Daily Brief India: AU Small Finance Bank Limited, ICICI Prudential Life Insurance, Meesho, Swiggy, Wakefit Innovations, ICICI Prudential AMC, Kaynes Technology India, InterGlobe Aviation Ltd, Ashok Leyland, Sona Blw Precision Forgings Lt and more

• AU Small Finance Bank Limited (AUBANK IN) has received approval from the Ministry of Finance to increase its Foreign Ownership Limit from 49% to 74% (the maximum permitted).
• The increased FOL will result in passive inflows from global index trackers in February and March. The inflows are multiple days of ADV.
• There has been little increase in positioning. The increased Foreign Ownership Limit and the passive flows to come could lead to the stock moving higher over the next few weeks.

• ICICI Prudential AMC is looking to raise about US$1.2bn in its upcoming India IPO.
• IPru AMC is an asset management company involved in managing mutual funds, providing portfolio management services, managing alternative investment funds, and providing advisory services to offshore clients.
• We have looked at the past performance in our previous note. In this note, we talk about the RHP updates and valuations.

• Meesho (1546271D IN) raised around US$606m in its India IPO.
• Meesho is an e-commerce marketplace, offering a wide assortment of products ranging from low cost unbranded products, regional and national brands at affordable prices to consumers.
• We have looked at the past performance in our previous note. In this note, we talk about the trading dynamics.

• Swiggy (SWIGGY IN)  and Eternal (ETERNAL IN)  are in heavy investment cycles, with quick commerce driving capital needs and dictating near-term unit economics across India’s hyper competitive hyperlocal ecosystem.
• Swiggy shows clearer visibility to margin recovery by June 2026, while Eternal offers faster growth but higher dependence on marketing, inventory execution, and store expansion.
• Meituan (3690 HK) appears optically cheap but faces delayed profitability amid intense competition and overseas losses, making its lower-growth profile less attractive versus Indian peers.

• Wakefit Innovations (1684049D IN) is looking to raise up to US$144m in its upcoming India IPO. 
• Wakefit Innovations is a direct‑to‑consumer sleep and home‑solutions company, founded in 2016. 
• We have looked at the company’s past performance in our previous note. In this note, we talk about valuations.

• ICICI Prudential AMC is the largest asset management company in India in terms of active mutual fund QAAUM with a market share of 13.3% as of Sept 2025.
• It manages a massive INR 10.15 trillion (active) in Mutual Fund QAAUM, driven by a diversified product suite and a robust distribution network.
• The company reported a Profit After Tax (PAT) of INR 26.5 billion for FY25, with a strong Return on Equity (RoE) of 82.8%.

• Kaynes Technology clarified financial disclosures, acquisition accounting, and a related-party reporting lapse, while affirming consolidated accuracy and enhancing internal controls and auditor oversight.
• Despite volatility, Kaynes’ strategic investments in OSAT, PCB, and design-led electronics support long-term growth, with recent share correction viewed as sentiment-based, presenting a valuation opportunity.
• Tightened governance, expanding capacity, and strong demand in key sectors position Kaynes for medium-term growth, offering investors an attractive risk-reward in India’s electronics supply chain evolution.

• InterGlobe Aviation (IndiGo) is the undisputed market leader in the Indian aviation sector, commanding a domestic market share of over 60%. Its disciplined low-cost carrier (LCC) model, focus on operational efficiency, and a single-type aircraft fleet have provided a significant cost advantage.
• The company is poised for significant growth, driven by a burgeoning Indian middle class and ambitious international expansion plans. A massive order book for new aircraft, including next-generation A321XLRs and A350s, underpins its strategy to increase its international capacity share from 28% to 40% by 2030.
• Key risks to the outlook include the inherent volatility of jet fuel prices and currency exchange rates, intense competition within the Indian market, and execution risks associated with its large-scale expansion. Recent operational disruptions have also highlighted challenges in managing its rapid growth.

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• Ashok Leyland (AL IN) enters 2026 with strong momentum. This insight discusses the various factors that benefit the company and what will drive the margins ahead.
• Also discussed in this note are details about company’s R&D initiatives to reduce cyclicality and strengthen earnings quality. 
• Finally, we discuss about valuation and the potential upside from its core business and soon to be listed – Hinduja Leyland Finance.

• Strong Q2 FY26 performance was driven by the accretive Railways division and domestic EV traction motors, effectively offsetting the deceleration from a major global BEV customer.  
• The bankruptcy of three core European competitors has unlocked a substantial INR 2,500-3,000 crore opportunity, accelerating the potential for significant international market share gain and geographic de-risking. 
• The pivot into Railways, Rare Earth-Free Motors, and advanced robotics reinforces a high-visibility, multi-year growth runway that transcends near-term EV cyclicality and justifies its premium valuation.