Entering the Week of India's Largest Ever IPO

• The Indian market closed lower on Friday, dragged down by declines in auto and banking stocks. While pharma and metal stocks offered some support, it wasn't enough to push the indices up.

• Investor sentiment was dampened by FII sell-offs, weak Q2 FY25 earnings projections, growing geopolitical tensions, and weakness in the global market.

• Shares of metal companies jumped as much as 3.5 percent on Friday due to renewed hopes of additional stimulus from the Chinese government. Earlier this week, metal stocks saw profit booking after China's state planner did not announce further stimulus measures or clarify plans to revive the struggling property sector. However, optimism returned when it was reported that China's Finance Minister would hold a briefing on Saturday, with expectations of new stimulus measures.

• The rupee fell below 84 per USD due to equity outflows and rising oil prices.

Bondada Engineering +1.79%

• Bondada Engineering surged 5 percent intraday on October 11 after securing two orders worth a combined Rs 1,132 crore.

• The company won two EPC (Engineering, Procurement, and Construction) contracts under the MSKVY 2.0 scheme to develop crystalline ground-mounted solar PV power plants across multiple districts in Maharashtra.

CreditAccess Grameen (3.50%)

• Shares dropped 3 percent to Rs 1,088 during morning trade on October 11 after Nomura downgraded the stock from 'neutral' to 'reduce' and lowered its price target.

• The international brokerage set a target price of Rs 950, implying a potential downside of around 15 percent from the last closing price of Rs 1,119 on the NSE. CreditAccess shares have fallen 30 percent since the beginning of the year.

• The Centre has alerted state governments about rural infrastructure bottlenecks and a shortage of jobs. (ET)

• Jio Financial Services launched the JioFinance app, providing loans, savings, and insurance solutions. (YS)

• India plans to share its expertise in digital public infrastructure with ASEAN countries. (YS)

• The US remains the largest source of FDI in India, according to the RBI census. (ET)

Hyundai Motor India’s IPO Overview

IPO Details: Hyundai Motor India's IPO, the largest in India's automotive industry history, is set to raise more than 27,000 crore, making it the biggest Indian IPO ever. The IPO, priced between ₹1,865-1,960 per share, aims to raise significant funds primarily through an offer for sale by existing shareholders. The subscription window is open from October 15 to October 17, 2024. Unlike typical IPOs, no fresh issue is being made; the raised amount will be used to facilitate shareholder exits​

Financial Performance: The company has demonstrated strong financial performance, with FY24 revenue reaching ₹69,829 crore, a significant growth from ₹60,307 crore in FY23. The company's profit after tax stood at ₹6,060 crore, reflecting a 56.82% return on equity (RoE), showing a significant improvement compared to previous years​. These figures are supported by its strong market presence, especially in the passenger vehicle segment.

Risks and Competitiveness: Key risks include increased competition in the electric vehicle (EV) market, fluctuations in commodity prices, and rising input costs. Despite Hyundai Motor India's strong profitability, it faces stiff competition from Tata Motors, Maruti Suzuki, and Mahindra, especially in the burgeoning EV segment​.

• Oberoi Realty's board has approved a proposal to raise up to Rs 6,000 crore ($713Mn). (BS)

• Adani Enterprises has raised Rs 4,206 crore ($500Mn) through a share sale to insurance and mutual fund firms. (BS)

• Veritas Finance, backed by Multiples PE, is planning an IPO worth over Rs 3,000 crore ($356Mn). (MC)

This week’s mainboard IPO schedule

• Hyundai Motor India

  • Offering Period: 15 October - 17 October, 2024

  • Listing Date: 22 October, 2024

  • Issue Price: 1865-1960

  • Lot Size: 7

M&A / Investments

• Sudarshan Chemical is set to acquire Germany's Heubach for Rs 1,180 crore ($140Mn). (BS)

• Amicus invests Rs 125 crore ($14.8Mn) in Equirus as Federal Bank partially exits. (YS)

• Zee Media will invest Rs 3.75 crore ($445k) in the Times of India-backed dating app Flutrr. (YS)

VC