In today’s briefing:
- BAT’s Possible US$2.5bn ITC Selldown – Will Be Well Flagged but Still Won’t Be an Easy One to Digest
- NIFTY NEXT50 Index Rebalance: Five Changes on Expected Lines; Big Turnover
- NIFTY50 Index Rebalance: Shriram Finance to Replace UPL
- Morning Views Asia: Adani Green Energy
- Bharat Highways InvIT IPO – Hardly Attractive Given the Lackluster Sentiment
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BAT’s Possible US$2.5bn ITC Selldown – Will Be Well Flagged but Still Won’t Be an Easy One to Digest
- Earlier this month, British American Tobacco (BATS LN)’s management stated that they were reviewing their stake in ITC Ltd (ITC IN) to enhance its balance sheet flexibility.
- BAT has owned its stake in ITC for over a century and remains its largest shareholder.
- In this note, we talk about the possible deal structure and dynamics.
NIFTY NEXT50 Index Rebalance: Five Changes on Expected Lines; Big Turnover
- There are five changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) that will be implemented at the close on 27 March. Changes are on expected lines.
- Estimated one-way turnover for the NSE Nifty Next 50 Index (NIFTYJR INDEX) is 10.1% resulting in a one-way trade of INR 22.2bn (US$268m).
- Apart from the impact on the adds and deletes, there will be a big impact on some of the non-F&O stocks due to capping and funding flows.
NIFTY50 Index Rebalance: Shriram Finance to Replace UPL
- Shriram Finance (SHFL IN) will replace UPL Ltd (UPLL IN) in the NIFTY Index (NIFTY INDEX) at the close of trading on 27 March. This was a high probability change.
- Trent Ltd (TRENT IN) missed out on inclusion and that results in Bharat Petroleum Corp (BPCL IN) staying in the index.
- There is over 11 days of delivery volume to trade in the add and delete and there appears to be significant positioning in one of the stocks.
Morning Views Asia: Adani Green Energy
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
Bharat Highways InvIT IPO – Hardly Attractive Given the Lackluster Sentiment
- Bharat Highways InVIT (BHINV IN) is looking to raise up to US$301m in its Indian IPO.
- Bharat Highways InVIT is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
- In this note, we talk about the company’s historical performance and provide our quick thoughts on valuation.