probably to be split roughly evenly between equity and debt.

Byju’s aims to file its initial IPO documents as early because the second quarter of next year, shortly after the close of its fiscal year in March.

Advertisement

It had previously looked at a timeline of twelve to twenty four months after the fundraise.

As per reports, the startup and its bankers are discussing a valuation of US$40 bn to US$50 bn. Byju’s was valued at US$18 bn in its latest round last month, up from US$16.5 bn in june 2021.

The online education startup has prominent international investors as well as Facebook founder Mark Zuckerberg’s Chan-Zuckerberg Initiative, Naspers, Tiger global Management, and private equity giant Silver Lake Management.

Advertisement

Its bankers include Morgan Stanley, Citigroup, and JPMorgan Chase.

Byju’s has been on an acquisition binge in the past year, getting startups offering coding lessons, professional learning courses, and check preparation classes for competitive Indian exams.

The company added forty five m students to its platform in India last year. It had more than one hundred m users on the app in July 2021. Of these, 6.5 m were paid subscribers.

Advertisement

The company said that it’s targeting ₹100 bn (US$1.4 bn) revenue within the fiscal year 2022, with a twenty percent gross margin.

#3 Ola

Ride-hailing an ola is additionally exploring a public an early next year with associate aim to raise a minimum of US$1.5-2 bn.

This values the Bengaluru-based unicorn at US$12-14 bn.

Advertisement

The company can raise half the capital through a primary issue whereas the remainder the rest through a suggestion for sale (OFS).

Unlike most startups, ola is profitable.

The company reported a standalone operative profit of ₹898 m for the twelvemonth 2021 versus a loss of ₹6.1 bn a year ago.

Advertisement

Despite revenue down sixty fifth from a year ago due to the pandemic, ola turned a profit, helped by aggressive value cuts and a reduction within the workforce.

Earlier last month, ola raised US$500 m in what could be termed a pre-IPO round. private equity companies, Warburg pincus and Temasek Holdings invested with, along with 2 others.

Ola additionally recently declared the acquisition of GeoSpoc, a six-year-old Pune-based geospatial company. With GeoSpoc, the company is looking at building ensuing generation of location technology for the world.

Advertisement

#4 Delhivery

Adding to the list of tech firms that plan to list next year is logistics company Delhivery.

The company plans to raise US$400-US$500 m via its IPO.

It has already filed its draft red herring prospectus (DRHP) with the market regulator.

Advertisement

The issue size of the IPO is predicted to be around ₹74.6 bn of that ₹50 bn are going to be via a recent issue and ₹24.6 bn from an offer for sale.

Existing shareholders that conceive to sell their stake are China Momentum Fund (Deli CMF) – ₹4 bn, carlyle – ₹9.2 bn, SoftBank – ₹7.5 bn, and Times web – ₹3.3 bn.

The likely valuation expected by the corporate via the issue is around US$5.5 bn.

Advertisement

The company plans to use the takings for funding organic growth initiatives and for funding inorganic growth through acquisitions and alternative strategic initiatives.

Delhivery recently signed an agreement to acquire a 100 percent stake in rival express logistics player Spoton logistics.

The company additionally issued bonus shares to its shareholders through a resolution passed at its Extraordinary General Meeting (EGM) persevered twenty nine September 2021.

Advertisement

The IPO market is booming in India will the trend continue?

Following the recent correction, the Indian stock market is still currently trading high and IPOs are attracting some wild valuations.

Given the abounding liquidity, the market regulator easing listing procedures and overall optimistic sentiments, the initial public offering craze is understandable.

Data suggests that companies raised funds to the tune of US$4.6 bn from IPOs last year. many believe this amount are going to be easily surpassed in 2021.

Advertisement

As corporations line up to raise funds from the market amid high valuations, investors need to think about several factors before investing their money in an IPO.

If you’re investing in an IPO, weigh in all the positive and negative factors affecting the corporate.

Advertisement

Business

Elon Musk Breaks Silence on Twitter’s Failures Since Takeover

Published

on

Elon Musk Breaks Silence on Twitter's Failures Since Takeover

It’s been more than six months since Elon Musk took over the charge of Twitter. Since then, the micro-blogging firm has been in the news for all the wrong reasons. Roles and responsibility shuffling, termination of employees, and the recent subscription-based verified badge all are indicating the decisions are nothing but obnoxious. In a recent interview with the BBC, Twitter CEO Elon Musk described his experience as Twitter CEO as a “rollercoaster,” acknowledging the highs and lows that have taken place in his tenure.

