In today’s briefing:
- Aditya Birla Sun Life AMC OFS – Share Price Has Corrected in Anticipation of the Current Deal
- Edelweiss: Scaling Up Well
- Baazar Style Retail Limited Pre-IPO Tear Sheet
- Nuvama: Stellar Growth Continues
Aditya Birla Sun Life AMC OFS – Share Price Has Corrected in Anticipation of the Current Deal
- Promoters in Aditya Birla Sun Life AMC (ABSLAMC IN) are looking to raise US$189m via an offer for sale (OFS). This assumes that the over-allotment option is exercised.
- This appears to be done in a bid to meet SEBI’s 75% free-float requirement for listed firms in India. .
- News of the selldown had surfaced a week earlier leading to a correction in share price. As such, we would argue that the deal here is well flagged
Edelweiss: Scaling Up Well
- Edelweiss Financial Services (“Edelweiss”) reported a steady Q3FY24 led by robust profitability from across businesses except insurance, which is in gestation phase. All its businesses are scaling up well.
- Edelweiss’ credit business reported good traction in co-lending. 80% and 32% of the disbursals in the NBFC and the HFC businesses, respectively, came from co-lending.
- Within the asset management vertical, the mutual fund business is growing well with 23% YoY growth in overall AUM and 47% YoY growth in equity AUM.
Baazar Style Retail Limited Pre-IPO Tear Sheet
- Baazar Style Retail (1635104D IN) is the fastest growing value retailer in eastern and north- eastern India, with market leadership in West Bengal, Odisha, and Assam.
- The proposed IPO is a combination of fresh issue of equity shares worth INR1,850M and OFS of up to 16.9M equity shares by promoter group entities and other selling shareholders.
- The company may consider raising INR370M in a pre-IPO placement round. If the pre-IPO placement is undertaken, the amount raised from such placement will be reduced from the fresh issue.
Nuvama: Stellar Growth Continues
- Nuvama Wealth Management (“Nuvama”) has been seeing strong growth across all its businesses. Wealth management business is scaling up well. Capital markets business continues to benefit from the upbeat cycle.
- The asset management business is in its infancy but is scaling up well. Nuvama launched a new real estate fund via a 50:50 JV with Cushman & Wakefield.
- Given wealth management is still nascent in India; the growth potential is huge for Nuvama. At the current valuation, an investment in Nuvama has potential to more than triple.
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