Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Indian Railway Finance Corporation / Equity Capital Markets

Indian Railway Finance Corporation (IRFC) aims to raise around US$500m via selling new and existing shares in its Indian IPO.IRFC is the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas capital markets. Its primary business is financing the acquisition of rolling stock assets and project assets of the Indian railways and lending to other entities under the Ministry of Railways.IRFC’s AUM has grown by 25-30% over FY18-FY19, while disbursements have been growing at 34-43%. Although earnings growth has lagged AUM growth in FY19, after posting a strong FY18. Although, its net interest margin has been under pressure due to the rising cost of funds and lower margin set by the Ministry of Railways.  Furthermore, a higher proportion of financing of project assets in the future will probably continue to pressurise margins.Due to its government linked financing, the company has no non-performing assets and high capital adequacy.

Indian Railway Finance Corporation (IRFC) aims to raise around US$500m via selling new and existing shares in its Indian IPO.IRFC is the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas capital markets. Its primary business is financing the acquisition of rolling stock assets and project assets of the Indian railways and lending to other entities under the Ministry of Railways.IRFC’s AUM has grown by 25-30% over FY18-FY19, while disbursements have been growing at 34-43%. Although earnings growth has lagged AUM growth in FY19, after posting a strong FY18. Although, its net interest margin has been under pressure due to the rising cost of funds and lower margin set by the Ministry of Railways.  Furthermore, a higher proportion of financing of project assets in the future will probably continue to pressurise margins.Due to its government linked financing, the company has no non-performing assets and high capital adequacy. 

Indian Railway Finance Pre-IPO - Low Risk, Low Margin Business

Financials Credit Analyst

Hank Calenti, CFA

CreditContinuum

Credit

Liquidity changes everything. Liquidity dominated global credit markets this week creating a FOMO (fear of missing out) investor environment, despite a rising real economy impact from the novel coronavirus (nCov-2019). As the week ended, the US Labor Department reported that wages rose by only 3.1% year-over-year. The moderate level of wage growth suggests no need for the Fed to guide interest rates higher in the near term. With liquidity and rates driving credit markets, there may be bigger risks than the coronavirus for investors this year, such as the US elections. Nonetheless, the snap back in risk sentiment suggest to us that long-term credit buying opportunities remain but may be fleeting. In the primary market, debt issuance remained tepid in Asia although <a href="https://www.smartkarma.com/entities/cssc-hong-kong-shipping-co-l" target="_blank" rel="noopener" data-smartkarma-citation="entities:28068:1">CSSC (Hong Kong) Shipping Co Ltd (3877 HK)</a> and <a href="https://www.smartkarma.com/entities/indian-railway-finance-corporation" target="_blank" rel="noopener" data-smartkarma-citation="entities:28417:1">Indian Railway Finance Corporation (INFZ IN)</a> priced deals in the US dollar market. This could lead to more deals next week. Concurrently, <a href="https://www.smartkarma.com/entities/malayan-banking-bhd" target="_blank" rel="noopener" data-smartkarma-citation="entities:600:1">Malayan Banking (MAY MK)</a> brought a three-tranche deal worth ¥61billion ($556 million) into Japan’s Samurai market. Among high yield debt issuers, the Republics of Ghana and Turkey took advantage of risk-on sentiment to attract demand for their B3 and B1 rated bonds, respectively. However, the clearest signal that the market may be drowning in liquidity comes from <a href="https://www.smartkarma.com/entities/alpha-bank-ae" target="_blank" rel="noopener" data-smartkarma-citation="entities:22601:1">Alpha Bank AE (ALPHA GA)</a>.In this week's report, we assess recent credit spread movements, compare Hong Kong bank Additional Tier 1 bond performance and highlight bank debt capital new issuance that may have implications for Asian bank debt.

Liquidity changes everything. Liquidity dominated global credit markets this week creating a FOMO (fear of missing out) investor environment, despite a rising real economy impact from the novel coronavirus (nCov-2019). As the week ended, the US Labor Department reported that wages rose by only 3.1% year-over-year. The moderate level of wage growth suggests no need for the Fed to guide interest rates higher in the near term. With liquidity and rates driving credit markets, there may be bigger risks than the coronavirus for investors this year, such as the US elections. Nonetheless, the snap back in risk sentiment suggest to us that long-term credit buying opportunities remain but may be fleeting. In the primary market, debt issuance remained tepid in Asia although CSSC (Hong Kong) Shipping Co Ltd (3877 HK) and Indian Railway Finance Corporation (INFZ IN) priced deals in the US dollar market. This could lead to more deals next week. Concurrently, Malayan Banking (MAY MK) brought a three-tranche deal worth ¥61billion ($556 million) into Japan’s Samurai market. Among high yield debt issuers, the Republics of Ghana and Turkey took advantage of risk-on sentiment to attract demand for their B3 and B1 rated bonds, respectively. However, the clearest signal that the market may be drowning in liquidity comes from Alpha Bank AE (ALPHA GA).In this week's report, we assess recent credit spread movements, compare Hong Kong bank Additional Tier 1 bond performance and highlight bank debt capital new issuance that may have implications for Asian bank debt.

Asian Bank HY Credit Weekly: Liquidity Overpowers Coronavirus in Credit

India

Indian Railway Finance Corporation Limited (IRFC) provides financial services. The Company raises money from the market through bonds and off-shores borrowings to finance the plan outlay of railways and other various developmental programs. IRFC serves customers in India. 

Indian Railway Finance Corporation (IRFC IN)

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Indian Railway Finance Corporation (IRFC IN)

Indian Railway Finance Pre-IPO - Low Risk, Low Margin Business

Indian Railway Finance Corporation (IRFC) aims to raise around US$500m via selling new and existing shares in its Indian IPO.IRFC is the dedicated...

Sumeet Singh

Asian Bank HY Credit Weekly: Liquidity Overpowers Coronavirus in Credit

Liquidity changes everything. Liquidity dominated global credit markets this week creating a FOMO (fear of missing out) investor environment,...

Hank Calenti, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)