ISSUE 1 | 2022
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other big names are also expected to climb the IPO ladder. Assuming there are no major adverse events, we believe 2022 will be another big year for IPOs, especially for those companies who price their IPOs well. KEY SECTORS AND DEALS In Q4 2021, in terms of sector activity, TMT, which has typically accounted for the majority of deal volume in the last two quarters, continued to lead the way with 26 deals followed by Industrials & Chemicals (11 deals) and Financial Services sector (nine deals). Sectors such as Pharma, Medical & biotech, Business Services and Consumer all saw deal activity. Overall, the momentum for M&A and PE transaction all points to a fundamentally strong market ahead. Some of the key deals in various sectors included: TMT • 91streets Media Technologies Private Limited (Pharmeasy) secured USD 350m in a primary funding round ahead of its IPO from multiple investors such as Anus Henderson Global Investors plc, ApaH Capital,
Amansa Capital, IIFL, Steadview Capital, Neuberger Berman Wealth Management etc. • BYJU’S, India’s most valuable start- up, raised USD 300m (for 1.66% stake dilution) as part of a larger investment round from multiple investors such as IIFL Finance, Anagram Capital, Verition Fund Management LLC; XN Exponent Holdings, Oxshott Capital Partners & Time Capital. • A fund raising of USD 283m by ValueDrive Technologies Pvt. Ltd. from various investors such as Think Investments LLC, Tiger Global Management, Avenir Growth Capital etc.
diluted their stake to the public. A wave of IPOs, accompanied by healthy valuations and a sharp upswing in the market, encouraged many PE investors to cash out at a record pace totalling to exit amount of ~ USD 3bn across approximately 24 IPOs . While 2021 was a ground-breaking year in terms of IPOs, we look forward to 2022 with cautious optimism. Equity markets in India have been very choppy and fluctuated during November- December 2021. The Bank of England was the first major central bank to hike its interest rates post-pandemic and US Fed currently taking a hawkish stand. This may affect the markets in adversely. And of course the emergence of the Omicron variant is an added fear. While the third wave has just hit the Indian shores, its impact on the economy will only be seen in the coming few months. All these factors could have a significant impact on capital markets. However, there is an interesting line-up of IPOs already slated for 2022, with reports suggesting that there are already around 38 IPOs in the pipeline. Of these, the IPO of the state- owned Life Insurance Corporation of India Limited is expected to be the biggest with a valuation of USD 1.33 trillion. Several
SAMIR SHETH PARTNER
samirsheth@bdo.in
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