Most Awaited IPOs Of 2021

Most Awaited IPOs Of 2021

Since the beginning of 2021, there is a lot of interest in upcoming IPOs (Initial Public Offerings) among investors. With the government’s disinvestment goal acting as a perfect catalyst, let us look at some of the popular IPOs expected to be floated in 2021.

Crux of the Matter

Understanding Market Parlance
Fresh Issue
Issuing new equity shares of the company and selling them to investors in an open market.

Offer For Sale
Selling of shares by an existing promoter. A mechanism that allows the promoters of the company to reduce its holdings.

Life Insurance Corporation

  • LIC IPO is being touted as India’s biggest ever
  • The insurer controls 72% of the market and enjoys a 66% share in total first-year premium collection
  • Expected to contribute  a huge chunk to GOI’s goal of ₹2.1 trillion of disinvestment in FY21

After raising $600 million from Tiger Global and others in a pre-IPO round, Zomato is expected to file for an IPO this year. This could be the first of the new-age Indian startups to go public.

The very first by an online cosmetic market, Nykaa plans to launch an IPO at the valuation of $3 billion mostly in the second half of 2021. 

Bajaj Energy

  • One of the largest thermal energy generators, BE’s issue size is expected to be ~₹5,450 crores.
  • It is also looking to acquire Lalitpur Power’s 1980 MW power plant from the proceeds of the IPO.

Kalyan Jewellers

  • One of the leading jewellery brands in India, the company is planning to raise ₹1,750 crores.
  • The IPO may consist of a fresh issue of ₹1,000 crores with the rest being Offer for Sale

RailTel Ltd.
From the department of Railways, this ICT infrastructure provider’s tentative issue size is ₹700 crores.

Read in detail about how do IPO’s work here

  • Yogakshemam Vahamyaham“, the slogan of LIC is derived from Bhagavad Gita, which means “Your welfare is our responsibility“.
  • Nykaa was founded in 2012 by Falguni Nayar. The Nykaa brand name is derived from the Sanskrit word ‘Nayaka’ which means ‘one in the Spotlight.’
  • As of 2015, Indian Railways was India’s largest employer with ~1.4 million employees. It was also the world 8th largest employer.

Will 2021 Be A Year For Hiring Spree?

Will 2021 Be A Year For Hiring Spree?

2020 has been nothing but a disruptive year! With unemployment being the second most cracking issue, after the pandemic – let’s have a look at how this scenario is expected to change in 2021 and try to answer the imminent question, will 2021 be a year of hiring spree?

Crux of the Matter

Impact Of Covid-19 On Jobs
As per ILO, globally 400 million jobs were lost between April – June 2020. Of which 4 million loss account for India’s Youth population. ~67% of apprenticeships and 75% of internships were revoked in the Q1 of 2020 in India 

How was work disrupted?
– Reduced working hours & earnings
– Job losses for paid workers & self employed
– Impediment in education & training 

Inbox 2021
According to the Manpower Group Employment Outlook Survey:

– With a cautioned growth in hiring by the Indian corporates for Jan quarter, estimation is to have an increase of about 2 percentage points as compared to December quarter.
– Sectors expected to drive hiring: Finance, Insurance, FMCG, Pharma & Healthcare, and E-Commerce.
– Strongest hiring in small enterprises followed by medium & large ones.

Employment Trends
As per Aon,
– 71% of the Indian companies gave raises in 2020 – it is expected to reach 87% in 2021.
– Average hike of 6.1% observed in 2020 – it is expected to be ~7.3% in 2021.
Hiring of women workforce increased with remote working models.

What Will Shape Hiring in 2021?

  • Changing working patterns
  • Driven by AI & IoT
  • Rise in Gig workforce
  • More emphasis on retention
  • Employer branding & candidate experience will be a priority
  • Diversity would be nurtured

Hiring Announcements
– Ernst & Young announced that it would induct 9,000 new hires in India in various technology roles this year.
– L&T is planning to recruit 1100 graduate & post graduate engineer trainees for various verticals.
– Capgemini would be undertaking lateral hiring of around 48,000 individuals globally, 24,000 out out of which would
be from India.
– Fiat Chrysler plans to invest $150 million for Global digital hub in Hyderabad. ~1000 cutting edge tech jobs to be created by 2021.

While 2020 was nothing but distressed, Indian markets do show some healthy signs of growth and optimism in 2021. Hoping for the best!

  • Cost reduction is the process used by companies to reduce their costs and increase their profits. Depending on a company’s services or product, the strategies can vary. 
  • A layoff is a temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees for business reasons, such as personnel management or downsizing an organization. Originally, layoff referred exclusively to a temporary interruption in work or employment but this has evolved to the permanent elimination of a position. 
  • Disney announced on September 29 that it was cutting 28,000 jobs from its theme parks division as the coronavirus pandemic continues to heavily impact that side of its business. The layoffs will most heavily affect part-time employees. CNBC reported in August that park shutdowns cost the company $3.5 billion.