Latest news with #Jefferies
Yahoo
2 hours ago
- Business
- Yahoo
India's HDB Financial IPO pricing not influenced by 70% premium in 'grey market', bankers say
By Siddhi Nayak, Vivek Kumar M and Bharath Rajeswaran MUMBAI (Reuters) -The initial public offering of India's HDB Financial has been priced based on the fundamentals of the business, unaffected by the roughly 70% premium the stock is trading at in the informal 'grey market' for unlisted securities, bankers said on Friday. Shares in the lender will be sold in a price band of 700 rupees to 740 rupees per share ($8.06-$8.52), valuing HDB Financial at $7.1 billion at the upper end of the band. The shares were traded around 1,200 rupees to 1,250 rupees in the 'grey market'. "This price has been determined basis extensive roadshows," said Jibi Jacob, head of equity capital markets at Jefferies India, one of the bankers to the issue. "We have no influence on what is happening on the unlisted side," Jacob said at a press conference in Mumbai. HDB Financial's IPO, the largest for an Indian non-banking financial company, opens for subscription on June 25, with large institutions bidding a day earlier. The firm, which lends across segments such as personal and business loans, operates 1,747 branches nationwide. India's largest private lender, HDFC Bank, holds a 94% stake in the firm. The IPO pricing has been determined on the fundamentals of the franchise and how key peers are trading, said Sonia DasGupta, head of the investment banking division at JM Financial, another banker to the issue. At 740 rupees per share, the price-to-book ratio, a key measure of valuation, works out to 3.72 for HDB, in line with peers such as Bajaj Finance and Shriram Finance. India's red-hot IPO streak has cooled in 2025, following a blockbuster year in 2024 that saw record capital raised through new listings. So far this year, nearly 100 firms have hit the market, raising about $4 billion, a decline from the 137 IPOs and $4.3 billion fundraise in the year-ago period, according to data compiled by LSEG. Analysts attribute tepid retail investor demand to aggressive IPO pricing, as the Nifty 50 trades nearly 6% below its record high from last September. The bull run in Indian markets post the COVID-19 crisis led to valuations of unlisted firms inflating beyond fundamentals, said Arun Kejriwal, founder of Kejriwal Research and Investment Services. "HDB's approach is a timely reminder that IPO pricing should be grounded in reality, not speculative hype," Kejriwal said. ($1 = 86.6040 Indian rupees) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 hours ago
- Business
- Yahoo
GMS says board will review QXO takeover proposal of $95.20 per share
GMS Inc. (GMS) confirmed that it has received an 'unsolicited' proposal from QXO, Inc. (QXO) to acquire all outstanding shares of GMS for $95.20 per share in cash. 'Consistent with its fiduciary duties and in consultation with its independent legal and financial advisors, the GMS Board of Directors will carefully review and evaluate the unsolicited proposal to determine the course of action that it believes is in the best interests of the Company and all GMS shareholders,' the company said in a statement. GMS does not intend to comment further on QXO's proposal until the board has completed its review. GMS shareholders do not need to take any action at this time. Jefferies is acting as the company's financial advisor. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on GMS: Disclaimer & DisclosureReport an Issue GMS Inc. Reports Resilient Performance Amid Market Challenges GMS Inc. Earnings Call: Mixed Sentiment Amid Challenges Closing Bell Movers: GMS up 15% on takeover proposal from QXO QXO proposes to acquire GMS Inc. for $95.20 per share in cash GMS Inc. jumps 21% to $98 per share after takeover proposal from QXO Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Reuters
3 hours ago
- Business
- Reuters
India's HDB Financial IPO pricing not influenced by 70% premium in 'grey market', bankers say
MUMBAI, June 20 (Reuters) - The initial public offering of India's HDB Financial has been priced based on the fundamentals of the business, unaffected by the roughly 70% premium the stock is trading at in the informal 'grey market' for unlisted securities, bankers said on Friday. Shares in the lender will be sold in a price band of 700 rupees to 740 rupees per share ($8.06-$8.52), valuing HDB Financial at $7.1 billion at the upper end of the band. The shares were traded around 1,200 rupees to 1,250 rupees in the 'grey market'. "This price has been determined basis extensive roadshows," said Jibi Jacob, head of equity capital markets at Jefferies India, one of the bankers to the issue. "We have no influence on what is happening on the unlisted side," Jacob said at a press conference in Mumbai. HDB Financial's IPO, the largest for an Indian non-banking financial company, opens for subscription on June 25, with large institutions bidding a day earlier. The firm, which lends across segments such as personal and business loans, operates 1,747 branches nationwide. India's largest private lender, HDFC Bank ( opens new tab, holds a 94% stake in the firm. The IPO pricing has been determined on the fundamentals of the franchise and how key peers are trading, said Sonia DasGupta, head of the investment banking division at JM Financial, another