Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

In 2016, a Blackstone fund purchased 60.5% of India-based IT Solutions Provider <a href="https://www.smartkarma.com/entities/mphasis-ltd" target="_blank" data-smartkarma-citation="entities:7672:1" rel="noopener">Mphasis Ltd (MPHL IN)</a> from Hewlett Packard (which had been looking to sell its stake for quite a while after having purchased it in 2008 when it bought out EDS) at Rs 430/share, then conducted an Open Offer to buy more shares at Rs 457 and change. The deal was to purchase 106.2mm shares from the sellers and another 26% or 54.93mm shares via an Open Offer, and if no shares were acquired in the Open Offer, the Blackstone fund would buy the other 20.9mm shares from the HPE entity selling and HPE would own no more shares. 
When the deal was announced, the price was just below Rs 500/share and during the course of the summer the price rose further so that the Open Offer at the time obtained only 0.001% of shares out. 
The shares rose, doubling reasonably quickly as Blackstone quickly revamped operations. Over the years, Blackstone opportunistically bought and sold small slices of the company in market operations. Late last year, it became clear that Blackstone was weighing the possibility of selling its 56.16% stake in the company as the valuation had run and shares were three times where they were when they bought. There were suggestions it might also be related to the possible departure of Blackstone India senior managing director Amit Jain who was rumored to be quitting to take up the co-head spot at Carlyle India. By January, seller due diligence had been conducted, banks were engaged, and Blackstone was en route to selling its stake (and the Buyer would be liable to launch an Open Offer) in its largest India investment to date to one of the four PE houses which were expected to put in bids - Brookfield, Bain, Carlyle, and Permira. 
Final round bids were due 24 February and by early March, the sale had been called off as the prospective lead buyer Carlyle and Blackstone as seller couldn't come to terms.
Today, we have a deal. But it's not Carlyle.
Blackstone is selling to Blackstone.

In 2016, a Blackstone fund purchased 60.5% of India-based IT Solutions Provider Mphasis Ltd (MPHL IN) from Hewlett Packard (which had been looking to sell its stake for quite a while after having purchased it in 2008 when it bought out EDS) at Rs 430/share, then conducted an Open Offer to buy more shares at Rs 457 and change. The deal was to purchase 106.2mm shares from the sellers and another 26% or 54.93mm shares via an Open Offer, and if no shares were acquired in the Open Offer, the Blackstone fund would buy the other 20.9mm shares from the HPE entity selling and HPE would own no more shares. 
When the deal was announced, the price was just below Rs 500/share and during the course of the summer the price rose further so that the Open Offer at the time obtained only 0.001% of shares out. 
The shares rose, doubling reasonably quickly as Blackstone quickly revamped operations. Over the years, Blackstone opportunistically bought and sold small slices of the company in market operations. Late last year, it became clear that Blackstone was weighing the possibility of selling its 56.16% stake in the company as the valuation had run and shares were three times where they were when they bought. There were suggestions it might also be related to the possible departure of Blackstone India senior managing director Amit Jain who was rumored to be quitting to take up the co-head spot at Carlyle India. By January, seller due diligence had been conducted, banks were engaged, and Blackstone was en route to selling its stake (and the Buyer would be liable to launch an Open Offer) in its largest India investment to date to one of the four PE houses which were expected to put in bids - Brookfield, Bain, Carlyle, and Permira. 
Final round bids were due 24 February and by early March, the sale had been called off as the prospective lead buyer Carlyle and Blackstone as seller couldn't come to terms.
Today, we have a deal. But it's not Carlyle.
Blackstone is selling to Blackstone. 

Blackstone Sells Mphasis Stake To.... Blackstone and Investors Get a CHEAP Option

Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Equity Bottom-Up

Tata Consultancy Services / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/tata-consultancy-svcs-ltd" target="_blank" data-smartkarma-citation="entities:18708:1" rel="noopener">Tata Consultancy Svcs (TCS IN)</a> reported its Q4FY21 earnings. Optically, it reported strong growth but the devil lies in the details. There is not much to cheer about! Adjusted for TCS' inorganic captive acquisitions, the growth appears to be moderate. All that is there to cheer about, is already priced in. While the Digital Transformation and Cloud Services segments no doubt present a long runway for growth, the current valuation seems to be already pricing this in.

