In today’s briefing:
- ESR Group (1821 HK): A Rumoured Offer Price Surfaces
- NIFTY Bank Index Rebalance: Canara Bank IN; Bandhan Bank OUT
- Narrative and Numbers | Housing Finance – PSUs | FY24
- StoneCo Ltd.: These Are The 4 Pivotal Factors Driving Its Performance In 2024 & 2025! – Major Drivers
ESR Group (1821 HK): A Rumoured Offer Price Surfaces
- A media outlet that Reports on Deals reported that the consortium will offer HK$14.50 per share, a 22.1% and 61.8% premium to the last close (HK$11.88) and undisturbed price (HK$8.96).
- While not a knockout offer, the consortium’s impending binding proposal suggests confidence that the offer price and structure would gain the support of the substantial shareholders.
- The downside to a deal break is low as ESR’s valuation is undemanding. Its forward EV/EBITDA multiple is at a 30% discount to the median peers’ multiple.
NIFTY Bank Index Rebalance: Canara Bank IN; Bandhan Bank OUT
- In line with our forecast, Canara Bank (CBK IN) will replace Bandhan Bank Ltd (BANDHAN IN) in the NSE Nifty Bank Index (NSEBANK INDEX) at the close on 27 September.
- Bandhan Bank Ltd (BANDHAN IN) will be deleted from a global index at the close on 31 August, so real float will increase a lot over the next month.
- Passive trackers will need to buy over 2 days of ADV in Canara Bank (CBK IN) and sell 1 day of ADV in Bandhan Bank Ltd (BANDHAN IN).
Narrative and Numbers | Housing Finance – PSUs | FY24
- This Insight focuses on PSU owned Housing Finance companies – PNB Housing Finance Ltd (PNBHOUSI IN) , LIC Housing Finance (LICHF IN) and Can Fin Homes (CANF IN).
- PNB Housing aims to focus on affordable housing, LIC Housing Finance is possibly struggling due to its size and a conservative risk appetite.
- Can Fin Homes exhibits some serious questions regarding its internal controls and underwriting policies.
StoneCo Ltd.: These Are The 4 Pivotal Factors Driving Its Performance In 2024 & 2025! – Major Drivers
- StoneCo has showcased a robust performance in the second quarter of 2024, aligning closely with its strategic goals for the year.
- Despite facing an evolving competitive landscape and a complex economic environment, StoneCo demonstrated commendable growth and operational efficiency across its multiple segments.
- In the payments sector, StoneCo reported impressive year-over-year growth with a 30% increase in its client base and a 25% expansion in total payment volume (TPV).
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