Daily Brief India: ReNew Energy Global , Bharti Airtel, Hindustan Zinc, Karur Vysya Bank, Physicswallah Limited, Pine Labs, SGX Rubber Future TSR20 and more

• On the 10th December 2024, ReNew Energy Global (RNW US), an Indian renewable energy play, announced US$7.07/share NBIO. The bidding consortium subsequently bumped terms to US$8/share on the 3rd July.
• After shares traded through terms for a week, the Consortium increased (best & final) non-binding terms to US$8.15/share, a 29% premium to undisturbed. The Offer is via a UK Scheme.
• That last bump was on the 10th October. JERA, with 11.7% of shares out, and 25.7% of minorities, is supportive, IF terms are firmed. The Special Committee is still mulling.

• Pastel Ltd, a subsidiary of Singapore Telecommunications (Singtel) is looking to raise up to US$1.2bn via selling a 0.8% stake in Bharti Airtel (BHARTI IN).
• There have been three US$1bn+ selldowns already in 2025, twice by Sunil Mittal-led promoter entity Indian Continental Investment (ICI) and once by Singtel, which last sold in May 2025.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• Hindustan Zinc is one of the world’s largest, lowest-cost, integrated producers of zinc-lead, with a significant and growing silver byproduct business that enhances margins and provides a hedge against zinc price volatility.
• The company is pursuing a major capacity expansion to 2 million tonnes per annum (MTPA), funded by strong internal cash flows, aiming to solidify its cost leadership and capture growing demand, particularly in the Indian market.
• A significant overhang on the stock is the ongoing disagreement between the company’s management (led by majority shareholder Vedanta) and the Government of India (a 29.54% shareholder) regarding a proposed demerger of the zinc and silver assets, creating uncertainty for investors.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Strong Financial Trajectory: The bank has demonstrated a robust growth trajectory, with significant year-over-year increases in revenue and net income, driven by healthy loan growth and improving net interest margins.
• Strategic Shift Towards Granular Assets: Management has successfully pivoted the loan book from corporate lending towards more granular and higher-yielding retail, MSME, and agricultural loans, which has improved asset quality and profitability.
• Favorable Valuation with a Positive Outlook: Despite its strong performance, the bank trades at a reasonable valuation compared to its peers. The outlook is positive, with management guiding for above-industry credit growth and stable margins, supported by digital initiatives and branch expansion.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Physicswallah Is looking to raise about US$434m in its upcoming India IPO.
• 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.
• In this note, we talk about the not-so-positive aspects of the deal.

• Pine Labs has filed RHP for IPO with a total offer size of up to INR 39B, offering 176.5M shares at a price band of INR 210-INR 221 per share.
• This includes a fresh issue of INR 20.8B (~ 94.1M shares). The company intends to use the proceeds for debt repayment, cloud infrastructure and technology, general corporate purpose etc.
• Our recommendation would be that investors whoever is looking at a long-term investment horizon can definitely look at the stock as a growing long-term bet.

• Rubber product export slip accentuates by August  
• Industry warns SVAT removal may choke liquidity  
• CEAT’s US$171 million move gives manufacturing impetus