India focused: IPO, special situations, Stylus Holdings

Himanshu Dugar

India focused: IPO, special situations

Stylus Holdings

Stylus Holdings is a buy-side equity research firm. We offer bottom-up investment ideas as well as provide on demand equity research and portfolio tracking. 
At Stylus, our focus is to identify market dislocations that can generate 20+% IRR with a reasonable margin of safety. As part of our research process, we do a deep dive into the fundamentals of the company, evaluate their competitive positioning and assess their valuation.
Our investment team is led by Himanshu Dugar. Himanshu is a Chartered Accountant and a CFA charter holder. He has 10+ years of active experience in the stock market with stints at CRISIL Research, a S&P Global copmany and Miras Investments, a single family office based in Dubai.

Equity Research Firm

Event-Driven

<ul>
<li>Sammaan Capital approved a 3-part preferential issue to Avenir, part of Abu Dhabi's sovereign-controlled IHC, aggregating INR 8,850 crore (USD 1.06 billion) in equity and warrants (convertible in 18 months)</li>
<li>Sammaan has been looking out for an equity partner for few quarters now. Avenir's backing not just improves capital positioning but also helps restructure overall liability side of the business</li>
<li>Upon consummation (80% probability), we anticipate material re-rating potential. However, there are multiple risks in the near term, including accelerated write-offs. Further, an ongoing litigation may jeopardize the deal itself.</li>
</ul>


Sammaan Capital approved a 3-part preferential issue to Avenir, part of Abu Dhabi's sovereign-controlled IHC, aggregating INR 8,850 crore (USD 1.06 billion) in equity and warrants (convertible in 18 months)
Sammaan has been looking out for an equity partner for few quarters now. Avenir's backing not just improves capital positioning but also helps restructure overall liability side of the business
Upon consummation (80% probability), we anticipate material re-rating potential. However, there are multiple risks in the near term, including accelerated write-offs. Further, an ongoing litigation may jeopardize the deal itself.


Sammaan Capital: Can Capital Boost from Abu Dhabi Turnaround Its Fortunes?

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

<ul>
<li>Sammaan Capital's Board approved a preferential issue to Avenir Investment RSC Ltd., a wholly-owned subsidiary of Abu Dhabi's IHC, aggregating INR 8,850 crore (USD 1.06 billion) in equity and warrants.  </li>
<li>The strategic inflow from the well-capitalized, sovereign-linked IHC provides a massive de-risking event, validates Sammaan's new-book strategy, and signals a powerful new stream of capital flows into Indian HFC/NBFC space.  </li>
<li>The scale, strategic nature, and pricing of the deal position Sammaan for a significant re-rating, shifting the investment thesis from asset quality clean-up to funded growth.</li>
</ul>


Sammaan Capital's Board approved a preferential issue to Avenir Investment RSC Ltd., a wholly-owned subsidiary of Abu Dhabi's IHC, aggregating INR 8,850 crore (USD 1.06 billion) in equity and warrants.  
The strategic inflow from the well-capitalized, sovereign-linked IHC provides a massive de-risking event, validates Sammaan's new-book strategy, and signals a powerful new stream of capital flows into Indian HFC/NBFC space.  
The scale, strategic nature, and pricing of the deal position Sammaan for a significant re-rating, shifting the investment thesis from asset quality clean-up to funded growth.


Sammaan Capital: Is Abu Dhabi’s $1.06 Billion Bet the Start of a New Era?

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

India’s non-banking finance company (NBFC), <a href="https://www.smartkarma.com/entities/15425" target="_blank" data-smartkarma-citation="entities:15425:1">Muthoot Finance (MUTH IN; "MTF")</a>, lends against gold, arguably the best collateral of all. Its gold jewelry kept as security is up from 147 tons to 166 tons, from December 2016 to December 2018. This may be one reason that the company’s bad loans are low, not only in an India context, but in Asia. Its stage three loans surged after demonetization peaking in December 2017 at INR21.5bn. Since then, figures have fallen sharply, to INR6.4bn as at December 2018. As a percentage of loans, stage three loans declined from 7.6% to 2.0% over this period. With credit costs and write-offs down 96% during 9M19 YoY, credit metrics appear healthy.

India’s non-banking finance company (NBFC), Muthoot Finance (MUTH IN; "MTF"), lends against gold, arguably the best collateral of all. Its gold jewelry kept as security is up from 147 tons to 166 tons, from December 2016 to December 2018. This may be one reason that the company’s bad loans are low, not only in an India context, but in Asia. Its stage three loans surged after demonetization peaking in December 2017 at INR21.5bn. Since then, figures have fallen sharply, to INR6.4bn as at December 2018. As a percentage of loans, stage three loans declined from 7.6% to 2.0% over this period. With credit costs and write-offs down 96% during 9M19 YoY, credit metrics appear healthy.

Muthoot Finance – Top ROA Lender, with 116 Tons of Gold!

