Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

In Friday's Union Budget presentation, the Finance Minister proposed increasing the Minimum Public Shareholding (MPS) in listed companies from 25% to 35% and has asked the Securities and Exchange Board of India (SEBI) to consider raising the threshold. If and when implemented, promoters will need to either sell down their stake to meet the 35% threshold or buy back their stock and delist from the exchanges.In this piece, we look at multinational companies that have subsidiaries listed in India that do not meet the 35% threshold currently, and possible action on their part based on the current stock price, delisting guidelines and other considerations.

In Friday's Union Budget presentation, the Finance Minister proposed increasing the Minimum Public Shareholding (MPS) in listed companies from 25% to 35% and has asked the Securities and Exchange Board of India (SEBI) to consider raising the threshold. If and when implemented, promoters will need to either sell down their stake to meet the 35% threshold or buy back their stock and delist from the exchanges.In this piece, we look at multinational companies that have subsidiaries listed in India that do not meet the 35% threshold currently, and possible action on their part based on the current stock price, delisting guidelines and other considerations.

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

Crystal Crop Protection Ltd / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/27364" target="_blank" data-smartkarma-citation="entities:27364:1">Crystal Crop Protection Ltd (0077937D IN)</a> plans to raise US$150m in its IPO. The company primarily sells agrichemicals in the Indian market.The company has delivered mixed earnings over the past few years. The DRHP fails to explain the decline in revenue in FY16 or the steady decline in insecticide sales, nor does it provide any details of the shift in sales towards institutions and away from the company's own brands. In this insight, we will look into some of these issues while briefly touching on valuations and providing a list of questions for management. Once the deal is live, we will follow-up with another insight.

Crystal Crop Protection Ltd (0077937D IN) plans to raise US$150m in its IPO. The company primarily sells agrichemicals in the Indian market.The company has delivered mixed earnings over the past few years. The DRHP fails to explain the decline in revenue in FY16 or the steady decline in insecticide sales, nor does it provide any details of the shift in sales towards institutions and away from the company's own brands. In this insight, we will look into some of these issues while briefly touching on valuations and providing a list of questions for management. Once the deal is live, we will follow-up with another insight.

Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers

Value investor- India mid & small caps

Bhaskar Chakraborty

Thematic (Sector/Industry)

<ul><li>Recently, the consumer insights arm of WPP came out with a report suggesting a sharp pickup in FMCG sales volume in rural India in 2QFY18</li><li>We see continued pressure on rural incomes in 2HFY18 and believe any recovery will be modest at best</li><li>We note prices of key crops like rice, wheat, corn, soybean, cotton and mustard are down YoY</li><li>Milk prices are down 10% in the last three months</li><li>Agrochemical companies guide to continuation of challenging market conditions in 2HFY18</li><li>FMCG majors HUL and Dabur report rural growth in line with urban growth</li><li>Bajaj Finance's rural heavy 2 &amp; 3-W loan delinquencies remain significantly elevated from pre-demonetization levels</li><li>Gold demand in rural wedding season drops 25-30% YoY</li></ul>

Recently, the consumer insights arm of WPP came out with a report suggesting a sharp pickup in FMCG sales volume in rural India in 2QFY18We see continued pressure on rural incomes in 2HFY18 and believe any recovery will be modest at bestWe note prices of key crops like rice, wheat, corn, soybean, cotton and mustard are down YoYMilk prices are down 10% in the last three monthsAgrochemical companies guide to continuation of challenging market conditions in 2HFY18FMCG majors HUL and Dabur report rural growth in line with urban growthBajaj Finance's rural heavy 2 &amp; 3-W loan delinquencies remain significantly elevated from pre-demonetization levelsGold demand in rural wedding season drops 25-30% YoY

A Rural Recovery Is Underway in India, or Is It?

Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this win to ease Modi's chances for another term at national elections in 2019 and that would give him total 7 year period to push for reforms (In his victory speech Modi himself said he is now looking for delivering by 2022 - the 75th year of Indian Independence). Amidst the euphoria of Modi's victory, we would like to highlight some of the ground realities…

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this win to ease Modi's chances for another term at national elections in 2019 and that would give him total 7 year period to push for reforms (In his victory speech Modi himself said he is now looking for delivering by 2022 - the 75th year of Indian Independence). Amidst the euphoria of Modi's victory, we would like to highlight some of the ground realities…

Investors Need To Be Patient With Reform Momentum Even As Modi Win Ensures Policy Continuity

Ruling party BJP has won a landslide victory in the largest state of Uttar Pradesh (UP) thereby putting to rest any doubts over the adverse impact of demonetisation on the electoral prospects of the party. Performance in UP is impressive as the opposition had formed an alliance to fight Modi but still lost poorly.  Most political analysts have been caught on the wrong foot as they predicted a hung assembly while the results show that Modi wave seen during the General elections continues. We…

Ruling party BJP has won a landslide victory in the largest state of Uttar Pradesh (UP) thereby putting to rest any doubts over the adverse impact of demonetisation on the electoral prospects of the party. Performance in UP is impressive as the opposition had formed an alliance to fight Modi but still lost poorly.  Most political analysts have been caught on the wrong foot as they predicted a hung assembly while the results show that Modi wave seen during the General elections continues. We…

Landslide Win for Modi in UP Elections;Upper House No.s to Cross 100 Mark by 2018, a +ve for Reforms

India

Bayer Cropscience Ltd. is involved in cropscience in the area of crop protection , non agricultural pest-control, seeds and plant biotechnology.

Bayer Cropscience (BYRCS IN)

India - Stake Sale or Delisting?

In Friday's Union Budget presentation, the Finance Minister proposed increasing the Minimum Public Shareholding (MPS) in listed companies from 25%...

Brian Freitas

Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers

Crystal Crop Protection Ltd (0077937D IN) plans to raise US$150m in its IPO. The company primarily sells agrichemicals in the Indian market.The...

Sumeet Singh

A Rural Recovery Is Underway in India, or Is It?

Recently, the consumer insights arm of WPP came out with a report suggesting a sharp pickup in FMCG sales volume in rural India in 2QFY18 We see...

Bhaskar Chakraborty

Investors Need To Be Patient With Reform Momentum Even As Modi Win Ensures Policy Continuity

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this...

Asia Advisors

Landslide Win for Modi in UP Elections;Upper House No.s to Cross 100 Mark by 2018, a +ve for Reforms

Ruling party BJP has won a landslide victory in the largest state of Uttar Pradesh (UP) thereby putting to rest any doubts over the adverse impact...

Asia Advisors