Want to make more money in 2020? Here are top 10 IPOs to watch
IPO News: SBI Card, UTI AMC, Reliance Jio, Reliance Retail, HDFC Ergo, Equitas Small Finance Bank, Kotak Mahindra Bank AMC, PNB MetLife India, etc. are all set to be listed on Indian indices in 2020.
Investors have seen markets virtually skyrocket in 2019. Huge amounts of money have been made and now, as the year ends, their eyes are on the horizon again eyeing opportunities to add to wealth in a major way in 2020. Notably, IPOs can be the best way to get premium shares at rock-bottom prices. IPOs like IRCTC, Ujjivan Small Finance Bank and CSB Bank got bumper listing on the BSE and NSE.
Oddly enough, investors should know that when it comes to the number of Initial Public Offers or IPOs listing on the stock markets, the year 2019 was the worst year for the Indian share market investors. Compared to 41 IPOs being listed in 2018, only 18 IPOs got listed in the year 2019.
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In 2020 there are some IPOs that can give huge returns to the share market investors - SBI Card, Reliance Jio, UTI AMC, HDFC Bank's HDB Financial and HDFC Ergo, etc.
Speaking on the reason for lesser number of IPOs in 2019 and scope for improvement this time around, Prakash Pandey, MD & CEO at Plutus Advisors said, "At the beginning of the year 2019, investors had held their money as the 2019 Lok Sabha elections were approaching. So, sensing the liquidity crisis and neutral investors' sentiments, companies decided to prolong their IPO listing. But, the way the last two-three months have given benefits to the IPO investors, things are expected o improve in the year 2020 and some high-value IPOs like SBI Card, UTI AMC, Reliance Jio, HDFC Ergo, etc. are expecting their listing at the BSE and NSE."
Pandey listed out following 10 IPOs to watch in 2020:
1] SBI Card: SBI or State Bank of India is coming out with SBI Card IPO. The SBI Card has already submitted its applications with the SEBI (Securities and Exchange Board of India). SBI Card IPO will be Rs 9,500 crore worth.
2] UTI AMC: The UTI AMC has also submitted its papers with the SEBI for its IPO. The size of the UTI AMC IPO is yet to be announced. However, according to the media reports, in UTI AMC IPO, SBI along with BoB, LIC and PNB will offload 18.5 per cent shares in the Asset Management Company. The rest of the UTI AMC shares are with the US company T Row Price and it would also offload its shares during the launch of the UTI AMC IPO.
3] HDFC Ergo: HDFC is coming up with two IPOs in 2020. HDFC Ergo provides general insurance policies, while HDFC Credilia offers education loans. These two subsidiaries of the parent company will be a good competition for the life insurance players and share market investors or IPO investors can expect good returns in the IPO, said Pandey.
4] Equitas Small Finance Bank: Just like SBI Card and UTI AMC, Equitas Small Finance Bank has submitted its papers with the SEBI. The Chennai-based small finance bank will be the third small finance bank to file for an IPO after the CSB Bank and Ujjivan Small Finance Bank. The Equitas Small Finance Bank is looking to raise Rs 550 crore through its IPO. The total IPO size is expected at around Rs 1,000 crore.
5] Kotak Mahindra Bank AMC: The Kotak Mahindra Bank is planning to introduce its Asset Management Company (AMC) business to the Indian share market. According to various reports, Kotak Mahindra Bank's AMC IPO is also expected to be listed in 2020. Starting its operations in 1998, the company today has its presence in 82 cities and has 86 branches. Kotak AMC's asset under management is Rs 1.7 lakh crore and of which Rs 50,000 crore is in equity.
6] PNB MetLife India: The stock market is buzzing with Punjab National Bank (PNB) is most likely to launch an IPO of PNB MetLife India after the bank completes the proposed merger with United Bank of India and Oriental Bank of Commerce. While talking to the media persons PNB MetLife MD and CEO Ashish Kumar Srivastava had hinted about the launch of PNB MetLife India IPO launch in 2020 citing decisions will be taken by the shareholders.
7] Reliance Jio & Reliance Retail: The Sensex heavyweight Reliance Industries is mulling to launch IPOs of Reliance Jio and Reliance Retail. RIL is said to have made clear in the discussions that an IPO will take place only after the company sees its recently demerged fiber and tower businesses — Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt Ltd respectively – get monetised via investors in the two InvITs.
8] Axis Bank AMC: The Axis Bank is most likely to launch its AMC arm in 2020. There are still no reports on the listing but Axis AMC will be the third asset manager if it enters the secondary market early next year.
9] Aditya Birla AMC: Aditya Birla Asset Management Company (AMC) would be the sixth company in-line to enter the secondary market. Established in 1994, Aditya Birla AMC's total domestic assets under management (AUM) are close to Rs 2,540 billion for the quarter ended June 30th, 2019. It has over 7 million investor folios as of June 30th, 2019.
10] Exide Life Insurance Company: Currently, there are three listed life insurance companies in the market, and it seems Exide Life Insurance Company could be the next one in line. The company began its operations in 2002 and today, manages assets worth Rs 14,300 crore.
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