India has, in the past, been called the next China for possessing some of the same growth potential andinvestment opportunities. The truthfulness of this claim was supported recently when Chinese authorities began cracking down on its tech sector giants, promptinginvestorsto look elsewhere for a more reliable home for their money. Coincidently,Indian tech companies are currently experiencing a boom, with Paytm (NSE: PAYTM) andZomato(NSE: ZOMATO) going public in 2021 and producing some of the countrys largest IPOs to date.
While opportunities can be found outside Indias stock exchanges, I want to explore these regulated markets and upcoming IPOs in this article.
Indias stock exchanges
India is home to eight stock markets with itslisted companiesworth a combined US $3.46 trillion. To put this into perspective, UK listed companies are worth a total of US $3.59 trillion, less than US $100 billion more than the former British colony. By 2024, Indian listed companies are projected to surpass the value of UK companies value and hit approximately US $5.00 trillion.
Hosting these companies are the countries well-known exchanges, including the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), and the Multi-Commodity Exchange (MCX)
3 Indian IPOs to watch in 2022 Snapdeal IPO
Snapdeal is an Indian e-commerce platform catering to the countrys growing middle class, similar to the USs Amazon.com (NASDAQ: AMZN) or Chinas Alibaba (HKG: 9988).
The Company is said to be ready to file preliminary documents signalling its intent toIPOnext year at a valuation of approximately US $1.50 billion.Snapdealis currently backed by Japans Softbank (TYO: 9984) and Chinas Alibaba Group, which are expected to continue to hold significant stakes after the Companys IPO.
Data Patterns (India) IPO
Data Patterns has developed a vast array of electronic systems for the defence and aerospace sectors for the past 35 years.
The Company filed toIPO with regulators in September 2021, expecting to raise 700 crores, or US $100 million, to help it repay debt and aid expansion. The funds will assistData Patternsto deliver on its order book, which has grown by 40.7% over the past four years.
Data Patterns is seeking a valuation of US $340 million when it goes public. However, no official date has been scheduled for its IPO.
MapMyIndia IPO
The digital mapping company, headquartered in Delhi,MapMyIndia, develops mapping technology used by some of the worlds largest companies.
The Company has received approval (as of the last week of November) from the countrys financial authority to go public. MapMyIndia is perhaps the highest-profile Company on this list, with business relationships with US tech giants Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN) and Uber Technologies (NYSE: UBER), among others.
MapMyIndiais seeking a valuation of US $825 million when itIPOs, which it could do before the end of the year. The Company has expressed that the funds will, in part, be used to lift its marketing, helping it compete with the likes of Google (NASDAQ: GOOGL) and Dutch-based TomTom (AMS: TOM2).
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