banker to the issue. At 740 rupees per share, the price-to-book ratio, a key measure of valuation, works out to 3.72 for HDB, in line with peers such as Bajaj Finance ( opens new tab and Shriram Finance ( opens new tab. India's red-hot IPO streak has cooled in 2025, following a blockbuster year in 2024 that saw record capital raised through new listings. So far this year, nearly 100 firms have hit the market, raising about $4 billion, a decline from the 137 IPOs and $4.3 billion fundraise in the year-ago period, according to data compiled by LSEG. Analysts attribute tepid retail investor demand to aggressive IPO pricing, as the Nifty 50 (.NSEI), opens new tab trades nearly 6% below its record high from last September. The bull run in Indian markets post the COVID-19 crisis led to valuations of unlisted firms inflating beyond fundamentals, said Arun Kejriwal, founder of Kejriwal Research and Investment Services. "HDB's approach is a timely reminder that IPO pricing should be grounded in reality, not speculative hype," Kejriwal said. ($1 = 86.6040 Indian rupees)
India Gazette
4 hours ago
- Business
- India Gazette
Valuation concerns return to Indian market, especially in Midcap stocks: Jefferies
New Delhi [India], June 20 (ANI): According to a report by Jefferies, the Indian stock market is once again facing concerns around high valuations, particularly in the midcap segment. The report pointed out that the recent market rally has pushed valuations to high levels, raising questions about sustainability and risks going forward. Jefferies stated, 'The rally in the market means valuations have become an issue again, particularly in the mid-cap space'.The report highlighted that the benchmark Nifty Index is now trading at 22.2 times its 12-month forward earnings after rising 14.1 per cent from its recent low on April 7. The midcap space has seen even sharper gains. The Nifty Mid-Cap 100 Index has surged by 23.7 per cent since April 7 and is now trading at a steep valuation of 27.1 times 12-month forward earnings. Due to such high valuations, many corporates are once again placing equity in the market to take advantage of the bullish sentiment. The report added that the equity supply has increased sharply, with companies raising around USD 7.2 billion in May and USD 6 billion so far in June. Jefferies noted that this wave of equity supply poses the main risk to the market. Before the market correction that began in late September last year, monthly equity supply was running at around USD 7 billion. The report also highlighted a shift in market focus since the Union Budget announcement on February 1. There has been a noticeable rotation from investment-led themes to consumption-led themes. This shift has been supported by a softer monetary policy environment, which has benefited consumer finance stocks. However, the report acknowledged that any upcoming investment cycle is likely to be slower and more prolonged, unlike the boom-bust cycle that occurred during FY03-FY17, which led to overcapacity, especially in the power sector. The report outlined that while the Indian markets are enjoying a strong rally, especially in the midcap space, rising valuations and heavy equity supply could pose risks. (ANI)
Times of Oman
5 hours ago
- Business
- Times of Oman
Valuation concerns return to Indian market, especially in Midcap stocks: Jefferies
New Delhi: According to a report by Jefferies, the Indian stock market is once again facing concerns around high valuations, particularly in the midcap segment. The report pointed out that the recent market rally has pushed valuations to high levels, raising questions about sustainability and risks going forward. Jefferies stated, "The rally in the market means valuations have become an issue again, particularly in the mid-cap space". The report highlighted that the benchmark Nifty Index is now trading at 22.2 times its 12-month forward earnings after rising 14.1 per cent from its recent low on April 7. The midcap space has seen even sharper gains. The Nifty Mid-Cap 100 Index has surged by 23.7 per cent since April 7 and is now trading at a steep valuation of 27.1 times 12-month forward earnings. Due to such high valuations, many corporates are once again placing equity in the market to take advantage of the bullish sentiment. The report added that the equity supply has increased sharply, with companies raising around USD 7.2 billion in May and USD 6 billion so far in June. Jefferies noted that this wave of equity supply poses the main risk to the market. Before the market correction that began in late September last year, monthly equity supply was running at around USD 7 billion. The report also highlighted a shift in market focus since the Union Budget announcement on February 1. There has been a noticeable rotation from investment-led themes to consumption-led themes. This shift has been supported by a softer monetary policy environment, which has benefited consumer finance stocks. However, the report acknowledged that any upcoming investment cycle is likely to be slower and more prolonged, unlike the boom-bust cycle that occurred during FY03-FY17, which led to overcapacity, especially in the power sector. The report outlined that while the Indian markets are enjoying a strong rally, especially in the midcap space, rising valuations and heavy equity supply could pose risks.
