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Upcoming IPOs In May 2022 - Aadhar Finance, Fusion Micro Finance, Inspira Enterprise, & More!

Curious to know about the top IPOs of May 2022? Read this blog to get a walkthrough of blockbuster upcoming IPOs like Aadhar Finance, Sterlite Power, Park Hotels, and more!
March 17, 2022

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The IPO calendar of May 2022 includes a diverse bunch of companies looking to go public. One of these companies is likely to raise ₹7,300 crores, which could place it in the top 20 biggest IPOs in India. 

We’ll present this and more top upcoming IPOs of May 2022 to you along with information that matters and nothing more, without the confusing jargon that makes new IPOs difficult to comprehend.  

List Of IPOs In May 2022

The companies looking to go public in May 2022 operate in industries like finance, hospitality, IT, energy, and more. Each company will use the IPO proceeds to achieve different goals. 

Some companies look to pay off their existing debts while others use the money raised to expand their business. Either way, the goal of an IPO is to be successful.

Upcoming IPOs in May 2022
Upcoming IPOs in May 2022

1. Aadhar Housing Finance IPO

A company like Aadhar Housing Finance is known to give out loans to people who want to buy land or real estate, construct a house or structure on a piece of land, renovate their homes, and more.

Founded in 2010, Aadhar has 326 branches and 1,80,000+ customers whose salary ranges from ₹5,000 to ₹50,000 or more. Aadhar’s new IPO in May 2022 will likely help it raise ₹7,300 crores split between:

  • ₹1,500 crores of fresh shares to be issued
  • ₹5,800 crores as an offer-for-sale (OFS)
Offer For Sale
Offer-For-Sale Explained!

Aadhar’s early-stage investor BCP Topco will exit their holdings as a part of the OFS. Money raised from the fresh issue of shares will be used by Aadhar to boost their Tier-I capital. 

Tier-I capital is nothing but a bank’s reserve that it can use to finance business activities. On to Aadhar’s financials. 

Total income stood at ₹1,388 crores with a Profit After Tax (PAT) of ₹189 crores in FY20. This was an improvement from FY19 when Aadhar registered a total income of ₹1,265 crores with a PAT of ₹161 crores. 

2. Sterlite Power IPO

Founded in 2006, Sterlite Power is a company that develops the energy transmission infrastructure. They’re known to use modern tech like LIDAR and drones to enable power transmission.

Sterlite Power’s on the IPO calendar for 2022 as they’re likely to go public in May. The IPO is set to be worth approximately ₹1,250 crores and is a straightforward issue of fresh shares. 

The energy company may consider a pre-IPO placement worth ₹220 crores which, if successful, would lead to a lower IPO issue size. Sterlite Power is expected to use the IPO proceeds to pay off existing debt.

In FY21, Sterlite Power generated revenue of ₹2,092.39 crores with a PAT of ₹870.12 crores. Both these stats are lower compared to FY20 when revenue stood at ₹3,004.32 crores and PAT was ₹942.97 crores.

3. Park Hotels IPO

Park Hotels is a chain of luxury 5-star hotels that was founded in 1967. It operates in metropolitan cities like Mumbai, New Delhi, Hyderabad, and more. Park Hotels filed a DRHP with SEBI to go public in January 2020.

DRHP Explained!
DRHP Explained!

Fast forward two years later and Park Hotels is expected to launch an upcoming IPO in May 2022. The IPO is likely to be worth ₹1,000 crores and is broken down as follows:

  • ₹400 crores worth of new shares to be issued
  • ₹600 crores as an offer-for-sale (OFS)

Park Hotel’s promoter will be selling shares worth ₹125.412 crores while Apeejay Private Ltd and Apeejay House Pvt Ltd will exit their holdings worth ₹354.950 crores and ₹84.730 crores respectively. 

Park Hotel’s existing investor is also expected to offload shares worth ₹34.908 crores. In FY19, the luxury hotel chain logged a total income of ₹430.950 crores compared to ₹388.386 crores in FY18. 

4. Inspira Enterprise India IPO

Inspira Enterprise India is primarily a cybersecurity firm that was founded in 2008. Their clientele is diverse and includes companies from both the private and public sectors. 

With its upcoming IPO in May, the tech company is looking to raise ₹800 crores that is split between:

  • A fresh issue of shares worth ₹300 crores
  • An offer-for-sale worth ₹500 crores

The OFS will see the likes of Prakash Jain, Manjula Jain Family Trust, and Prakash Jain Family Trust offload their holdings in Inspira Enterprise India. 

The tech company’s total income for FY21 was ₹813.89 crores. This was an improvement over FY20 when the total income stood at ₹768.135 crores. 

5. Fusion Micro Finance IPO

Fusion Micro Finance is an NBFC whose aim is to provide the underbanked, especially women, with financial services like small credit (microfinance), business loans, machinery loans, and more.  

Founded in 2010, Fusion Micro Finance is now looking to go public with an upcoming IPO in May worth at least ₹600 crores. The IPO is split between:

  • ₹600 crores worth of fresh shares to be issued
  • 2,19,66,841 equity shares as an offer-for-sale

Promoters of Fusion Micro Finance are likely to put up 15 lakh shares for sale while some investors may exit 103.21 lakh shares as a part of the OFS. 

Fusion Micro Finance’s net interest income for FY21 stood at ₹430.89 crores, higher than the ₹312.30 crores that it logged in FY20. Net profit declined in FY21 to ₹43.94 crores from ₹69.61 crores in FY20. 

Conclusion

The top upcoming IPOs in May 2022 include Aadhar Housing Finance, Sterlite Power, Park Hotels, Inspira Enterprise India, and Fusion Micro Finance which could together raise over ₹10,950 crores. 

May maybe an exciting month for new IPOs in India but it is also famous for an old stock market adage, “Sell in May and Go Away", arising from the relatively weak performance of stocks between May and November.  

This adage, combined with the underperformance of several top Indian IPOs like Paytm and Zomato, may have investors turning to other investment options that have a solid track record like:

Note: Facts & figures are true as of 17-03-2022. None of the information shared here is to be construed as investment advice. Exercise caution when investing in assets like stocks, mutual funds, alternative investments, and others.

Priya Bansal
Curious about personal finance and all things money. Can either find me reading a book or dancing to a tune.

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