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC 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

Asirvad Micro Finance Limited / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/asirvad-micro-finance-limited" target="_blank" data-smartkarma-citation="entities:40211:1" rel="noopener">Asirvad Micro Finance Limited (1053198D IN)</a> is looking to raise around US$183m in its upcoming India IPO.</li>
<li>Asirvad Micro Finance Limited (Asirvad) is a non-banking finance company (NBFC), and a microfinance institution (MFI) offering small loans to low-income women in India.</li>
<li>In this note, we talk about the company’s historical performance.</li>
</ul>



Asirvad Micro Finance Limited (1053198D IN) is looking to raise around US$183m in its upcoming India IPO.
Asirvad Micro Finance Limited (Asirvad) is a non-banking finance company (NBFC), and a microfinance institution (MFI) offering small loans to low-income women in India.
In this note, we talk about the company’s historical performance.


Asirvad Micro Finance Pre-IPO - Accelerating Profitability Growth but with a Litany of Legal Cases

India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

<ul>
<li>
<a href="https://www.smartkarma.com/entities/indiabulls-housing-finance-ltd" target="_blank" data-smartkarma-citation="entities:13086:1" rel="noopener">Indiabulls Housing Finance (IHFL IN)</a> Raised INR 3,693 crores through rights issue, issued $350 million bond.</li>
<li>Strong balance sheet, low NPAs, poised for growth in the retail housing via its asset light model.</li>
<li>Rebranding to Samman Capital signals new phase of the company with multi-year growth guidance.</li>
</ul>



Indiabulls Housing Finance (IHFL IN) Raised INR 3,693 crores through rights issue, issued $350 million bond.
Strong balance sheet, low NPAs, poised for growth in the retail housing via its asset light model.
Rebranding to Samman Capital signals new phase of the company with multi-year growth guidance.


The Beat Ideas: Indiabulls Housing- A New Era in Housing Finance

India

Sammaan Capital Limited is a mortgage-focused non-banking financial company. The Company offers housing loans to salaried and self-employed individuals for construction, purchase, renovation, and reconstruction of houses, as well as business loans to MSMEs, self-employed individuals, and proprietorships for working capital or business expansion. Sammaan Capital operates in India.

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Sammaan Capital (SAMMAANC IN)

Sammaan Capital: Can Capital Boost from Abu Dhabi Turnaround Its Fortunes?

Sammaan Capital has secured $1bn in capital support from Abu Dhabi-backed IHC, creating a potential for re-rating. However, there are material...

Himanshu Dugar

Sammaan Capital: Is Abu Dhabi’s $1.06 Billion Bet the Start of a New Era?

Sammaan Capital secures $1.06 billion investment from Abu Dhabi's IHC, signaling a new era of growth and re-rating potential in the Indian HFC...

Nimish Maheshwari

Muthoot Finance – Top ROA Lender, with 116 Tons of Gold!

Muthoot Finance lends based on gold collateral, with gold prices so much higher now than in the past, there is far less likelihood of defaults. The...

Daniel Tabbush

Asirvad Micro Finance Pre-IPO - Accelerating Profitability Growth but with a Litany of Legal Cases

Asirvad Micro Finance Limited (1053198D IN) is looking to raise around US$183m in its upcoming India IPO. In this note, we talk about the company’s...

Ethan Aw

The Beat Ideas: Indiabulls Housing- A New Era in Housing Finance

Indiabulls Housing as said mentioned in our previous coverage is on the verge of completion of de - promoterization, has announced its new identity...

Sudarshan Bhandari

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Sammaan Capital: Can Capital Boost from Abu Dhabi Turnaround Its Fortunes?

​Sammaan Capital has secured $1bn in capital support from Abu Dhabi-backed IHC, creating a potential for re-rating. However, there are material...

Himanshu Dugar

Sammaan Capital: Is Abu Dhabi’s $1.06 Billion Bet the Start of a New Era?

​Sammaan Capital secures $1.06 billion investment from Abu Dhabi's IHC, signaling a new era of growth and re-rating potential in the Indian HFC...

Nimish Maheshwari

Muthoot Finance – Top ROA Lender, with 116 Tons of Gold!

Muthoot Finance lends based on gold collateral, with gold prices so much higher now than in the past, there is far less likelihood of defaults. The...

Daniel Tabbush

Asirvad Micro Finance Pre-IPO - Accelerating Profitability Growth but with a Litany of Legal Cases

Asirvad Micro Finance Limited (1053198D IN) is looking to raise around US$183m in its upcoming India IPO. In this note, we talk about the company’s...

Ethan Aw

The Beat Ideas: Indiabulls Housing- A New Era in Housing Finance

Indiabulls Housing as said mentioned in our previous coverage is on the verge of completion of de - promoterization, has announced its new identity...

Sudarshan Bhandari

Sammaan Capital has secured $1bn in capital support from Abu Dhabi-backed IHC, creating a potential for re-rating. However, there are material...

Sammaan Capital secures $1.06 billion investment from Abu Dhabi's IHC, signaling a new era of growth and re-rating potential in the Indian HFC...