Specialist in Indian Banking and Economic Research

Hemindra Hazari

Thematic (Sector/Industry)

The deregulation of India’s life insurance industry in 2000 and the eventual direct listing of private life insurance companies, with ICICI Prudential Life being the first, offer opportunities for investors requiring exposure to this sector in India.  Increasing penetration, enhancing long-term savings and mobilizing much-needed investments for infrastructure were expected to be the outcomes from such a policy. The liberalization process transformed the infrastructure sector from a low risk, public sector asset to a high-risk investment and introduced high volatility in penetration as insurance companies became stock market players and exposed policy holders to the vagaries of the capital market.For those interested in conventional life insurance companies, they may have to wait indefinitely for the listing of the government-owned Life Insurance Corporation as many private sector insurance companies have adopted a mutual fund model.   In the alternative, they may consider some of the companies less exposed to the capital market  and may have to wait for the eventual listing of HDFC-Max Life, Bajaj Life and Birla Sun Life.

The deregulation of India’s life insurance industry in 2000 and the eventual direct listing of private life insurance companies, with ICICI Prudential Life being the first, offer opportunities for investors requiring exposure to this sector in India.  Increasing penetration, enhancing long-term savings and mobilizing much-needed investments for infrastructure were expected to be the outcomes from such a policy. The liberalization process transformed the infrastructure sector from a low risk, public sector asset to a high-risk investment and introduced high volatility in penetration as insurance companies became stock market players and exposed policy holders to the vagaries of the capital market.For those interested in conventional life insurance companies, they may have to wait indefinitely for the listing of the government-owned Life Insurance Corporation as many private sector insurance companies have adopted a mutual fund model.   In the alternative, they may consider some of the companies less exposed to the capital market  and may have to wait for the eventual listing of HDFC-Max Life, Bajaj Life and Birla Sun Life.

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

PNB Housing Finance Ltd / Equity Capital Markets

PNB Housing Finance (PNBHF) plans to raise up to US$450m in its IPO through an issuance of primary shares. We had looked at the fundamental aspects of the deal in our earlier insight, <a href="https://www.smartkarma.com/insights/pnb-housing-finance-pre-ipo-review-transformed-into-a-growth-leader" target="_blank" data-smartkarma-citation="insights:6089">PNB Housing Finance Pre-IPO Review - Transformed into a Growth Leader</a>. In this insight, we run the deal through our framework, comment on updates since our last insight and on valuations.

PNB Housing Finance (PNBHF) plans to raise up to US$450m in its IPO through an issuance of primary shares. We had looked at the fundamental aspects of the deal in our earlier insight, PNB Housing Finance Pre-IPO Review - Transformed into a Growth Leader. In this insight, we run the deal through our framework, comment on updates since our last insight and on valuations. 

PNB Housing Finance IPO - Fast Growth, Supportive Parent, PE Not Selling, Reasonable Valuations

Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Geopolitical tensions in the sub-continent, already running high, have taken a turn for the worst as India carried out surgical strikes across the Line of Control (LoC) into Pakistan Occupied Kashmir. This is a first time that India has actually crossed the LoC to send a strong signal to Pakistan and this action, unfortunately, increases the risk of confrontation well into the future. Historically any tensions between India and Pakistan were defused by back channel intervention of global powers…

Geopolitical tensions in the sub-continent, already running high, have taken a turn for the worst as India carried out surgical strikes across the Line of Control (LoC) into Pakistan Occupied Kashmir. This is a first time that India has actually crossed the LoC to send a strong signal to Pakistan and this action, unfortunately, increases the risk of confrontation well into the future. Historically any tensions between India and Pakistan were defused by back channel intervention of global powers…

Rising Geopolitical Risks in Indian Sub-Continent: Towards a Worse-Off Sub-Optimal Nash Equilibrium

PNB Housing Finance (PNBHF) plans to raise around US$350m in its IPO, which could be launched as soon as next month. This will be the second largest IPO in India this year, after the ICICI Prudential Life's IPO.In this insight, we look at the company's past growth record, including the pickup in growth post launching of its business process transformation, and its return metrics. We also compare its performance in terms of growth and returns ratios with its listed peers, while adding our comments on expected valuations.

