In today’s briefing:
- Physicswallah IPO Trading – Decent Anchor but Low Demand
- Syrma SGS’s Strategic Foray into Defence Electronics: Elcome and Navicom Acquisitions
- Amber Enterprise–Shogini Deal: A Strategic Leap Toward Full-Stack Electronics Manufacturing
- Stat-Arb Pair Trade: Long Bank of Baroda (BOB IN) Vs. Short Canara Bank (CBK IN)
- Tenneco Clean Air India Ltd IPO Trading: Strong Insti Demand and Overall Sub Rate
- Union Bank of India (UNBK IN) Vs. Canara Bank (CBK IN): Statistical Arbitrage in Indian Banks
Physicswallah IPO Trading – Decent Anchor but Low Demand
- Physicswallah raised around US$430m in its India IPO, despite having a decent anchor book.
- Physicswallah Ltd (PWL) offers test preparation courses for competitive examinations, and other courses such as for upskilling, across 13 education categories, including JEE, NEET, and UPSC, among others.
- We have looked at the past performance in our previous note. In this note, we talk about the trading dynamics.
Syrma SGS’s Strategic Foray into Defence Electronics: Elcome and Navicom Acquisitions
- Syrma SGS Technology is acquiring a 60% stake in Elcome Integrated Systems, with a path to 100% via performance-linked earn-outs, alongside Elcome’s simultaneous acquisition of Navicom Technology.
- This strategic move marks Syrma SGS’s formal entry into the high-barrier, long-cycle Indian defence electronics market, offering diversification from its core EMS business and aligning with India’s “Aatmanirbhar Bharat” initiative.
- The accretive nature, revenue visibility of over INR 400 crore, and design-led capabilities gained position Syrma SGS for a structural re-rating.
Amber Enterprise–Shogini Deal: A Strategic Leap Toward Full-Stack Electronics Manufacturing
- Amber has signed a definitive agreement to acquire a majority stake in Pune-based PCB manufacturer Shogini Technoarts through its subsidiary ILJIN Electronics (India) Pvt. Ltd.
- This move strengthensAmber’s backward integration in printed circuit boards at a time when India’s PCB market is expanding quickly and still relies heavily on imports.
- The acquisition supports Amber’s transition from a primarily HVAC and consumer-durables component player to a more complete EMS and PCB solutions provider, an important shift that deserves closer analysis.
Stat-Arb Pair Trade: Long Bank of Baroda (BOB IN) Vs. Short Canara Bank (CBK IN)
- Context: The Bank of Baroda (BOB IN) vs. Canara Bank (CBK IN) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long Bank of Baroda (BOB IN) and short Canara Bank (CBK IN) targets a 9% return.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
Tenneco Clean Air India Ltd IPO Trading: Strong Insti Demand and Overall Sub Rate
- Tenneco Clean Air India Ltd (1880671D IN) raised US$406m in its India IPO.
- TCAIL designs and manufactures clean air, powertrain, and suspension solutions for Indian OEMs, export markets, and the aftermarket, serving PVs, CVs, OHs, and industrial applications.
- 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.
Union Bank of India (UNBK IN) Vs. Canara Bank (CBK IN): Statistical Arbitrage in Indian Banks
- Context: The Union Bank of India (UNBK IN) vs. Canara Bank (CBK IN) price ratio has deviated two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long Union Bank of India (UNBK IN) and short Canara Bank (CBK IN) targets a 10% return.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
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