Twitter categorized the BBC’s Twitter account as “government-funded media,” a designation that is often reserved for government-owned and operated news organizations. This prompted the broadcaster to have a dialogue with Twitter’s Elon Musk. It is important to note that Musk has been skeptical of conventional media, and when challenged, the press email address for Twitter even sends back a poop emoji.

Elon Musk, the CEO of Twitter, made a number of recent steps, including the announcement that all legacy verified accounts will lose their ticks unless the accounts subscribed to Twitter Blue, a monthly subscription that costs $11 in the United States and 900 rupees in India. This choice was taken to prevent influential journalists from having the ability to choose which pieces of news should get more attention. Musk has voiced the expectation that this step would give the general population the ability to determine the narrative, rather than the media.

Advertisement

In the interview

Elon Musk has given admission to mistakes and errors that happened on Twitter since he took the leadership of the platform. He also said that he feels the business is “going to a nice place.” According to him, the business is “basically breaking even” at this point since advertisers are starting to come back.

It is commendable that Elon Musk is willing to take responsibility for Twitter’s shortcomings and missteps. It is quite unusual for a CEO to acknowledge having made errors, and it is even more unusual for them to do so in public. Nonetheless, Musk’s honesty in addressing the company’s failures might help the public trust Twitter more, realizing that they are mindful of their weaknesses and striving to improve. This is because the public would know that Twitter is aware of its failings and is working to improve.

Elon Musk’s interview with the BBC provides light on the highs and lows of his term as CEO of Twitter, His acknowledgment of faults and failings is a welcome change. Only time will tell whether Twitter is able to win back the confidence of the general people and transform into a platform that emphasizes authenticity and transparency.

Advertisement
Continue Reading

Business

Netflix Layoffs 150 Employees Given Declining Subscribers Base

Netflix layoffs 150 employees from its workforce. The layoffs will mainly affect its office in the United States, which is located in the state of California.

Published

on

Netflix Layoffs

World’s largest OTT platform, Netflix layoffs 150 employees from its workforce. The firm has been lately striving hard to retain its falling number of subscribers, but it seems Netflix could not succeed in stopping the number of subscribers from plummeting. So, Netflix on Tuesday announced that it was laying off 2 percent of its staff.

The layoffs will mainly affect its office in the United States, which is located in the state of California. They make up roughly 2 percent of the company’s workforce in North America, somewhere around 7,500 people.

Why Netflix Layoffs Its Staff?

Netflix Layoffs us

Netflix announced in April 2022 that it had lost 200,000 members in the first three months of the year. This was the first time that the streaming service had ever seen a significant decline in consumers. The company also warned that another two million users were projected to flee in the next quarter.

Also read: OnePlus Ace Racing Edition Launching In China

Advertisement

Despite these losses, Netflix remains the undisputed market leader with 220 million subscribers worldwide. However, its rivals are expanding at a much quicker pace than before, and they are starting to intrude into its domain by providing content and services that are alternative to their own.

Netflix has already taken steps to address this issue by reducing its workforce by 2% (around 150 employees) to reduce costs and increase efficiency. However, some analysts believe that further layoffs may be necessary if Netflix wants to remain competitive as its rivals continue their meteoric rise in popularity among customers worldwide.

“Netflix’s recent financial report showed that the business had lost customers due to the conflict in Ukraine and its decision to hike pricing in the United States. It was found that only leaving the Russian market had resulted in a loss of 700,000 subscribers for the business.
However, this was not the only bad news for Netflix. The company also announced an increase in its quarterly losses and said that it would be raising prices for new customers.

Advertisement

Clarification On Netflix Layoffs

A spokesperson for Netflix has released a statement regarding the company’s recent decision to reduce the number of employees by 2%.
The statement reads: “These decisions are primarily motivated by business requirements rather than individual performance, making them highly challenging since none of us want to say goodbye to such terrific colleagues.

The statement did not clarify which divisions of Netflix were impacted by these layoffs; however, according to the reports, content creation and recruitment departments and communications departments were affected by these job cuts.

Netflix is also trimming the number of its original productions. To minimize expenses, it decided to stop the creation of Pearl, an animated series that Meghan Markle developed. This decision was made in early May.

