Daily Brief India: LG Electronics India, Tata Capital Limited, Edelweiss Financial Services, WeWork India Management Ltd, Nippon Life India Asset Management, Nuvama Wealth Management, Man Industries (India), Jain Resource Recycling, Rajshree Polypack and more

• LG Electronics’ BOD finally approved a plan to sell a 15% stake in LG Electronics India in an IPO to be completed in 2025.
• According to local media, LG Electronics India is now valued at about US$13 billion which is higher than LG Electronics’ market cap of US$8.8 billion. 
• Our base case valuation of LG Electronics India is implied market cap of 1,280 billion INR or US$14.4 billion.

• 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.

• 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

• 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.

• 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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• 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.

• SEBI barred Man Industries and three key executives from the securities market for 2Yrs, imposing 1 crore penalty on the company and officials for alleged “deliberate misstatement”.
• The order fundamentally questions the quality and credibility of past reported earnings, especially the non-consolidation of the loss-making subsidiary, Merino Shelters, and the alleged round-tripping of funds.
• While MIIL cites its strong ₹4,700 crore order book and minimal operational impact, the significant governance discount will persist until the SAT appeal is settled.

• Jain Resource Recycling (2300699D IN)  raised about US$142m in its India IPO.
• The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
• 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.

• Despite early monsoon resulting in weak demand, RPPL posted a decent revenue growth of 4.9% YoY in Q1FY26. This was led by 45% YoY growth in exports.
• RPPL’s injection molding segment has been doing exceptionally well with revenue doubling in Q1FY26. RPPL’s Olive Ecopak JV has started slow but holds significant potential.
• At current valuation, RPPL’s stock offers an attractive entry point with potential to more than triple over a holding period of three years.