In today’s briefing:
- Hyundai Motor India IPO Valuation Analysis
- STCube: Rights Offering Capital Raise of 89 Billion Won
- JSW Cement Pre-IPO Tearsheet
- Kioxia IPO Early Re-Look – Better Placed This Time Around
- Premier Energies IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation
Hyundai Motor India IPO Valuation Analysis
- Our base case valuation of Hyundai Motor India is market cap of US$18.6 billion, based on P/E of 24.4x our estimated net profit of 64.1 billion INR in FY25.
- There have been some increasing concerns about Hyundai Motor India paying out higher royalty to its parent Hyundai Motor and dividend to shareholders, which could lower profit.
- According to a recent article by livemint, the expected valuation of Hyundai Motor India has fallen to about USD16 billion to USD20 billion.
STCube: Rights Offering Capital Raise of 89 Billion Won
- STCube announced it plans to increase capital by 89 billion won (13 billion won through a third party rights offering and 75.7 billion won through shareholder preferred capital increase).
- We have a positive view of STCube’s capital raise and there could be some alpha generating returns in our view.
- The fact that the company’s share price surged nearly 5x from the last rights offering in May 2022 (to October 2022) is likely to positively impact capital raise this time.
JSW Cement Pre-IPO Tearsheet
- JSW Cement Limited (9858514Z IN) is looking to raise about US$480m in upcoming India IPO. The deal will be run by JMFin, Axis, Citi, DAM, GS, Jefferies, Kotak, SBI Caps.
- JSW Cement (JSWC) is a cement manufacturing company in India focused on manufacturing green cementitious products comprising blended cement, ordinary portland cement, ground granulated blast furnace slag among other products.
- According to CRISIL, JSWC was the fastest growing cement manufacturing company in India, in terms of increase in installed grinding capacity and sales volume from FY14-24.
Kioxia IPO Early Re-Look – Better Placed This Time Around
- Kioxia Holdings (6600 JP) aims to list in Japan by Oct 2024 at a valuation of over US$10bn, as per media reports.
- Kioxia is a manufacturer and a global leader in flash memory and solid state drives for smartphones, PCs, enterprise servers and data centers
- In this note, we take an early look at the possible listing.
Premier Energies IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation
- Premier Energies Limited (0377949D IN) is looking to raise up to US$337m in its India IPO, after upsizing from an earlier reported float of US$300m.
- The firm manufactures solar photovoltaic (PV) cells, and solar modules. It also executes engineering, procurement, and construction (EPC) projects and provides follow-up operation and maintenance (O&M) services.
- Previously, we talked about the company’s historical performance. In this note, we provide a summary of its RHP updates and share our quick thoughts on peer comparison and valuation.
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