Daily Brief Financials: Tata Capital Limited, Edelweiss Financial Services, SK D&D Co Ltd, Minmetals Land, WeWork India Management Ltd, Nuvama Wealth Management, Nippon Life India Asset Management, Virtu Financial Inc Class A, &Do Holdings and more

• Tata Capital Limited (TATACAP IN) is looking to list on the exchanges by selling up to INR155bn (US$1.75bn) of stock at a valuation of around INR 1,384bn (US$15.6bn).
• The stock will not get Fast Entry to either of the global indices. The earliest inclusion in a global index should take place in June 2026.
• The stock should be added to the Large Cap segment in the AMFI Classification in January and to the Nifty Next 50 Index in March.

• In Q1FY26, Edelweiss reported 20% YoY PAT growth.  Edelweiss is growing from strength to strength with its businesses scaling up well. Its insurance and asset management businesses are growing rapidly. 
• During Q1FY26, Edelweiss divested 15% stake in its Mutual Fund business, Edelweiss Asset Management, to WestBridge Capital for INR 450cr, valuing the business at INR 3000cr. 
• YoY, Edelweiss has reduced its consolidated net debt by INR 4845cr (down 31% YoY) and corporate debt by INR 2260cr (down 26% YoY). Corporate debt is now at INR 6350cr.

• Hahn & Co. to buy SK Discovery’s 31.3% stake, launch ₩12,750/share tender for 37.4% float (₩88.8B), fully debt-financed, Oct 1–29.
• SK D&D likely gaps to offer price at open; 95% triggers delisting, but bidder must hit ~85%—tender size is heavy, so success isn’t guaranteed.
• Setup for possible 2nd-round tender; current offer one-third of FY25 BPS, minorities unlikely to bite—trade is positioning for a potential price bump.

• Tata Capital Limited (TATACAP IN) is looking to raise up to US$1.7bn in its upcoming India IPO.
• Tata Capital Limited (TCL) is the flagship financial services company of the Tata group and a subsidiary of Tata Sons Private Limited.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the RHP updates

• Minmetals Land (230 HK) entered a trading halt “pending the release of an announcement in relation to certain inside information and pursuant to the Hong Kong Code on Takeovers and Mergers.“
• It is likely that the controlling shareholder (China Minmetals), representing 61.88% of outstanding shares, is seeking to launch a privatisation through a Bermuda scheme. 
• With a 40% surge in its share price on Monday, Minmetals is trading at a significant premium to book, suggesting limited upside. I estimate a potential offer range of HK$0.54-HK$0.69.

• WeWork India Management Ltd (1690124D IN)  is looking to raise about US$338m in its India IPO. The all-secondary IPO has been downsized from its initial estimated size of about US$407m.
• WeWork India (WWI) offers a wide range of workspace solutions, including custom-designed buildings, floors, and offices; enterprise office suites; private offices; co-working spaces; customized managed offices; and hybrid digital solutions.
• In our earlier notes, we have looked at the company’s past performance. In this note, we talk about the RHP updates.

• Nuvama Wealth Management (“Nuvama”) posted a strong Q1FY26 despite a challenging market environment. Q1FY26 revenue grew 15% YoY and PAT grew 19% YoY led by improved cost efficiency.
• Managed Products and Investment Solutions (MPIS) which is a core focus area for Nuvama Wealth saw strong inflows representing 77% of the INR 2900cr total inflows.
• Even within Nuvama Private, the recurring assets net flows were INR 2900cr+, which on an annualized basis implies a growth of 25%+ YoY.

• Nippon Life India Asset Management (NAM IN) is a leading asset manager in India, well-positioned to capitalize on the structural growth of the country’s financialization of savings, driven by rising incomes and financial literacy.
• The company has demonstrated a strong growth trajectory, consistently gaining market share in high-margin equity AUM and rapidly growing its Systematic Investment Plan (SIP) book, which provides a stable and recurring revenue stream.
• While the outlook is positive, key risks include intense competition from existing players and new entrants, potential pressure on yields from the growing share of lower-fee passive products, and market volatility impacting AUM growth and investor sentiment.

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• Virtu Financial is a premier, technology-driven market maker whose financial performance is intrinsically linked to market volatility and trading volumes. Higher volatility generally leads to wider bid-ask spreads and increased revenue.
• The company faces intense competition from larger, private firms like Citadel Securities and Jane Street, which presents a significant challenge to market share and profitability. Additionally, the high-frequency trading (HFT) industry is subject to significant regulatory scrutiny, posing a persistent risk to its business model, particularly concerning practices like payment-for-order-flow.
• Despite competitive and regulatory pressures, Virtu maintains a highly capital-efficient business model with a strong track record of returning value to shareholders through consistent dividends and share buybacks. Future growth opportunities lie in expansion into new asset classes, such as cryptocurrencies and fixed income, and leveraging its technology for execution services.

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Key points (machine generated)

• And Do Holdings announced a five-year management plan to restructure its business and improve profitability.
• For the fiscal year ending June 2025, the company reported a 4.2% decline in revenues to 64.735 billion yen and a 27% drop in operating profit to 2.62 billion yen.
• The declines were mainly due to lower-than-expected transfers to the HLB fund, affected by reduced purchase contracts in the house leaseback business.

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