PhonePe, Lenskart among Indian brands preparing for IPO
What's the story
A host of Indian start-ups across sectors such as fintech, consumer goods, and logistics are gearing up for their stock market debut. The trend has been particularly noticeable in recent months, with many new-age internet firms preparing for initial public offerings (IPOs). Some have already filed their draft papers, while others are in the final stages of the process.
Market entrants
Wakefit to raise ₹468 crore through a fresh issue
Wakefit, a leading mattress and furniture manufacturer, is among the latest entrants in this IPO race. Wakefit has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹468 crore through a fresh issue. The funds will be used to open 118 new retail outlets and upgrade existing ones. The IPO also includes an offer-for-sale (OFS) component.
High stakes
Groww and Pine Labs
Online investment platform Groww has confidentially filed its DRHP for an IPO worth $700 million to $1 billion. These shares will be listed on the BSE and NSE. Meanwhile, Pine Labs hopes to raise ₹2,600 crore through a fresh issue and an OFS of up to 147.8 million shares. The company is backed by major investors such as Mastercard, PayPal, and Temasek and is eyeing a valuation between $4-5 billion.
Future listings
Shiprocket and Urban Company
E-commerce enablement platform Shiprocket, backed by Zomato and Temasek, confidentially filed its IPO papers in May. It plans to raise ₹2,000-2,500 crore through the offering, including a fresh issue of ₹1,000-1,100 crore. At-home services platform Urban Company also filed its DRHP in April for a ₹1,900 crore IPO with a fresh issue of ₹429 crore and an OFS of ₹1,471 crore by investors like Accel and Tiger Global.
Market moves
boAt and Capillary Technologies
Imagine Marketing, the parent company of boAt, filed confidential IPO papers earlier this year. However, the company clarified that this doesn't guarantee an upcoming IPO. boAt is likely eyeing a valuation of over $1.5 billion, which could change closer to the filing date. Meanwhile, customer engagement and loyalty provider Capillary Technologies has also filed for an IPO with a ₹430 crore fresh issue and an OFS of 1.83 crore shares.
Anticipated entries
Meesho and Lenskart
E-commerce platform Meesho has secured shareholder approval to raise ₹4,250 crore through a fresh issue. After recently moving its domicile back to India, it is expected to file its DRHP in the coming weeks. Meanwhile, eyewear brand Lenskart is also planning a $1 billion IPO with an estimated valuation of around $10 billion. The SoftBank-backed company has already converted into a public limited entity.
Strategic moves
Shadowfax, Zetwerk, and PhonePe
Logistics start-up Shadowfax is reportedly planning to confidentially file its DRHP within a month. The IPO is likely to raise ₹2,000-2,500 crore, with half as a fresh issue. Manufacturing unicorn Zetwerk plans to go public in the next 12-24 months and will begin preparations for its listing in this fiscal year. Digital payments giant PhonePe is also eyeing a $1.5 billion IPO later this year with an estimated valuation of around $15 billion.