1. IPO of LIC:
LIC after IPO is expected to have a market capitalization of Rs. 15-17 lakh crore. There is a high case and an opinion that if the current uncertainty is contained, the issue could generate high interest and subscription. However, it will also suck liquidity from the secondary markets. As noted, LIC posted CAGR growth of 8% in FY2011-21 and a return on equity (ROE) of over 80% in FY21.
Although history has seen great IPOs but currently they have not performed well e.g. DLF, Reliance Power, Coal India among others. Also, as the LIC tentative offer period is known, to your surprise, the issue commands the GMP in negative according to a leading IPOS tracking portal.
2. Firstcry IPO:
The company, which started as an e-commerce entity for baby care products, is also eyeing an IPO in 2022, according to reports. Apparently, the problem should include the deployment activities of the company, Globalbees. “Work has started for the IPO. FirstCry is aiming to go public this year but the size of the issue is not yet finalized. It would be a mix of primary sale of shares and ‘offer for sale (OFS), where the new funding would be used for mergers and acquisitions (mergers and acquisitions),’ one of the people was quoted in a report by business daily newspapers as saying.
The NSE issue has been further delayed by regulatory investigations of former exchange executives for alleged violations.
SEBI is unlikely to give NSE the go-ahead to go public with the current situation, and it may take another year or so to clean up the whole system,” a senior investment bank official said. quoted in a major daily, “More actions against all those involved in the roommate scam and violation of securities contract rules are likely in the coming months from various agencies. Until then, the regulator may not consider NSE’s request to be made public.”
Moreover, in order to avoid the conflict with LIC’s IPO, companies are delaying their IPO plans.