Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Five-Star Business Finance / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/five-star-business-finance" target="_blank" data-smartkarma-citation="entities:35238:1" rel="noopener">Five Star Business Finance (0958461D IN)</a> is looking to raise around US$250m in its upcoming India IPO. </li>
<li>Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.</li>
<li>We have looked at various aspects of the deal in our previous note, in this note, we talk about valuations.</li>
</ul>



Five Star Business Finance (0958461D IN) is looking to raise around US$250m in its upcoming India IPO. 
Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.
We have looked at various aspects of the deal in our previous note, in this note, we talk about valuations.


Five-Star Business IPO - Thoughts on Valuation

<ul>
<li>
<a href="https://www.smartkarma.com/entities/five-star-business-finance" target="_blank" data-smartkarma-citation="entities:35238:1" rel="noopener">Five Star Business Finance (0958461D IN)</a> is looking to raise around US$250m in its upcoming India IPO. </li>
<li>Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.</li>
<li>In this note, we talk about the RHP updates and undertake a peer comparison.</li>
</ul>



Five Star Business Finance (0958461D IN) is looking to raise around US$250m in its upcoming India IPO. 
Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.
In this note, we talk about the RHP updates and undertake a peer comparison.


Five-Star Business IPO - RHP Updates and Peer Comparion

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/home-first-finance-company-india" target="_blank" data-smartkarma-citation="entities:28865:1" rel="noopener">Home First Finance (HOMEFIRS IN)</a> is growing fast and has a low operating cost, there is a reason why. </li>
<li>
<a href="https://www.smartkarma.com/entities/aavas-financiers-ltd" target="_blank" data-smartkarma-citation="entities:27422:1" rel="noopener">Aavas Financiers Ltd (AAVAS IN)</a> operates in its own specific domain taking only risks that it is comfortable with.  </li>
<li>Competitive feedback is positive for <a href="https://www.smartkarma.com/entities/iifl-holdings-ltd" target="_blank" data-smartkarma-citation="entities:20197:1" rel="noopener">IIFL Holdings (IIFL IN)</a> 's HF subsidiary. <a href="https://www.smartkarma.com/entities/capri-global-capital-ltd" target="_blank" data-smartkarma-citation="entities:18094:1" rel="noopener">Capri Global Capital (CGCL IN)</a> seems to be following AU Bank's footsteps, but hopefully only in underwriting.</li>
</ul>



Home First Finance (HOMEFIRS IN) is growing fast and has a low operating cost, there is a reason why. 

Aavas Financiers Ltd (AAVAS IN) operates in its own specific domain taking only risks that it is comfortable with.  
Competitive feedback is positive for IIFL Holdings (IIFL IN) 's HF subsidiary. Capri Global Capital (CGCL IN) seems to be following AU Bank's footsteps, but hopefully only in underwriting.


India Channel Insight #44 | Home First, Aavas, IIFL Home Finance, Capri Global

External broker reports(aggregated public sources), Nirmal Bang

Nirmal Bang

External broker reports(aggregated public sources)

A Relationship Beyond Broking

Nirmal Bang, one of the leading stock broking companies in India, caters to retail and institutional clients by offering them a range of financial products and services, including equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS.

Nirmal Bang is drawn from a diversity of professional backgrounds, and blend of experience, skill and dedication is shared with its clients. Nirmal Bang emphasizes adequate, thorough research local and world-wide developments, balancing these with the astute discovery of intrinsic values, synergies and growth. The aim is simply to help the investors to maximize their returns.

