Here’s all the latest news from the IPO-bound train of Indian startups.
Ixigo files DRHP for Rs 1,600-crore IPO; turns profitable in FY21
Travel booking platform Ixigo has filed its draft red herring prospectus (DRHP) for a Rs 1,600 crore IPO, which will include Rs 750 crore worth fresh issue of shares and the rest will be through Offer for Sale (OFS).
Founders Aloke Bajpai, Chairman, Managing Director and Group CEO, and Rajnish Kumar, Non-Executive Director and Group CPTO will also participate in the OFS. They will sell shares worth Rs 50 crore each. SAIF Partners (now Elevation Capital) will sell Rs 550 crore of shares while Micromax will sell Rs 200 crore worth of shares through the OFS.
The company has said it will use Rs 540 crore from the proceeds for organic and inorganic growth.
It will list as a professionally managed company and will be among the few internet firms that will go public as profitable.
Ixigo posted a profit of Rs 7.5 crore in FY21, compared to a loss of Rs 26 crore in FY20, while it reported a total income of Rs 138 crore, up from Rs 112 crore in FY20.
Meanwhile, online travel aggregator MakeMytrip, one of the early backers of ixigo, has exited the firm a decade after its initial investment. It has pocketed a neat 8X return on its initial investment.
Ex-director seeks to stall Paytm IPO, company calls it harassment: Report
Paytm's Rs 16,600 crore IPO is facing an unusual hurdle as the 71-year-old former director has urged the Securities and Exchange Board of India (SEBI) to stall the offering, alleging he is a co-founder who invested $27,500 two decades ago but never got shares, according to a Reuters report.
According to legal documents seen by Reuters, Paytm says the claim by Ashok Kumar Saxena and allegations of fraud in a police complaint in New Delhi are mischievous attempts to harass the firm. The dispute though is cited under "criminal proceedings" in Paytm's July IPO prospectus filed for regulatory approval.
Saxena denied harassment and said Paytm had a high-profile position that meant a private individual like him was not in a position to harass the company, the report said.
Saxena has approached SEBI to stall the IPO, arguing that investors could lose money if his claim is proved right, according to a previously unreported complaint seen by Reuters.
MobiKwik appoints 4 new independent directors ahead of IPO
Digital payments company MobiKwik on Friday appointed four new independent directors ahead of its IPO opening in September 2021.
The appointments include investment professional and former MD of Blackstone and Oppenheimer, Dr Punita Kumar Sinha, diplomat and former ambassador of India to Egypt and UAE, Navdeep Singh Suri, fintech entrepreneur and cofounder of PaySense, Sayali Karanjkar, and chief technology officer of LinkedIn, Raghu Ram Hiremagalur.
The appointment of the independent directors comes just a month after MobiKwik turned into a public entity from a private limited company on July 12.
MobiKwik had filed the DRHP with SEBI and is looking to raise Rs 1,900 crore via public offering. According to draft documents, Rs 1,500 crore will be primary share sales, while Rs 400 crore will be secondary, where investors can sell their stake.
IPO-bound Pine Labs appoints Kunal Shah to its board
Fintech firm Pine Labs, which is eyeing a US listing by 2023, has announced that it has appointed CRED founder Kunal Shah to its board.
“Pine Labs is a player in digital payments adoption and joining its board is an opportunity to contribute to the ecosystem,” said Kunal Shah, Founder, CRED.
The appointment comes a month after the startup raised over $600 million in a round led by private equity majors Fidelity Management and Research Co, BlackRock, Ishana and Tree Line, taking its valuation to $3 billion.
PharmEasy owner mulls $1 bn IPO: Report
API Holdings, the owner of online pharmacy PharmEasy, is considering a listing at the Bombay Stock Exchange that could raise as much as $1 billion, Bloomberg News reported.
The company, backed by TPG and Temasek, is working with advisers on a potential offering that could take place by March 2022. The firm plans to file a draft prospectus before the end of October.
The company in June bought a majority stake in Thyrocare Technologies for $611 million. API Holdings raised about $420 million in the June funding round valuing the company at about $4.1 billion, the report added.
