Daily Brief India: WeWork India Management Ltd, LG Electronics India, Hindustan Aeronautics , Sammaan Capital, ADF Foods , Mysore Paper Mills, JSW Steel Ltd and more

• WeWork India Management Ltd (1690124D IN) IPO is an OFS under SEBI Regulation 6(2), reflecting weak financial eligibility, ongoing losses, and dependence on deferred tax credits for reported profitability.
• Promoter and governance risks loom large, with pending ED, CBI, and EOW proceedings against Jitendra and Karan Virwani, plus complaints of incomplete or misleading disclosures in filings.
• The IPO mainly serves as a deleveraging tool for the promoter, with pledged shares, heavy audit qualifications, weak controls, and depleting cash exposing material investor risks.

• LG Electronics India (123D IN) is looking to list on the exchanges by selling 101.8m shares at a valuation of US$8.7bn and raising around US$1.3bn in its IPO.
• The new valuation is around 24% lower than the rumoured valuation at the time of the DRHP filing last December.
• The stock will not get Fast Entry to global indices. Inclusion at regular rebalances will commence in June 2026 but flow will be small given the low float.

• NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
• In this insight, we take a look at the names leading the race to become ADDs/DELs for these indices during the March 2026 index rebal event.
• We see no changes for NIFTY 50 and three changes for NIFTY 100 (which would result in similar changes to NIFTY Next 50).

• Sammaan Capital’s Board approved a preferential issue to Avenir Investment RSC Ltd., a wholly-owned subsidiary of Abu Dhabi’s IHC, aggregating INR 8,850 crore (USD 1.06 billion) in equity and warrants.  
• The strategic inflow from the well-capitalized, sovereign-linked IHC provides a massive de-risking event, validates Sammaan’s new-book strategy, and signals a powerful new stream of capital flows into Indian HFC/NBFC space.  
• The scale, strategic nature, and pricing of the deal position Sammaan for a significant re-rating, shifting the investment thesis from asset quality clean-up to funded growth.

• WeWork India Management Ltd (1690124D IN) is looking to raise about US$338m in its India IPO.
• 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 peer comp and IPO valuations.

• WeWork India is the Indian arm of global flex space major (WEWKQ US); however, it is promoted by Indian real estate major Embassy group (~48% stake post IPO)
• WeWork has differentiated itself from the crowded flex space market with a focus on premium Grade-A property and cornering market share in major markets like Bengaluru and Mumbai (MMA)
• IPO valuation at 22x FY25 EBITDA prices in this premium relative to peers (12-14x). Can the company sustain these valuations?

• ADF Foods is shifting from an agency-based distribution model to a brand-led, in-house manufacturing approach, focusing on the U.S. frozen food segment to improve margins and supply control.
• This strategic pivot enhances margin stability, mitigates raw material and geopolitical risks, and deepens market penetration in mainstream international retail, positioning ADF for sustainable long-term growth and profitability.
• Market focus should move from export volatility to ADF’s brand premiumization and successful US greenfield execution, the key drivers of sustainable growth and long-term re-rating.

• Non-Operational Entity in Financial Distress: Mysore Paper Mills (MSPM) has ceased all core manufacturing operations, with paper production halted in 2015 and its sugar division in 2016. The company is characterized by a prolonged history of substantial financial losses, negative margins, and a complete erosion of net worth, rendering it a financially unviable entity in its current state.
• Government-Led Revival Efforts via Privatization: The Government of Karnataka (GoK), the majority shareholder, has deemed a public sector revival unfeasible and is actively pursuing leasing the company’s assets and operations to a private entity. However, multiple tender attempts since 2017 have failed to attract bidders, highlighting significant challenges and perceived risks by potential investors.
• High Uncertainty Against a Favorable Industry Backdrop: The company’s future is entirely contingent on the success of the government’s leasing strategy, which faces high uncertainty. This contrasts with the positive outlook for the broader Indian paper industry, which is experiencing robust growth driven by demand in packaging and education. Any potential value in MSPM lies in its physical assets and the speculative possibility of a successful operational turnaround under a new private operator.

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

• In today’s Morning Views publication we comment on developments of the following high yield issuers: JSW Steel
• UST yields fell yesterday, led by the front end and belly, as weaker than projected ADP employment data further bolstered Fed easing expectations. The UST curve bull steepened, with the yield on the 2Y UST down 7 bps to 3.54%, while that on the 10Y UST declined 5 bps to 4.10%.
• Equities climbed for the fourth day, with the market remaining upbeat despite the US government shutdown. The S&P 500 and Nasdaq rose 0.3% and 0.4% to 6,711 and 22,755, respectively.