In today’s briefing:
- IGI (India) IPO Trading – Decent Anchor and Strong Overall Demand
- LG Electronics India IPO Valuation Analysis
- The Beat Ideas: KCP Limited- Cement Business Undervaluation
- Bluestone Jewellery and Lifestyle Ltd Pre-IPO Tearsheet
- Ventive Hospitality Pre-IPO – Leveraging Expanded Portfolio to Drive Growth
- India’s Tire Exports Surge Amid R&D, Manufacturing Boost
IGI (India) IPO Trading – Decent Anchor and Strong Overall Demand
- International Gemmological Institute (India) raised around US$500m in its India IPO.
- IGI India is part of the International Gemmological Institute (IGI) group. As of 22nd August 2024, IGI India handled operations of the IGI business in India and Türkiye.
- We have looked at the company’s past performance and IPO valuations in our previous notes. In this note, we talk about the trading dynamics.
LG Electronics India IPO Valuation Analysis
- Our base case valuation of LG Electronics India is implied market cap of 1,256 billion INR or US$14.7 billion.
- Several media accounts have mentioned that LGEI could be targeting a valuation of about US$13 billion to US$15 billion.
- LGEI’s valuation would need to be about US$13 billion or less in order for us to be Bullish on this IPO.
The Beat Ideas: KCP Limited- Cement Business Undervaluation
- KCP Ltd (KCPL IN) is available at a significant discount due to underperformance and margin deterioration.
- The sugar sector is performing well due to higher realization and higher sugar cultivation.
- The company is poised for a high valuation if it demerges or sale its cement business, which is a big drag in the overall valuation.
Bluestone Jewellery and Lifestyle Ltd Pre-IPO Tearsheet
- Bluestone Jewellery and Lifestyle Ltd Ltd (BJL) (0124165D IN) is planning to raise about US$118m through its upcoming India IPO. The lead bookrunners for the deal are Axis, IIFL, Kotak.
- BJL offers contemporary lifestyle diamond, gold, platinum, and studded jewellery under its flagship brand.
- It is a digital-first direct-to-consumer (DTC) brand and is the second largest digital-first omni-channel jewellery brand in India in terms of revenues for FY24 as per RedSeer Report.
Ventive Hospitality Pre-IPO – Leveraging Expanded Portfolio to Drive Growth
- Ventive Hospitality Ltd (0807075D IN) is looking to raise about US$188m in its India IPO. The deal, a fresh issue of shares is downsized from an earlier target of ~US$240m.
- Ventive Hospitality Limited (VHL) is the largest hospitality asset owner amongst public listed market peers, focused primarily on luxury offerings across business and leisure in India and Maldives.
- In this note, we talk about the company’s historical performance.
India’s Tire Exports Surge Amid R&D, Manufacturing Boost
- FY 2024-25 H1 witnesses 12% YoY growth in tire exports value
- Motorcycle tire exports volume up by 37%; Columbia largest importer
- Bridgestone to invest US$85 million for India expansion
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