In today’s briefing:
- Aadhar Housing Finance IPO Trading – More Loved by Institutional Investors than Retail
- Bajaj Finance (BAF): Strengthening Franchise to Sustain Growth Longevity
- GHCL Textile Q4 FY24 Update
- Belstar Microfinance Limited Pre-IPO Tearsheet
Aadhar Housing Finance IPO Trading – More Loved by Institutional Investors than Retail
- Aadhar Housing Finance(AHF) raised around US$360m in its India IPO, via selling a mix of primary and secondary shares.
- AHF is focused on the low income housing segments (ticket size less than INR1.5m) in India. It offers a range of mortgage-related loan products.
- We have looked at the company’s performance and valuation in our past notes. In this note, we talk about the trading dynamics.
Bajaj Finance (BAF): Strengthening Franchise to Sustain Growth Longevity
- BAF reported a decent Q4FY24 led by strong AUM growth and robust customer acquisition. Adjusted for the impact of the regulatory ban, Q4FY24 results were in line with the expectation.
- The biggest negative surprise in Q4FY24 was the 21bp NIM compression. NIM compressed led by AUM composition shifting incrementally to secured assets.
- BAF is optimistic on growth across segments, except Rural B2C where risk metrics are somewhat elevated; however this should normalize, given Rural B2B is doing fine.
GHCL Textile Q4 FY24 Update
- GHCL Textiles (GHCLTEXT IN) Aiming 25-30% revenue growth along with 15-20% average margins significantly increase the profitability of the company.
- Entering into value-added products like Functional fabrics and setting up their own manufacturing plant for fabric.
- Management Guidance on yarn prices, capex and debt profile of the company.
Belstar Microfinance Limited Pre-IPO Tearsheet
- Belstar Microfinance Ltd (3624918Z IN) is looking to raise US$156m in its upcoming India IPO. The bookrunners on the deal are ICICI Securities, Axis Capital, HDFC Bank, SBI Capital Markets.
- Belstar Microfinance (Belstar) is a non-banking finance company (NBFC) in India with a focus on furnishing micro-enterprise loans.
- As per the CRISIL report, the firm was the ninth largest NBFC – Micro Finance Institution (NBFC-MFI) in terms of assets under management (AUM) as of Dec 2023.
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