In today’s briefing:
- Vishal Mega Mart IPO – Showcasing the Wrong Peers, Somewhat Limited Upside
- LG Electronics India IPO Preview
- Trent Ltd (TRENT IN) | LGD Can Be the Next Catalyst
- Farmers Pull Off A Price Hike In India Amid Favorable External Trend
- LG Electronics India Pre-IPO Tearsheet
- AMFI Stock Reclassification Preview (Dec 2024): Recent Large IPOs Lead to Big Downward Shift
Vishal Mega Mart IPO – Showcasing the Wrong Peers, Somewhat Limited Upside
- Vishal Mega Mart is planning to raise around US$950m through its upcoming IPO in India.
- Vishal Mega Mart Limited (VMM), is a one-stop retail destination. As per the company it targets middle and lower-middle income consumers across India
- We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.
LG Electronics India IPO Preview
- LG Electronics India is getting ready to complete an IPO in India in the next several months. The IPO offering size is expected to be about US$1.8 billion.
- LG Electronics (066570 KS) plans to sell 101.8 million shares, accounting for about 15% of the post-offer paid up equity capital shares of LG Electronics India.
- If LGEI is valued at US$13 billion, then an 85% of this stake would be worth US$11.1 billion, which would be worth more than LG Electronics’s own market cap.
Trent Ltd (TRENT IN) | LGD Can Be the Next Catalyst
- Trent Ltd (TRENT IN) is best positioned to capitalize on the growing market for lab-grown diamonds (LGD) and alter its business growth trajectory.
- LGD disruptions seen in other markets are unlikely to be seen in India due to the positioning of Jewellery in Household asset allocation.
- We also believe that Trent Ltd (TRENT IN) LGD potential is underrated while the impact on Titan Co Ltd (TTAN IN) is overrated.
Farmers Pull Off A Price Hike In India Amid Favorable External Trend
- NR prices stage a comeback but then undergo correction
- Rubber Board convenes series of producer meets to tackle challenges
- Rubber Board proposes a fee to issue NOC to import NR
LG Electronics India Pre-IPO Tearsheet
- LG Electronics (066570 KS) is looking to raise US$1.5bn+ via part-selling its stake in LG Electronics India IPO. The deal will be run by MS, JPM, Axis, BofA and Citi.
- LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume in 1Q25, as per Redseer Report.
- LGEI has been the number one player in this industry for 13 consecutive years (CY11-CY23) as per the value market share in the offline channel in India, as per Redseer.
AMFI Stock Reclassification Preview (Dec 2024): Recent Large IPOs Lead to Big Downward Shift
- We see 7 stocks moving from MidCap to LargeCap, 11 stocks moving from LargeCap to MidCap, 4 stocks from SmallCap to MidCap, and 11 stocks from MidCap to SmallCap.
- From the new listings, 4 stocks are expected to be added to Large Cap, 3 stocks to Mid Cap, and multiple stocks to Small Cap.
- There are multiple stocks among the AMFI changes that will be changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) and/or Nifty Midcap 150 Index in March.
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