Tata Consultancy Svcs (TCS IN) reported its Q4FY21 earnings. Optically, it reported strong growth but the devil lies in the details. There is not much to cheer about! Adjusted for TCS' inorganic captive acquisitions, the growth appears to be moderate. All that is there to cheer about, is already priced in. While the Digital Transformation and Cloud Services segments no doubt present a long runway for growth, the current valuation seems to be already pricing this in. 

TCS: Organic Growth Was Moderate, Not Much to Cheer About!

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

Lodha Developers / Equity Capital Markets

Macrotech Developers (Lodha) aims to raise around US$345m in its India IPO. It is the largest real estate developer in India, by residential sales over FY14-20. In FY20, it had a share of 24% of total supply (by units), 32% of total absorption (by units) and 46% of total absorption (by value) in the Top Seven Indian Markets. Lodha is primarily a residential developer with most of its operations restricted to the Mumbai Metropolitan Region (MMR). It has projects across the value spectrum from the affordable segment to ultra-luxury high-end residential projects. As of Dec 2020, it had completed 91 projects with a developable area of 77.22m sqft. As of Dec 2020, it also had 36 ongoing and 18 planned projects in India with a developable area of 28.78m sqft and 45.08m sqft, respectively.This will be the company’s third listing attempt, after 2009/10 and 2018. The size of the deal is expected to be much smaller as well versus the US$800m that it was hoping to raise in 2018. We have looked at its previous listing attempt in our prior note, <a href="https://www.smartkarma.com/insights/lodha-developers-pre-ipo-second-time-lucky-but-not-really-that-much-affordable" target="_blank" rel="noopener">Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable</a> . We covered the details of the current attempt in <a href="https://www.smartkarma.com/insights/macrotech-lodha-developers-pre-ipo-new-name-but-up-to-some-of-the-same-old-tricks" target="_blank" rel="noopener">Macrotech (Lodha) developers Pre-IPO - New name but up to some of the same old tricks</a>.In this note, we will talk about the valuations.

Macrotech Developers (Lodha) aims to raise around US$345m in its India IPO. It is the largest real estate developer in India, by residential sales over FY14-20. In FY20, it had a share of 24% of total supply (by units), 32% of total absorption (by units) and 46% of total absorption (by value) in the Top Seven Indian Markets. Lodha is primarily a residential developer with most of its operations restricted to the Mumbai Metropolitan Region (MMR). It has projects across the value spectrum from the affordable segment to ultra-luxury high-end residential projects. As of Dec 2020, it had completed 91 projects with a developable area of 77.22m sqft. As of Dec 2020, it also had 36 ongoing and 18 planned projects in India with a developable area of 28.78m sqft and 45.08m sqft, respectively.This will be the company’s third listing attempt, after 2009/10 and 2018. The size of the deal is expected to be much smaller as well versus the US$800m that it was hoping to raise in 2018. We have looked at its previous listing attempt in our prior note, Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable . We covered the details of the current attempt in Macrotech (Lodha) developers Pre-IPO - New name but up to some of the same old tricks.In this note, we will talk about the valuations.

Macrotech (Lodha) Developers IPO - One Too Many Issues

Kalyan Jewellers / Equity Capital Markets

Kalyan Jewellers raise around US$160m via a mix of selling new and existing shares in its Indian IPO. The company was established in 1993 and is backed by Warburg Pincus.We have looked at various aspects of the deal in our previous note, <a href="https://www.smartkarma.com/insights/kalyan-jewellers-pre-ipo-strategy-missteps-led-to-earnings-flatlining" target="_blank" rel="noopener">Kalyan Jewellers Pre-IPO - Strategy missteps led to earnings flatlining </a>and <a href="https://www.smartkarma.com/insights/kalyan-jewellers-ipo-no-glitter" target="_blank" rel="noopener">Kalyan Jewellers IPO - No Glitter</a>.In this note, we'll talk about deal updates and provide a table with implied valuations at different share price levels.

