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

Aavas Financiers Ltd / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/27422" target="_blank" data-smartkarma-citation="entities:27422:1">Aavas Financiers Ltd (AAVAS IN)</a> plans to raise around US$250m in its IPO via a mix of primary and secondary shares offering.The company has grown rapidly over the past few years and has found a niche for itself in servicing self-employed customers in semi-urban and rural areas. Operating in this niche has allowed it to charge a higher rate on its loans while at the same time it has been able to keep its asset quality in check.Aavas was earlier a part of <a href="https://www.smartkarma.com/entities/24196" target="_blank" data-smartkarma-citation="entities:24196:1">Au Small Finance Bank (AUBANK IN)</a> before it was bought by a group of private equity investors. Since then the PE investors have put in more money leading to its capital adequacy ratio (CAR) rising up to 62% in FY18 from 27% at the time of purchase. The higher proportion of lending stemming from equity leads to higher reported NIM and profitability. A truer picture emerges once the impact of the higher CAR is neutralized which implies than NIM would have declined and cost-to-income moved higher over the past few years. Furthermore, if one uses p/b multiple to arrive at valuations, the excess capitalization would result in the market cap being a lot higher, if one doesn't adjust the multiple lower to account for the higher capitalization.

Aavas Financiers Ltd (AAVAS IN) plans to raise around US$250m in its IPO via a mix of primary and secondary shares offering.The company has grown rapidly over the past few years and has found a niche for itself in servicing self-employed customers in semi-urban and rural areas. Operating in this niche has allowed it to charge a higher rate on its loans while at the same time it has been able to keep its asset quality in check.Aavas was earlier a part of Au Small Finance Bank (AUBANK IN) before it was bought by a group of private equity investors. Since then the PE investors have put in more money leading to its capital adequacy ratio (CAR) rising up to 62% in FY18 from 27% at the time of purchase. The higher proportion of lending stemming from equity leads to higher reported NIM and profitability. A truer picture emerges once the impact of the higher CAR is neutralized which implies than NIM would have declined and cost-to-income moved higher over the past few years. Furthermore, if one uses p/b multiple to arrive at valuations, the excess capitalization would result in the market cap being a lot higher, if one doesn't adjust the multiple lower to account for the higher capitalization.

Aavas Financiers Pre-IPO - Over-Capitalisation Leading to Higher Profitability

India

Aavas Financiers Limited provides consumer finance services. The Company offers home, land purchase, construction, home improvement, balance transfer, and business loans. Aavas Financiers serves customers in India.

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Aavas Financiers Pre-IPO - Over-Capitalisation Leading to Higher Profitability

Aavas Financiers Ltd (AAVAS IN) plans to raise around US$250m in its IPO via a mix of primary and secondary shares offering.The company has grown...

Sumeet Singh