In today’s briefing:
- Hyundai Motor India: Index Entry Timing for India’s Biggest IPO
- Hyundai Motor India Sets IPO Price Range
- The Beat Ideas: HIL Limited – Turnaround Play in Building Material
- Namaste India 🙏 | India’s Atomic Ambitions
- Dr Agarwal’s Health Care Pre-IPO Tearsheet
Hyundai Motor India: Index Entry Timing for India’s Biggest IPO
- Hyundai Motor India (1342Z IN) is looking to list on the exchanges by selling up to INR 279bn (US$3.3bn) of stock at a valuation of up to INR 1,593bn (US$19bn).
- The anchor allocations will be completed early next week, and the stock is expected to start trading on 22 October.
- The stock will not get Fast Entry to global indices. Inclusion at regular rebalances should take place in February and June next year.
Hyundai Motor India Sets IPO Price Range
- Hyundai Motor India (1342Z IN) has set an IPO price range of 1,865 to 1,960 rupees per share, aiming for a valuation as high as US$19 billion.
- Hyundai Motor (005380 KS) is selling a 17.5% stake in Hyundai Motor India in this public offering. Hyundai Motor India IPO is scheduled to trade starting 22 October.
- Our updated base case valuation of Hyundai Motor India is market cap of US$19.7 billion based on P/E of 25.9x our estimated net profit of 64.1 billion INR.
The Beat Ideas: HIL Limited – Turnaround Play in Building Material
- Change in HIL Ltd (HIL IN) started after the appointment of professional CEO Mr. Akshat Seth.
- HIL is turning around its acquisition of Parador and Topline, which were Loss making. The company was not performing due to lower demand in US, EU etc.
- Aiming for 14-16% Revenue growth and 2-3% EBITDA Margin improvement due to distribution growth, Parador Turnaround and high demand in real estate segment.
Namaste India 🙏 | India’s Atomic Ambitions
- Re-Introducing our weekly Namaste India 2.0. This iteration builds on our earlier version and is designed for investors keen to track developments in India.
- Nuclear power currently contributes less than 2% of India’s total electricity generation, indicating significant room for growth.
- Going ahead, with earnings taking center stage, the high valuations commanded by iShares MSCI India ETF (INDA US) are likely to get challenged.
Dr Agarwal’s Health Care Pre-IPO Tearsheet
- Dr Agarwal’s Health Care Ltd (8140044Z IN) is looking to raise about US$480m in its upcoming India IPO. The deal will be run by Jefferies, Kotak, MS and Motilal.
- Dr Agarwal’s Health Care is a healthcare/hospital chain in India providing eyecare services, including surgeries; consultations, diagnoses, non-surgical treatments; and sells opticals, contact lens, accessories and eyecare related pharmaceutical products.
- According to the CRISIL MI&A report, it had a ~25% market share of the total eye care service chain market in India in FY24.
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