<ul><li><span style="font-size: var(--content-font-size);">Incremental disbursements trends looking strong: Aavas’ 4QFY22 growth should be seen in the context of (1) AUM growth (2) disbursements growth and (3) volume growth.</span></li></ul><div><div><div><div><ul><li>NII growth led by NIM expansion: Our calc. NII increased by 34.7% YoY and 14.6% QoQ.</li></ul><div><div><div><ul><li>Asset quality improves: GS-3 ratio for 4QFY22 declined to 1% from 1.72% in 3QFY22. Adjusted for the RBI’s 12th Nov. 2021 circular, GS-3 ratio declined from 0.83% in 3QFY22 to 0.68% in 4QFY22.</li></ul></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Incremental disbursements trends looking strong: Aavas’ 4QFY22 growth should be seen in the context of (1) AUM growth (2) disbursements growth and (3) volume growth.NII growth led by NIM expansion: Our calc. NII increased by 34.7% YoY and 14.6% QoQ.Asset quality improves: GS-3 ratio for 4QFY22 declined to 1% from 1.72% in 3QFY22. Adjusted for the RBI’s 12th Nov. 2021 circular, GS-3 ratio declined from 0.83% in 3QFY22 to 0.68% in 4QFY22.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Aavas Financiers - Incremental Growth Trends Looking Strong

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

Tamilnad Mercantile Bank Ltd / Equity Capital Markets

<p>Tamilnad Mercantile Bank is looking to raise about US$137m in its upcoming India IPO. The deal will be run by Axis Capital, Motilal Oswal and SBI Capital.</p><p>Tamilnad Mercantile Bank is one of the oldest private sector banks in India, offering banking and financial services to micro, small and medium enterprises (MSME), agricultural and retail customers (RAM). As of Jun 21, it had 509 branches, of which 106 were in rural areas, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. Its overall consumer base is approximately 4.93m and 69.96% of its customers have been associated with the bank for a period of more than five years, contributing 67.02% of deposits and 57.56% of advances.</p>

Tamilnad Mercantile Bank is looking to raise about US$137m in its upcoming India IPO. The deal will be run by Axis Capital, Motilal Oswal and SBI Capital.Tamilnad Mercantile Bank is one of the oldest private sector banks in India, offering banking and financial services to micro, small and medium enterprises (MSME), agricultural and retail customers (RAM). As of Jun 21, it had 509 branches, of which 106 were in rural areas, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. Its overall consumer base is approximately 4.93m and 69.96% of its customers have been associated with the bank for a period of more than five years, contributing 67.02% of deposits and 57.56% of advances.

Tamilnad Mercantile Bank Pre-IPO Tearsheet

India

Aavas Financiers Ltd. is a retail-focused housing finance company primarily serving the low and middle-income segments, particularly self-employed individuals, in semi-urban and rural areas of India. The company specializes in providing home loans, including for construction, purchase, renovation, and extension, along with MSME loans and loans against property, to customers often excluded from formal credit due to a lack of documented income. Aavas Financiers Ltd. is headquartered in Jaipur, Rajasthan, India, and was founded on February 23, 2011.

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Aavas Financiers (AAVAS IN)

Five-Star Business IPO - Thoughts on Valuation

Five Star Business Finance is looking to raise around US$250m in its upcoming India IPO. In this note, we'll talk about valuations.

Sumeet Singh

Five-Star Business IPO - RHP Updates and Peer Comparion

Five Star Business Finance is looking to raise around US$250m in its upcoming India IPO. In this note, we talk about the RHP updates and undertake...

Sumeet Singh

India Channel Insight #44 | Home First, Aavas, IIFL Home Finance, Capri Global

We visit a tier 1 location in western India, to understand affordable housing, credit practices and the organizational culture of the key players...

Pranav Bhavsar

Aavas Financiers - Incremental Growth Trends Looking Strong

Aavas reported net profit growth of 32% YoY, aided by strong AUM growth, margin expansion and provision reversals. Disbursements were strong,...

Nirmal Bang

Tamilnad Mercantile Bank Pre-IPO Tearsheet

Tamilnad Mercantile Bank is looking to raise about US$137m in its upcoming India IPO. The deal will be run by Axis Capital, Motilal Oswal and SBI...

Clarence Chu

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