In today’s briefing:
- Aequitas 2024 Asia IPO Pipeline – India
- Polycab India- Forensic Analysis
- SENSEX Index Rebalance Preview: Likely Wipro Deletion Opens an Index Spot
- Ola Electric IPO: Negatives Outweigh the Positives
Aequitas 2024 Asia IPO Pipeline – India
- In this note, we will take a look at the Asia Pacific IPO pipeline for 2024, following up with India after having looked at Hong Kong earlier.
- This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
- The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.
Polycab India- Forensic Analysis
- Polycab India (POLYCAB IN) is in the limelight on the back of Income Tax investigation carried in December 2023 which revealed several accounted transactions.
- In a circular, it is hinted that the IT department has detected unaccounted cash sales worth INR 10 bn, unaccounted cash payments made by distributors, and some non-genuine expenses.
- However our forensics framework does not hint at any alarming red flags, apart from low FA turnover ratio, stock with third parties and board composition.
SENSEX Index Rebalance Preview: Likely Wipro Deletion Opens an Index Spot
- Over a third of the way through the review period of the June rebalance, we see one potential index change with Wipro Ltd (WPRO IN) in deletion zone.
- There are a bunch of stocks that could be added to the index as a replacement and price changes over the rest of the review period are important.
- Passive trackers will need to trade over 1x ADV and over 7x of delivery volume on the index changes, so there will be decent impact on the stocks.
Ola Electric IPO: Negatives Outweigh the Positives
- Ola Electric is a vertically integrated pure EV player in India with both technology and manufacturing capabilities for EVs and EV components (including battery packs, motors and vehicle frames).
- The company has filed for an IPO to raise US$600m through the sale of new shares making it the first ever EV company to go for an IPO in India.
- Though the company’s growth story has been impressive, the sales volume is largely dependent on government subsidies raising concerns over its future prospects.
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