APAC IPOs & Placements, Aequitas Research

Clarence Chu

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

Fedbank Financial Services / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fedbank-financial-services" target="_blank" data-smartkarma-citation="entities:40010:1" rel="noopener">Fedbank Financial Services (0702066D IN)</a> is looking to raise about US$130m in its India IPO.</li>
<li>Fedbank Financial Services (Fedbank) is a retail-focused non-banking finance company (NBFC) promoted by The Federal Bank Limited.</li>
<li>In this note, we will look at past performance, and share our thoughts on valuation.</li>
</ul>



Fedbank Financial Services (0702066D IN) is looking to raise about US$130m in its India IPO.
Fedbank Financial Services (Fedbank) is a retail-focused non-banking finance company (NBFC) promoted by The Federal Bank Limited.
In this note, we will look at past performance, and share our thoughts on valuation.


Fedbank Financial IPO - Strong Sector Momentum, but This One Doesn’t Seem Particularly Compelling

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>The company reported strong disbursement growth of 35/7% YoY/QoQ, translating into healthy growth in the advances of 25/8% YoY/QoQ.</li><li>Concurrently, NII grew by 17/9% YoY/QoQ. Other income reported strong growth of 33%/38% YoY/QoQ, largely driven by the fee income (up 10% YoY) and dividend income (up 47% YoY).</li><li>Opex increased by 19/8% YoY/QoQ, primarily driven by an uptick in other expenses which grew by 21/17% YoY/QoQ. The C-I ratio improved to 31.2% from 34.1% in Q1FY24.</li></ul>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.

The company reported strong disbursement growth of 35/7% YoY/QoQ, translating into healthy growth in the advances of 25/8% YoY/QoQ.Concurrently, NII grew by 17/9% YoY/QoQ. Other income reported strong growth of 33%/38% YoY/QoQ, largely driven by the fee income (up 10% YoY) and dividend income (up 47% YoY).Opex increased by 19/8% YoY/QoQ, primarily driven by an uptick in other expenses which grew by 21/17% YoY/QoQ. The C-I ratio improved to 31.2% from 34.1% in Q1FY24.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.

Sundaram Finance - Strong Disbursements Supported by Asset Quality Improvement.

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Five Star Business Finance / Equity Capital Markets

<ul>
<li>Three PE investors are looking to raise up to US$158m via selling 5.9% of <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 (FIVESTAR IN)</a> (FSB).</li>
<li>Five-Star Business is a non-banking financial company that provides secured business loans to micro-entrepreneurs and self-employed individuals. FSB had raised around US$190m in its India IPO in Nov 2022.</li>
<li>In this note, we will talk about the deal dynamics and updates since our last note.</li>
</ul>


Three PE investors are looking to raise up to US$158m via selling 5.9% of Five Star Business Finance (FIVESTAR IN) (FSB).
Five-Star Business is a non-banking financial company that provides secured business loans to micro-entrepreneurs and self-employed individuals. FSB had raised around US$190m in its India IPO in Nov 2022.
In this note, we will talk about the deal dynamics and updates since our last note.


Five Star Placement - Well Flagged but Have a Lot More Stock to Get Through

Thematic (Sector/Industry)

<ul><li>Healthy AUM growth: The NBFCs under our coverage reported healthy AUM growth led by strong demand across segments.</li><li>Owing to seasonal weakness, disbursements for most financiers (ex-Vehicle financiers) moderated on a QoQ basis.</li><li>Management commentary on growth momentum sustaining is reassuring.</li></ul>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.

Healthy AUM growth: The NBFCs under our coverage reported healthy AUM growth led by strong demand across segments.Owing to seasonal weakness, disbursements for most financiers (ex-Vehicle financiers) moderated on a QoQ basis.Management commentary on growth momentum sustaining is reassuring.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.

Top Sector Ideas - Banking, Financial Services and Insurance (BFSI)

<ul><li>Disbursements reported robust growth of 58% YoY, translating into healthy growth in the advances of 17/3% YoY/QoQ.</li><li>Concurrently, NII grew by 5% YoY but de-grew by 2% QoQ. Other income reported strong growth of 44.6%/61.3% YoY/QoQ.</li><li>With employee expenses remaining muted, Opex grew marginally by 3% YoY whereas declined by 2% QoQ. The CI ratio improved to 31.4% vs. 35.6% in Q3FY23.</li></ul>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.

Disbursements reported robust growth of 58% YoY, translating into healthy growth in the advances of 17/3% YoY/QoQ.Concurrently, NII grew by 5% YoY but de-grew by 2% QoQ. Other income reported strong growth of 44.6%/61.3% YoY/QoQ.With employee expenses remaining muted, Opex grew marginally by 3% YoY whereas declined by 2% QoQ. The CI ratio improved to 31.4% vs. 35.6% in Q3FY23.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.

Sundaram Finance - Robust Growth in AUM; Maintain BUY

India

Sundaram Finance Ltd., together with its subsidiaries, provides various financial products and services in India. The Company offers savings products, car and commercial vehicle finance, insurance products, home loans and logistics services. Sundaram is based in Chennai, India.

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Sundaram Finance (SUF IN)

Fedbank Financial IPO - Strong Sector Momentum, but This One Doesn’t Seem Particularly Compelling

Fedbank Financial Services (0702066D IN) is looking to raise about US$130m in its India IPO. In this note, we will look at past performance, and...

Clarence Chu

Sundaram Finance - Strong Disbursements Supported by Asset Quality Improvement.

The company reported strong disbursement growth of 35/7% YoY/QoQ, translating into healthy growth in the advances of 25/8% YoY/QoQ.

Axis Direct

Five Star Placement - Well Flagged but Have a Lot More Stock to Get Through

Three PE investors are looking to raise up to US$158m via selling 5.9% of Five Star Business Finance (FIVESTAR IN) (FSB). In this note, we talk...

Sumeet Singh

Top Sector Ideas - Banking, Financial Services and Insurance (BFSI)

The NBFCs under our coverage reported healthy AUM growth led by strong demand across segments .Owing to seasonal weakness, disbursements for most...

Axis Direct

Sundaram Finance - Robust Growth in AUM; Maintain BUY

With employee expenses remaining muted, Opex grew marginally by 3% YoY whereas declined by 2% QoQ. The CI ratio improved to 31.4% vs. 35.6% in Q3FY23.

Axis Direct

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