PNB Housing Finance (PNBHF) plans to raise around US$350m in its IPO, which could be launched as soon as next month. This will be the second largest IPO in India this year, after the ICICI Prudential Life's IPO.In this insight, we look at the company's past growth record, including the pickup in growth post launching of its business process transformation, and its return metrics. We also compare its performance in terms of growth and returns ratios with its listed peers, while adding our comments on expected valuations.

PNB Housing Finance Pre-IPO Review - Transformed into a Growth Leader

Managing Partner, Ampersand Investment Advisors

Rahul Singh

Managing Partner

Ampersand Investment Advisors

In what has been a range bound market, the element which stood out in recent times is increased participation of small/micro caps with relatively unknown names or proven track record. Even as foreign inflows through ETFs chased the large caps, domestic flows have led to a surge in midcap valuations and growth expectations in several names are bordering on the unrealistic now. This has to be a concern and could be a lead indicator of market volatility and imminent correction.Since the overriding sentiment in this newsletter is that the markets will correct, the most prudent course of action would be to partially book profits wherever valuations don't support fundamentals. Meanwhile, we would continually scout for new ideas as well as consolidate existing position in stocks/sectors we strongly believe can generate absolute returns i.e. Cement, NBFCs, Speciality Chemicals. Beneficiaries of rising construction equipment demand is in focus in this edition.

In what has been a range bound market, the element which stood out in recent times is increased participation of small/micro caps with relatively unknown names or proven track record. Even as foreign inflows through ETFs chased the large caps, domestic flows have led to a surge in midcap valuations and growth expectations in several names are bordering on the unrealistic now. This has to be a concern and could be a lead indicator of market volatility and imminent correction.Since the overriding sentiment in this newsletter is that the markets will correct, the most prudent course of action would be to partially book profits wherever valuations don't support fundamentals. Meanwhile, we would continually scout for new ideas as well as consolidate existing position in stocks/sectors we strongly believe can generate absolute returns i.e. Cement, NBFCs, Speciality Chemicals. Beneficiaries of rising construction equipment demand is in focus in this edition.

Big Money, Small Ideas - Sep 16 Newsletter

India

Punjab National Bank provides financial services such as corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. The Company provides services to domestic conglomerates, medium and small industrial units, exporters, non-resident Indians and multinational companies.

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Punjab National Bank (PNB IN)

Life Insurance: License for a Casino

The deregulation of India’s life insurance industry in 2000 and the eventual direct listing of private life insurance companies, with ICICI...

Hemindra Hazari

PNB Housing Finance IPO - Fast Growth, Supportive Parent, PE Not Selling, Reasonable Valuations

PNB Housing Finance (PNBHF) plans to raise up to US$450m in its IPO through an issuance of primary shares. We had looked at the fundamental aspects...

Sumeet Singh

Rising Geopolitical Risks in Indian Sub-Continent: Towards a Worse-Off Sub-Optimal Nash Equilibrium

Geopolitical tensions in the sub-continent, already running high, have taken a turn for the worst as India carried out surgical strikes across the...

Asia Advisors

PNB Housing Finance Pre-IPO Review - Transformed into a Growth Leader

PNB Housing Finance (PNBHF) plans to raise around US$350m in its IPO, which could be launched as soon as next month. This will be the second...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Life Insurance: License for a Casino

The deregulation of India’s life insurance industry in 2000 and the eventual direct listing of private life insurance companies, with ICICI...

Hemindra Hazari

PNB Housing Finance IPO - Fast Growth, Supportive Parent, PE Not Selling, Reasonable Valuations

PNB Housing Finance (PNBHF) plans to raise up to US$450m in its IPO through an issuance of primary shares. We had looked at the fundamental aspects...

Sumeet Singh

Rising Geopolitical Risks in Indian Sub-Continent: Towards a Worse-Off Sub-Optimal Nash Equilibrium

Geopolitical tensions in the sub-continent, already running high, have taken a turn for the worst as India carried out surgical strikes across the...

Asia Advisors

PNB Housing Finance Pre-IPO Review - Transformed into a Growth Leader

PNB Housing Finance (PNBHF) plans to raise around US$350m in its IPO, which could be launched as soon as next month. This will be the second...

Sumeet Singh

Big Money, Small Ideas - Sep 16 Newsletter

In what has been a range bound market, the element which stood out in recent times is increased participation of small/micro caps with relatively...

Ampersand Investment Advisors