In today’s briefing:
- Whirlpool Corporation’s Big Exit: What’s Behind the Stake Reduction?
- Lumino Industries Ltd Pre-IPO Tearsheet
- Veritas Finance Pre-IPO Tearsheet
- Can Krishca Strapping Solutions Maintain Momentum Amidst Steel Price Volatility?
- What the Airtel-Bajaj Finance Partnership Means for Their Growth Plans?
- EQD | Nifty 50 Option Strategy – Implied Volatility Is Not as Rich as It Seems
Whirlpool Corporation’s Big Exit: What’s Behind the Stake Reduction?
- Whirlpool Corp (WHR US) plans to sell a 31% stake in Whirlpool of India (WHIRL IN) reducing ownership to 20% by 2025, triggering a 20% decline due to valuation concerns.
- The implied sale valuation is lower than market expectations, raising concerns about growth, profitability, and stock overvaluation, while the parent company capitalizes on an asset arbitrage opportunity.
- Short-Term stock pressure due to stake sale overhang, declining profitability, and reduced parent control, but potential long-term re-rating if operational performance improves.
Lumino Industries Ltd Pre-IPO Tearsheet
- Lumino Industries Ltd (0349204D IN) is looking to raise about US$116m in its upcoming India IPO. The bookrunners for the deal are Motilal, JM Fin, Monarch.
- Lumino Industries Ltd (LIL) was established in 2005. The company is a product-driven integrated engineering, procurement, and construction (EPC) player in India.
- As per CRISIL Report, Lumino Industries is recognized as the fastest-growing player in the conductors, power cables, and power EPC industry, in terms of revenue CAGR between FY22 to FY24.
Veritas Finance Pre-IPO Tearsheet
- Veritas Finance Ltd (1392490D IN) is looking to raise around US$323m in its upcoming India IPO. The bookrunners on the deal are ICICI, HDFC, Jefferies, Kotak and Nuvama.
- Veritas Finance Limited (VFL) is a retail focused non-banking finance company (NBFC) in India primarily providing loans to micro small and medium enterprises (MSMEs) and self-employed individuals.
- As per the CRISIL report, the firm was the fastest-growing NBFC in terms of AUM growth during FY22-24, growing at a CAGR of 61.76%.
Can Krishca Strapping Solutions Maintain Momentum Amidst Steel Price Volatility?
- Krishca Strapping Solutions (KRISHCA IN) is India’s first “Lead-Free” and eco-friendly production line for the heat treatment of steel strapping.
- The company is aggressively pursuing growth, aiming for a 25% revenue increase in the current financial year and EBITDA margin is anticipated to stay between 15% and 20%
- The company is investing in a new special steel production plant in Chennai and launching subsidiaries in the UAE and Singapore to tap into new markets
What the Airtel-Bajaj Finance Partnership Means for Their Growth Plans?
- Airtel-Bajaj Finance partnership is a game-changer in the digital financial services sector in India. It combines the strengths of both companies to create a powerful platform.
- By leveraging Airtel’s extensive distribution network and Bajaj Finance’s financial expertise, this collaboration has the potential to disrupt the market and challenge established players.
- It follows the successful playbook of other global partnerships and demonstrates how digital platforms and financial institutions can work together to enhance financial accessibility
EQD | Nifty 50 Option Strategy – Implied Volatility Is Not as Rich as It Seems
- NIFTY Index implied volatility could be seen as rich when compared to its own history and in comparison to realized volatility.
- Putting implied volatility into context with NIFTY Index market levels and trends will lead to a different conclusion. Implied volatility is not nearly as rich as conventional measures suggest.
- This Insight provides a quantitative indication at which price implied volatility can be assessed as rich, given current relative index levels.
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