In today’s briefing:
- India – Potential Float Changes & Impact
- Titagarh Rail Systems Ltd- Forensic Analysis
- Muthoot Microfin Pre-IPO Tearsheet
India – Potential Float Changes & Impact
- Over the last few weeks, companies in India have been disclosing their shareholding pattern as of end-June. There are a few companies with significant float changes from end-March and/or end-December.
- The changes in free float could be reflected in domestic and global indices over the next couple of months resulting in action from passive trackers.
- We see 6 stocks where there could be passive inflows and 2 stocks that could have passive outflows – but there are caveats.
Titagarh Rail Systems Ltd- Forensic Analysis
- Titagarh Wagons (TWL IN) (now ‘Titagarh Rail Systems’) has seen an extraordinary momentum in its share price in last couple of years, especially after bagging crucial contracts for Indian Railways.
- The company was limping until F22 due to its Italian subsidiary (TFA). However, the recapitalization of TFA (including change in accounting) in F23 should make the balance sheet look better.
- Forensic analysis revealed several takeaways, ranging from write-offs and internal audit issues to heavy contingent liabilities.
Muthoot Microfin Pre-IPO Tearsheet
- Muthoot Microfin (1363943D IN) is looking to raise up to US$163m in its upcoming India IPO. The deal will be run by ICICI-Sec, Axis Capital, JM Financial and SBI Capital.
- Muthoot Microfin is a microfinance institution providing micro-loans to women customers with a focus on the rural regions of India.
- It is the fourth largest NBFC-MFI in India in terms of gross loan portfolio as of 9M23 (ending 31st Dec 2022). It is part of the Muthoot Group.
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