Deliberations are at an early stage, and details of the offering could still change. PharmEasy has so far delivered more than 15 million orders from medicine to diagnostic kits to health care products, serving over 5 million families, according to its website.
Edelweiss Wealth Management aims to raise $1 bn via pre-IPO PE fund
Edelweiss Wealth Management on Thursday said it is targeting to raise $1 billion through a pre-IPO and late-stage private equity fund.
The company, which launched the 'Edelweiss Crossover Opportunities Fund' in March this year, has already raised $500 million across its first three series, it said in a statement.
The firm announced the launch of 'Series IIIA' with a target to raise another $200 million under the same strategy.
The announcement comes amid a big surge in initial public offers due to easy liquidity and many issues witnessing huge gains on listing.
Edelweiss said its 'crossover' strategy will continue with the launch of a series of funds over the next 12-18 months to achieve the target of $1 billion.
Easy enters into a strategic partnership with IPO-bound ESAF Small Finance Bank
IPO-bound ESAF Small Finance Bank and mortgage tech startup Easy has entered into a strategic partnership to provide digital-first affordable home loans to buyers.
The partnership aims to provide loans to consumers within industry-leading turnaround time. According to the company, ESAF Small Finance Bank will use Easy’s technology and sourcing capabilities to strengthen its lending capabilities.
The partnership is the first Mortgage-as-a-Service (MaaS) deal in India and is the first step to Easy’s long term goals of a neo-mortgage bank, the firm said.
Easy’s proprietary in-house artificial intelligence-enabled technology will be used to ensure ESAF Small Finance Bank’s operational costs remain low and maximum market coverage through the phygital model.
China's tech crackdown thwarts Pony.ai's US listing plans
Autonomous driving startup Pony.ai has put on hold plans to go public in New York through a merger with a blank-check firm at a $12 billion valuation, Reuters reported.
This comes after it failed to gain assurances from Beijing that it would not become a target of the crackdown against Chinese technology companies.
The decision makes Pony.ai one of the biggest companies to suspend its US listing plans after China banned ride-sharing giant Didi Global from signing up new users just days after its blockbuster initial public offering in June.
The Toyota Motor-backed startup will now seek to raise money in a private fundraising round at a valuation of $12 billion, sources told Reuters.
The startup still hopes for a US listing in the unlikely event it receives a green light from the Chinese government imminently.
China Telecom eyes $8.4 bn Shanghai IPO, world's biggest in 2021
China Telecom could raise more than $8 billion in a Shanghai initial public offering that would be the biggest this year, months after it was delisted in the United States amid Washington's stand-off with Beijing, AFP reported.
The firm said it had priced its offer at 4.53 yuan per share, which would be worth 47.1 billion yuan ($7.3 billion), according to a filing with the Shanghai Stock Exchange on Friday. However, if an over-allotment option was exercised the worth would jump to 54 billion yuan ($8.4 billion), Bloomberg News said.
China Telecom was delisted by the New York Stock Exchange in January along with fellow state-owned telecoms firms China Mobile and China Unicom following an executive order by former president Donald Trump.
China Telecom is the country's largest fixed-line operator, and the share issue would be the biggest this year, topping the $5.4 billion raised in Hong Kong by TikTok rival Kuaishou Technology in February.
Germany's Delivery Hero takes 5.1% stake in rival Deliveroo
Germany's Delivery Hero has taken a 5.09 percent stake in online food delivery rival Deliveroo (ROO.L), driving the British company's share price to its highest since listing on the stock market in March.
According to Reuters, shares of Deliveroo, which disclosed the holding in a stock market notice on Monday, rose 11 percent to 360 pence. They were priced at 390 pence in the initial public offering.
Shares of Delivery Hero, a constituent of Germany's blue-chip DAX share index were down 1.3 percent in late morning trading in Frankfurt. The stake was valued at about 284 million pounds (335 million euros) based on Friday's closing price.
(Edited by : Kanishka Sarkar)
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