PhonePE & ICICI Prudential IPO in the Pipeline, Indira IVF Withdraws Amid Speculations The Indian Equities market is experiencing a significant period of time, with a host of IPOs by household names in the pipeline. Here is a round up of major companies and updates on their pursuit toward listing.
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The Indian Equities market is experiencing a significant period of time, with a host of IPOs by household names in the pipeline. Here is a round up of major companies and updates on their pursuit toward listing.
PhonePe
Walmart backed-digital payments and financial services company PhonePe has made significant strides towards taking the company public by appointing four investment banks – JP Morgan, Kotak Mahindra Capital, Morgan Stanley, and Citi to advise on the listing.
PhonePe is reportedly eyeing a USD 15 billion valuation as well.
As of February 2024. PhonePe has demonstrated strong financial growth, recording an increase in revenue and a simultaneous loss reduction. Revenues increased by 73.78 per cent in FY24 at INR 5,064 crore in FY24, with a reduced net loss of 28.6 per cent, from INR 2,795 crore in FY23 to INR 1,996 crore in FY24.
According to Bajaj Broking, the payment service provider has been preparing for the listing by streamlining its corporate structure. The significant move was to move its domicile from Singapore to India, with the company diversifying its service portfolio to digital payments, insurance, and other financial services.
Proceeds from the listing are predicted to be used for its expansion of service offerings and other operational costs.
ICICI Prudential
Britain-based global insurance company Prudential is reportedly considering taking ICICI Prudential Asset Management Company (AMC), with the IPO allowing Prudential to divert a part of its 49 per cent stake.
ICICI Prudential is currently India's second largest mutual fund, with assets amounting to more than USD 9 trillion.
As of date, the ICICI bank owns 51 per cent stake in the joint venture, with prudential holding the rest. The proposed IPO is also reportedly subject to market conditions and necessary regulatory approvals.
WeWork India
Market regulator Securities and Exchange Board of India (SEBI), in its latest update, stated "issuance of observations (has been) kept in abeyance", meaning WeWork's market debut has been put temporarily on hold.
The Embassy Group-backed flexible office space provider had previously planned to offload 4.37 crore shares through the Offer for Sale (OFS).
The official statement on SEBI's website did not contain any specic reasons for the abeyance.
Institutions, namely JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM have been appointed to manage the issue.
Indira IVF
Indira IVF Hospital, the fertility clinic service provider, has officially withdrawn its draft IPO papers, which were filed through pre-filing cite, citing 'evaluation of various factors and commercial considerations.'
Interestingly, the decision comes at the same time as SEBI's reported concern over indirect promotion through a Bollywood biopic made on Indira IVF founder Ajay Murdia, titled 'Tumko Meri Kasam.'
"The company decided to withdraw the pre-filed DRHP pursuant to the evaluation of various factors and commercial considerations. Reports that suggest any direction from SEBI in this regard are incorrect," said an Indira IVF spokesperson, according to CNBC TV18.
Indira IVF had planned to raise INR 3500 through the IPO.
Watch on the Equity Market
Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity, said that the global sentiments remained weak, which is reflected in Indian markets today.
"Among sectors, Consumer Goods, Financial Services, Oil & Gas, and Banks showed resilience, while weakness was observed in Media, IT, Automobiles, and Pharma. The broader market was slightly positive, with small-cap and mid-cap stocks showing some strength," said Kewat.
Bajaj Broking, through its market closing commentary, said that the benchmark indices traded with a corrective bias, ending the last trading day of the financial year marginally lower.
"IT, Media, and Auto stocks continued their decline for the second consecutive session, impacted by concerns over Trump's tariffs, despite a strong performance from FMCG stocks. The broader market also slipped, with the Nifty Midcap 100 and Smallcap 100 indices down 0.32% and 0.15%, respectively," added Bajaj Broking.