Advertisement

Also read: Oppo Reno 8 Lineup Launching On May 23 In China

Testing Alternative Revenue Models

Since it announced that it would be raising prices, Netflix has been investigating other ways that it may make cash. While the company has said that it still needs more time to figure out how these changes will affect its users, they have already begun testing ad-based pricing models.

The company is also working with advertisers to ensure that their ads are relevant instead of interrupting the user experience.
The OTT company also stated that it would be cracking down on password sharing among family members or friends who may be sharing accounts. Netflix said this practice was responsible for losing 100 million homes in worldwide markets, including India and China.

Advertisement

Also read: iPhone 14 Lineup Launch Just Months Away, See Specs

Continue Reading

Business

Crypto Legalization In India Never Possible, Says Finance Secretary Somanathan, Leaves Traders In Worry

Crypto legalization can never be considered in India Cryptocurrencies and NFT are digital currencies whose price is determined by a transaction between two parties.

Published

on

crypto legalization

According to the Reserve Bank of India (RBI), virtual currencies gaining ground in India, including the newly founded Non-Fungible Tokens, will never be accepted as legal tender in India, which creates doubts about crypto legalization in India, Somanathan, Finance Secretary of India, stressed that only digital currencies that would not default would be supported by the Reserve Bank of India (RBI).  TV Somanathan was speaking about the central bank’s stand on cryptocurrencies after Finance Minister of India Nirmala Sitharaman confirmed that virtual digital assets will be subject to a 30 percent tax.

Crypto legalization can never be considered in India Cryptocurrencies and NFT are digital currencies whose price is determined by a transaction between two parties.

Advertisement

TV Somanathan On Crypto Legalization

After being pressed to clarify his position, the Finance Secretary said that anyone who seeks to engage in private cryptocurrency should be aware that such investments do not have the government’s permission and that there is no guarantee whether their investment will be profitable or not. He went on to say that although one may incur losses, the central government is under no obligation to reimburse one for such losses.

Also Read: Crypto Tax Policy Brings 30% Tax On Cryptocurrency Transactions, No Respite On Losses

Providing clarity on the issues of cryptocurrency and crypto legalization, Somanathan stated the Reserve Bank of India would support the digital currency, and the money will be under its control; nevertheless, the currency will be digital in form. The Reserve Bank of India (RBI) has declared that the digital rupee that it will create would be recognized as legitimate money.  TV Somanathan said, “The rest of them do not fall under legal tender as per the opinion of the Reserve Bank of India, and they will never have legal tender status.

Advertisement

As part of her Budget 2022 address, the Finance minister of India, Nirmala Sitharaman, proposed a 30 percent tax on digital assets derived from virtual assets delivered on Tuesday. The scale and prevalence of these transactions, in her opinion, have increased dramatically in recent years, and she believes that a particular tax system should be formed to address the frequency and amplitude of these transactions.

Also Read: What Is Web3.0, Its Advantages And Disadvantages

It has been clarified that, except for the cost of purchase, no deductions would be permitted in respect of any expenditures or allowances while calculating such income, according to her. Aside from that, she recommended an additional 1% service fee on payments made regarding payments on virtual digital assets that are transmitted in amounts more than and equal to the threshold monetary amount. The proposed 30 percent tax on the cryptocurrencies will be chargeable at the receivers end, which means the sender of digital currency will not have to pay any tax. But the receiver of the currency will be liable to pay the newly proposed 30 percent tax. While in trading in these digital currencies, there will be no tax on purchasing but selling off coins will be taxable at 30 percent.

Advertisement

Also Read: Google And Airtel Partnership Begins! Google To Invest $1 Billion In Bharti Airtel

Crypto traders seemed happy with the newly proposed crypto tax policy yesterday. However, crypto legalization bill is what they are waiting for. On the other hand, there was a little surge in values of the crypto coins. However, there was a significant fall in price today.

Also Read: Swiggy Raises Funding In Series K Round, Total Market Value Goes Up To $10.7 Billion

Advertisement

New Feature On CoWIN Portal Allows To Add Up To 6 Beneficiaries Per Account, More Features Introduced too

OnePlus Nord 2T Will Replace Nord 2? Leaks Suggest Nord 2T Will Come In India Around April Or May 2022

Advertisement
Continue Reading

Trending

%d bloggers like this: