In today’s briefing:
- Sula Vineyards IPO: Forensic Analysis
- Gujarat Ambuja Exports
- KFin Technologies Pre-IPO – Large Domestic Player Continues to Get Larger
Sula Vineyards IPO: Forensic Analysis
- Sula Vineyards (1332009D IN) has currently come up with its IPO. The ~INR 9.6 bn IPO comprises offer for sale and has a price band of INR 340-357 per share.
- The company is a market leader with a market share crossing 50% in a relatively nascent INR 13.45 bn domestic 100% grape wine market.
- Key forensic takeaways that one should consider is high litigation liabilities, emphasis on related party transactions, irrational dividends and absurd trend of line items.
Gujarat Ambuja Exports
- Company holds pole position in corn starch processing in India with ~ 25% market share; but accounts for a significant share of industry’s profit pool.
- Further expanded capacity by 40% (1200tpd) just last week and another 25% expansion is planned for Q4FY24E, the 60%+ capacity expansion will drive volume led growth forward.
- Cost pressures (commodity, energy) to abate in FY24E. Formidable player, capital efficient business, cost leadership, net cash stature, low valuations(<10x PER, <1x EV/Sales), favors investment.
KFin Technologies Pre-IPO – Large Domestic Player Continues to Get Larger
- KFin Technologies (1804170D IN) is looking to raise around US$300m in its India IPO.
- KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.
- Under its offering, it primarily serves asset managers and corporate issuers domestically, while providing investor solutions for mutual funds and private retirement schemes in other regions.
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