In today’s briefing:
- What Arb Trading Opportunities Should We Target in SK Innovation’s Rights Offering?
- Jericho Energy Ventures (JEV CN) : H2U Announces Successful Demonstration
- HDFC/HDFC Bank Mega Merger: Are We There Yet?
- Sequoia India Leads $5.7m Round for Climate Tech Startup Newtrace
What Arb Trading Opportunities Should We Target in SK Innovation’s Rights Offering?
- We should seize the arbitrage trading opportunities between SSF and subscription rights during the rights trading window. SK Innovation’s SSF is highly liquid, being traded at nearly 0.5x spot.
- The key is to catch the timing of basis widening. SK Innovation traditionally experiences significant intraday basis fluctuations, making it a crucial factor in maximizing our profitability.
- The ex-date play, betting on the tendency for prices to close above the base price on the ex-date, may not hold significant appeal. This pattern has become less pronounced recently.
Jericho Energy Ventures (JEV CN) : H2U Announces Successful Demonstration
- Jericho’s portfolio company, H2U announced a successful demonstration of its non-iridium PEM electrolyzer for commercial hydrogen production.
- PEM electrolyzers currently rely on iridium catalysts, which poses scarcity and supply-chain threats to the green hydrogen industry.
- The demonstration provides additional datapoints that can help further validate the durability and performance of novel non-iridium catalysts at commercial scale.
HDFC/HDFC Bank Mega Merger: Are We There Yet?
- An interview with Deepak Parekh set a bunch of stocks on fire. Then came the HDFC Bank (HDFCB IN) exchange announcement that said the dates were still tentative.
- Indications are that the merger could be effective 1 July and HDFC Limited (HDFC IN)‘s last trading day would be 13 July.
- The merger will have an impact on both HDFC stocks and on other stocks that could be added to the NIFTY Index, NIFTYJR INDEX and SENSEX Index.
Sequoia India Leads $5.7m Round for Climate Tech Startup Newtrace
- Demand for green hydrogen – or hydrogen that is generated by renewable energy – is expected to climb in the coming years as governments push for a cleaner future.
- Newtrace, a climate tech firm based in India, is developing a new type of electrolyzer, which is used to create green hydrogen from renewable electricity.
- The company says its electrolyzers have lower costs and higher efficiency than what is commonly used in the market.
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