The companies want to take advantage of the strong development potential in consumer sectors, and the rising aspirational demand from tier-2 and tier-3 cities.
A dozen consumer-facing companies are planning to launch their IPOs this year, as per a report by the Economic Times. The report says that these companies want to take advantage of the strong development potential in consumer sectors, and the rising aspirational demand from tier-2 and tier-3 cities.
Some of the companies that are planning to launch an IPO this year are food delivery giant Swiggy, Baazar Style Retail Ltd., CG Foods, which is the Wai Wai noodle maker, financial service provider One Mobikwik Systems, Hindustan Coca-Cola Beverages, which is the bottling partner of Coca-Cola, and others.
These companies have reportedly either talked to bankers about a public listing or they have filed the draft red herring prospectus (DRHP). When a company intends to do an initial public offering (IPO), it files a document with the Securities and Exchange Board of India (SEBI) called a Draft Red Herring Prospectus (DRHP).
Similarly, packaged food maker Cremica Food is reportedly planning to raise Rs 500 crore through an IPO. Akshay Bector, managing director of Cremica Food, said, “We are optimistic about the sector; post COVID, we have seen a huge resurgence of both the HORECA (hotels, restaurants, and catering) segment as well as the branded foods segment.”
With the consumer market still unsaturated across various sectors, executives are reportedly optimistic about IPOs in the country. Indian spirits company Allied Blenders and Distillers Ltd. recently obtained the final observation of the Securities and Exchange Board of India to file for an IPO. The company intends to raise Rs 1,500 crore; this includes a fresh issue of up to Rs 1,000 crore.
To add to it is Swiggy’s IPO. The food delivery giant aims to raise around $1 billion through its listing. The holding company of the business has changed its name from "Swiggy Private Limited" to "Swiggy Limited," signifying that it will now be a publicly traded corporation.