Daily Brief India: ReNew Energy Global, HDFC Bank, NESCO, United Spirits, Prime Focus, Sumeet Industries and more

• Beginning December 2024, a consortium comprising CPP, ADIA, Sumant Sinha, and Masdar, thrice bid for ReNew Energy Global (RNW US), before mysteriously walking away in December 2025.
• On the 29th May, CPP and Sumant Sinha, collectively holding ~50%, returned with a US$6.75/share NBIO, then bumping to US$7.02/share. The prior consortium had bid up to US$8.15/share.
• Terms appeared underwhelming. (Not?) Surprisingly Renew Energy opted to enter into a “definitive transaction agreement”. Form 6-K has been issued. The IFA says fair. No EGM date currently tabled.

• HDFC Bank ownership has fallen from 51.4% to 40.6% of active funds since December, with $3.2bn of outflows and holdings halving to $9.3bn.
• The selling spans every mandate: Asia ex-Japan and ACWI ex-USA ownership both fell 17.3 points, with net sellers dominating GEM and Global funds too.
• A cooling on India amid the AI trade likely triggered it, but investors staying in India are switching to ICICI Bank and SBI.

• With 100% occupancy in Tower 3 and Tower 4, Nesco continues to generate steady revenue of INR 98cr+ and EBIT of INR 80cr+ per quarter.
• Q1 tends to be seasonally weak for exhibitions (BEC), thus QoQ comparison is not relevant. YoY BEC revenue and EBIT grew 10% YoY to INR 44cr+ and INR 22cr+, respectively.
• The Foods business continues to maintain its growth momentum with revenue up 20%+. Work has commenced on 4 sites on Hyderabad-Vishakapatnam expressway for wayside amenities.

• The Board wiped out a historic INR 1,238 crore loan to United Breweries (Holdings) Limited (UBHL) in March 2026, abandoning INR 1,343 crore in unrecognised interest.
• Auditors have maintained an ‘Emphasis of Matter’ regarding fund diversions to the former non-executive Chairman’s entities for six consecutive years.
• The SFIO launched a formal inquiry in FY2026 into historic fund diversions, signaling that legacy regulatory risks are far from resolved despite recent settlements with the MCA.

• Prime Focus-backed Brahma AI has raised USD 150 million in an equity funding round led by Multiples Alternate Asset Management at a USD 2 billion post-money valuation.
• The transaction validates Prime Focus’ strategy of building technology assets around artificial intelligence, content intelligence and digital humans.
• Prime Focus now has two potential growth platforms: DNEG in visual effects and Brahma AI in enterprise AI, though investors must track ownership dilution and monetisation pathways.

• The USD 7.02/share take-private transaction led by CPPIB and Sumant Sinha represents a significant down-round from the defunct USD 8.15/share Masdar-led consortium offer of October 2025, reflecting the valuation discount of US-listed Indian developers compared to domestic peers.
• Grid curtailment and transmission delays present massive operational risks, with a Crisil Ratings March 2026 report warning that over 35 GW of renewable capacity in India faces grid curtailment risk in FY2027, specifically impacting assets under Temporary General Network Access (T-GNA).
• ReNew is highly leveraged, with net debt at INR 671 billion representing a 5.7x net debt-to-EBITDA multiple for operational projects, necessitating an aggressive capital recycling model (such as the INR 4,859 crore Purvah Green Power asset sale in August 2026) to fund intensive capex.

• Post-Insolvency Operational Turnaround: Following its Corporate Insolvency Resolution Process (CIRP) and change in management control under the Eagle Group, Sumeet Industries Limited (SIL) has stabilized core operations, achieving FY2026 revenue of INR 10,504.15M, an expanded gross margin of 18.39%, and a return to positive operating profit (EBITDA margin of 5.46%).
• Strategic Capacity Expansion via Brownfield Acquisition: SIL is expanding its upstream capacity through the INR 23.47 crore acquisition of Nakoda Limited’s polyester chips manufacturing facility in Surat (adding 400 TPD / 146,000 TPA), enhancing vertical integration and reinforcing its competitive positioning within Gujarat’s synthetic textile hub.
• Cyclicality and Cash Flow Constraints: Despite balance-sheet restructuring and debt extinguishment, SIL remains exposed to severe petrochemical raw material spread volatility (PTA/MEG) and working capital intensity, as reflected in FY2026 operating cash flow of -INR 416.05M and ongoing negative free cash generation.

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