Kalyan Jewellers raise around US$160m via a mix of selling new and existing shares in its Indian IPO. The company was established in 1993 and is backed by Warburg Pincus.We have looked at various aspects of the deal in our previous note, Kalyan Jewellers Pre-IPO - Strategy missteps led to earnings flatlining and Kalyan Jewellers IPO - No Glitter.In this note, we'll talk about deal updates and provide a table with implied valuations at different share price levels.

Kalyan Jewellers IPO Trading - Subdued Demand

HomeFirst Finance / Equity Capital Markets

<div>
Home First Finance (HFF), an affordable housing finance company targeting first time home buyers in low and middle-income groups, raised around US$160m in its India IPO. It is backed by True North, GIC and Bessemer and has recently obtained an investment from Warburg Pincus as well.
</div>
<div>
I have covered various aspects of the deal in my earlier notes,  <a href="https://www.smartkarma.com/insights/home-first-finance-pre-ipo-riding-on-affordable-housing" target="_blank" rel="noopener">Home First Finance Pre-IPO - Riding on affordable housing</a>,  <a href="https://www.smartkarma.com/insights/home-first-finance-pre-ipo-earnings-not-showing-the-covid-strain-but-other-metrics-are" target="_blank" rel="noopener">Home First Finance Pre-IPO - Earnings not showing the COVID strain but other metrics are</a> and <a href="https://www.smartkarma.com/insights/home-first-finance-ipo-it-s-not-really-cheap-banking-on-momentum" target="_blank" rel="noopener">Home First Finance IPO - It’s Not Really Cheap, Banking on Momentum</a>.
In this note, I'll talk about deal updates and provide a table with implied valuations at different share price levels.
</div>


Home First Finance (HFF), an affordable housing finance company targeting first time home buyers in low and middle-income groups, raised around US$160m in its India IPO. It is backed by True North, GIC and Bessemer and has recently obtained an investment from Warburg Pincus as well.


I have covered various aspects of the deal in my earlier notes,  Home First Finance Pre-IPO - Riding on affordable housing,  Home First Finance Pre-IPO - Earnings not showing the COVID strain but other metrics are and Home First Finance IPO - It’s Not Really Cheap, Banking on Momentum.
In this note, I'll talk about deal updates and provide a table with implied valuations at different share price levels.


Home First Finance IPO Trading - Hot Space but Limited Discount

India

Tata Consultancy Services (TCS) is an Indian multinational information technology (IT) services and consulting company. It offers a comprehensive portfolio of services including IT infrastructure services, engineering and industrial services, business intelligence, and cloud services, along with various business solutions to multiple industries. TCS is headquartered in Mumbai, Maharashtra, India, and was founded in 1968.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Tata Consultancy Services (TCS IN)

Blackstone Sells Mphasis Stake To.... Blackstone and Investors Get a CHEAP Option

Blackstone is selling its large stake in Mphasis purchased in 2016 to another Blackstone consortium. Price is 3% below here. There may be a 2% div...

Travis Lundy

TCS: Organic Growth Was Moderate, Not Much to Cheer About!

TCS reported its Q4FY21 earnings. Optically, it reported strong growth but the devil is in the details. There is not much to cheer about! All that...

Ankit Agrawal, CFA

Macrotech (Lodha) Developers IPO - One Too Many Issues

Macrotech Developers (Lodha) aims to raise around US$345m in its India IPO. It is the largest real estate developer in India, by residential sales...

Sumeet Singh

Kalyan Jewellers IPO Trading - Subdued Demand

Kalyan Jewellers raise around US$160m via a mix of selling new and existing shares in its Indian IPO. In this note, we'll talk about deal updates.

Sumeet Singh

Home First Finance IPO Trading - Hot Space but Limited Discount

Home First Finance, an affordable housing finance company targeting first time home buyers in low and middle-income groups, raised around US$160m...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)