In today’s briefing:
- Vishal Mega Mart (VMM IN) Placement: PE Selling Will Lead to Large Passive Buying
- HDB Financial IPO: Offer Details & Index Entry Timing
- HINDZINC – ₹12,000 Cr Smelter Expansion Approved Amid Long-Term Growth Push
- LICHF: FY25 Performance Ended in Line With the Expectation
- Lucror Analytics – Morning Views Asia
Vishal Mega Mart (VMM IN) Placement: PE Selling Will Lead to Large Passive Buying
- Reports indicate that Kedaara Capital Fund is looking to sell 22% of Vishal Mega Mart at a floor price of INR 110/share, a 11.9% discount to the last close.
- The placement will lead to a huge increase in the free float for the stock and Vishal Mega Mart could be added to a global index in August.
- Vishal Mega Mart is also an inclusion to another global index at the close on Friday and we could see more buying in the stock following the increase in float.
HDB Financial IPO: Offer Details & Index Entry Timing
- HDB Financial Services Ltd (0117739D IN) is looking to list on the exchanges by selling up to INR125bn (US$1.46bn) of stock at a valuation of around INR 620bn (US$7.2bn).
- The stock will not get Fast Entry to either of the global indices. The earliest inclusion in a global index should take place in December.
- HDB Financial Services Ltd‘s peers have traded well over the last 6 months and that could spill over into demand for the stock. Grey market premium is pretty high.
HINDZINC – ₹12,000 Cr Smelter Expansion Approved Amid Long-Term Growth Push
- HZL has approved a ₹12,000 crore investment to set up a 250 KTPA integrated zinc smelter at Debari as part of its 2x capacity expansion plan.
- While smelting investments are not inherently value-accretive due to low TCs, they are necessary to process captive ore and minimize logistics costs.
- The overall growth outlook remains strong, but the pending mine lease expiries by 2030 pose a material long-term risk.
LICHF: FY25 Performance Ended in Line With the Expectation
- As projected by us, LIC Housing Finance (“LICHF”) ended FY25 with a strong PAT of INR 5400cr+ (up 14%+ YoY), led by normalized credit cost of around 0.1%.
- Q4FY25 PAT at INR 1374cr grew strong at 25%+ YoY. FY25 AUM grew 7.1% despite certain technical challenges. Total disbursements in FY25 grew at 9% YoY.
- NIM ended FY25 at 2.73%, in line with the expectation. Led by technical write-offs and sale of certain NPAs to ARCs, Stage 3 assets improved to 2.47% vs 3.31% YoY.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Biocon Biologics, Tata Motors, ReNew Energy
- US treasury yields rose for a second day, with the curve steepening despite good overall demand for an auction of 20Y notes. The yield on the 2Y UST rose 2 bps to 3.97%, while that on the 10Y UST was up 5 bps at 4.45%.
- Equities advanced on news that Iran was asking Gulf states to mediate a ceasefire with Israel. The S&P 500 increased 0.9% to 6,033, while the Nasdaq climbed 1.5% to 19,701.
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