In today’s briefing:
- TCS US$1.1bn Placement – Relatively Small but Isn’t Well Flagged, Could Have Implications for Others
- ICICI Securities : A Special Situation Play with Limited Downside
- Larsen & Toubro (LT IN): Order Book Remains Robust Amidst Margin Concerns
TCS US$1.1bn Placement – Relatively Small but Isn’t Well Flagged, Could Have Implications for Others
- Tata Sons, holding company of Tata Group, is looking to raise around US$1.1bn via selling a 0.65% stake in Tata Consultancy Svcs (TCS IN).
- The deal doesn’t appear to be well-flagged although it could be part of Tata Sons’ recent moves to avoid an RBI mandated listing next year.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework.
ICICI Securities : A Special Situation Play with Limited Downside
- ICICI Securities Shareholders will consider delisting proposal at the end of March-24 which will decide its fate
- Swap Ratio based on current prices offers limited downside for I-Sec Shareholders if delisting goes through.
- There could be potential upside of 20% if delisting fails.
Larsen & Toubro (LT IN): Order Book Remains Robust Amidst Margin Concerns
- In Q3FY24, Larsen & Toubro (LT IN) witnessed order inflow of INR 760bn (up 25% YoY) bolstering the order book to INR 4.7tn at the end of December 2023.
- Margins continued to remain under pressure in 9MFY24 due to cost pressures in legacy jobs.
- Strong project execution and healthy order book are expected to drive future growth with margins reviving after bottoming out.
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