In today’s briefing:
- Fortis Healthcare (FORH IN): Indian Regulators Cleared Long-Awaited Open Offer of IHH
- WeWork India IPO Trading – Muted Demand, Likely to Trade Weak
- Trent Ltd (TRENT IN): Down 45% from Peak. Why Is It Trending Down?
- Rubicon Research IPO – RHP Updates, Peer Comp and Thoughts on Valuation
- Maruti Suzuki’s Resurgence: Winning with SUVs and a Timely Tax Break
- IGL: Strategic Advantages in Tax and Crude Price Lead to Higher Profit Growth
- Canara Robeco AMC: Can a Laggard Get off the Block Now?
- BlackBuck Ltd: Digitizing India’s Fragmented Trucking Ecosystem with Dominant Platform Position
- Aequs Ltd Pre-IPO Tearsheet
Fortis Healthcare (FORH IN): Indian Regulators Cleared Long-Awaited Open Offer of IHH
- SEBI has approved IHH Healthcare’s open offer for acquisition of up to 26% stake in Fortis Healthcare (FORH IN). If materializes, this should uplift IHH’s holding in Fortis to 57%.
- In 2018, Fortis’ original open offer price was INR170 per share, and the offer size was INR33B. Currently, Fortis share is trading at INR1,054, up more than 6x since 2018.
- IHH will make appropriate announcement ‘in a timely manner’, which should provide clarity on open offer pricing. Unless an attractive revised price is announced, the shareholders acceptance will be limited.
WeWork India IPO Trading – Muted Demand, Likely to Trade Weak
- WeWork India Management Ltd (1690124D IN) raised about US$338m in its India IPO.
- 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.
- We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.
Trent Ltd (TRENT IN): Down 45% from Peak. Why Is It Trending Down?
- Trent Ltd (TRENT IN) reported first half FY2026 revenue growth at 19%, well below the Street’s full-year consensus estimate of around 26%.
- With Zudio store expansion wave now maturing and no new growth engine of comparable scale yet in sight, revenue growth appears to be normalizing to the low double-digit range.
- In this context, the stock’s steep valuation multiples (78.5x 1-year forward P/E) look increasingly difficult to justify; as growth expectations are recalibrated a valuation de-rating seems likely.
Rubicon Research IPO – RHP Updates, Peer Comp and Thoughts on Valuation
- Rubicon Research Limited (1453591D IN) is looking to raise about US$155m in its India IPO.
- RR’s has shown strong FY25–1Q26 growth, driven by expanding product launches, ANDA approvals, and higher US market penetration, while margins improved with operating leverage and lower R&D intensity.
- In our earlier notes, we have looked at the company’s past performance. In this note, we talk about the RHP updates, peer comp and implied valuations in the price range.
Maruti Suzuki’s Resurgence: Winning with SUVs and a Timely Tax Break
- MSIL decisively shifted to UVs, reaching a 41% segment share in FY25 via key launches (Brezza, Grand Vitara), fundamentally reversing market share losses to become a full-range powerhouse.
- The revised GST flat rate of 40% for SUVs reduces prices and boosts affordability, creating a powerful dual catalyst with the festive season for significant volume and market share growth.
- Strong exports grew by 17.5%, establishing MSIL as the parent’s global EV hub and mitigating local risks, while high EBITDA margins (~13%) ensure profitable and sustainable growth.
IGL: Strategic Advantages in Tax and Crude Price Lead to Higher Profit Growth
- IGL is set for a significant margin boost from a VAT reduction on Gujarat-sourced gas, the new PNGRB two-zone tariff, and lower crude-linked input costs
- The reduced VAT, new tariff structure, and falling oil prices position IGL for significant margin growth, potentially boosting PAT by 8-15% in the coming years.
- Favorable regulatory changes and reduced raw material costs create a clear pathway for IGL to achieve its higher EBITDA per SCM guidance and sustain robust volume growth.
Canara Robeco AMC: Can a Laggard Get off the Block Now?
- Canara Robeco AMC (570515Z IN) a JV between Canara Bank (CBK IN) and Orix Corp (8591 JP) is the second oldest but the latest AMC to list in India
- A laggard with just 1.5% market share as of date, the company boasts of an equity-dominant AUM and strong retail franchise delivering strong PAT margins (47%) and ROE (36%)
- However, its SIP book has been declining while the broader industry has more than doubled. We feel the IPO pricing doesn’t leave room for material upside.
BlackBuck Ltd: Digitizing India’s Fragmented Trucking Ecosystem with Dominant Platform Position
- BlackBuck operates in India’s highly fragmented trucking ecosystem, targeting the digitization of this traditional sector.
- The company functions as a digital platform that connects various stakeholders in the trucking industry.
- BlackBuck has established a dominant position in the Indian logistics technology space through its platform approach.
Aequs Ltd Pre-IPO Tearsheet
- Aequs Ltd is looking to raise about US$200m in its upcoming India IPO. The deal will be run by JM Financial, IIFL Capital and Kotak.
- Aequs Limited is a precision-engineering and manufacturing company that produces complex, high-tolerance components for global OEMs across the aerospace and consumer sectors.
- The company operates three integrated manufacturing ecosystems in India (the Belagavi, Hubballi, and Koppal clusters) each designed to deliver end-to-end production capabilities from design to assembly.
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