Utilities Sector

• NTPC Green Energy Ltd (2214556D IN) is looking to raise around US$1.2bn in its upcoming India IPO.
• NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU).
• In this note, we will talk about the not so positive aspects of the deal.

• NTPC Green Energy Ltd (2214556D IN) is looking to raise around US$1.2bn in its upcoming India IPO.
• NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU). 
• In this note, we will talk about the positive aspects of the deal.

• CWCO is a utility company operating in the water infrastructure sector, providing resilience to its earnings
• The company’s strong balance sheet, underestimated receivables, and potential for higher-than-expected earnings in 2025/26 make it undervalued compared to peers
• With limited sell-side coverage and a market cap around $400 million, CWCO is underfollowed, offering room for growth potential in the evolving water infrastructure market

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Greenko Energy Holdings

• Major indexes in the three largest global equity markets (U.S., Europe, Japan) all remain below critical resistances of 5783 on SPX, 5000-5120 on EURO STOXX 50, and 2740-2820 on TOPIX
• Additionally, broad global MSCI indexes (local currency) including the ACWI, ACWI ex-U.S., and EAFE all remain at/below resistance from their YTD highs; reduce exposure or shift to defensives.
• In late-July we discussed expectations for a 1-to 4-month pullback/consolidation period on MSCI ACWI. We believe it seems likely to last closer to four months, and potentially 4- to 6-months

• NTPC Green Energy Ltd (2214556D IN) is looking to raise about US$1.2bn in its upcoming India IPO. The deal will be run by IDBI Cap, HDFC, IIFL and Nuvama Wealth.
• It is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited. Its portfolio encompasses solar and wind power assets with presence in over six states.
• According to CRISIL, it was the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of June 30, 2024 and power generation in FY24.

• The NIFTY Index, Nifty Next 50 Index, NSE Nifty Bank Index, CNXIT Index, Nifty Midcap 150 Index, Nifty100 Low Volatility30 Index and the CPSE ETF rebalance at the close tomorrow.
• The round-trip trade across the indices is US$3.3bn and there are 13 stocks with over 1 day of ADV to trade from passive trackers.
• Stocks with the largest inflows are Trent, Bharat Electronics, Canara Bank, Bharat Heavy Electricals, Oil & Natural Gas Corp, Coal India, Hindustan Aeronautics and InterGlobe Aviation.

• The deal has now got green light from the SEC, FERC, Maine Public Utilities Commission, and seal of approval from ISS and Glass Lewis.
• Pending are the approval of the New York Public Service Commission and shareholder approval (GM on September 26, which should just be a formality).
• Spread is 0.46%/3.48% (gross/annualised) based on the closing share price of September 18 and assuming both a prorated dividend of $0.1467 and settlement on November 8. Long and tender.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• China Water Affairs
• Meituan

• TLN held an investor day where its management laid out the free cash flow the Company should generate over the next two years and how it was going to happen.   
• TLN is projecting adjusted EBITDA that makes our estimate look very conservative.    TLN is forecasting 2025 adjusted EBITDA of $926 million to $1.175 billion. 
• The expected free cash flow over the next two years is powering TLN to raise their stock buyback program by $1.1 billion.