Weekly Wrap-Up

Unlisted Share News

• BluSmart aims to achieve profitability within the next 5-6 quarters, with its annual run rate reaching $90 million and revenue expected to grow 70% in FY25. The company has raised Rs 300 crore in its ongoing Rs 425 crore Series B round, despite a recent NCD default of Rs 30 crore. BluSmart is also expanding its premium services, expecting their share to rise from 9% in FY24 to 40% by FY26.
• Tata Capital plans to raise $2 billion (?17,000 crore) via IPO but awaits NCLT's approval for its merger with Tata Motors Finance. The IPO, expected by FY25-end, will include fresh issues and an OFS by existing shareholders.
• India Post Payments Bank (IPPB) IPO Coming Soon!: The government has initiated steps to take IPPB public within the next 12 months, aiming for an IPO?before March 2026 to meet RBI licensing requirements. This is part of #IPPB’s plan to upgrade from a Payments Bank to a Small Finance Bank (SFB).
• Ather Energy converts 1.73 crore preference shares into 24.04 crore equity shares ahead of its ?3,100 crore IPO in April. The EV maker plans to use funds for a new factory, debt repayment, R&D, and marketing.
• InsuranceDekho, an insurtech firm backed by CarDekho, has raised ?611 crore in fresh funding from investors like Beams Fintech Fund, MUFG, and BNP Paribas Cardif. The company, which turned profitable in FY24, is planning an IPO by late 2026 or early 2027 and may merge with RenewBuy to strengthen its market position against PolicyBazaar.

Sectoral Highlights

IT Stocks Retreat on US Growth Concerns, NIFTY IT Enters ‘Bear Zone’ The NIFTY IT index plummeted to its lowest levels since July 2024, dropping 15% this week as selling pressure intensified across the sector. On Wednesday, the index officially entered bear market territory, having fallen more than 21% from its all-time high on December 13, 2024.

Among the biggest losers were L&T Technology, Wipro, Infosys, and LTI Mindtree. The sharp sell-off was triggered by recession fears amid US President Donald Trump’s strong tariff rhetoric and an increasingly pessimistic outlook on IT sector stocks by market experts.

Top Gainers & Losers

• IndusInd Bank Shares Plunge 28% Amid Derivatives Irregularities IndusInd Bank shares took a significant hit this week, tumbling 28% following the discovery of a ?2,100-crore accounting discrepancy in its derivatives portfolio. The situation was exacerbated by the Reserve Bank of India (RBI) granting only a one-year extension to the incumbent CEO instead of the expected three-year term. The stock saw a 4% decline on Monday, followed by a steep 27% drop on Tuesday. Although a partial recovery was observed on Wednesday, the stock ended Thursday down by nearly 2%. The bank has acknowledged certain discrepancies in its derivatives portfolio, which could impact 2.35% of its net worth as of December 2024.
• PB Fintech Falls 5% After Announcing New Investments PB Fintech, the parent company of Policybazaar.com, witnessed a 5% decline in its stock price on both Wednesday and Thursday after announcing a ?696 crore investment in its subsidiary, PB Healthcare Services. The investment aims to expand its healthcare-related business, but investors remain sceptical about profitability. The stock closed the week down by over 4% at ?1,331.9 per share on the NSE.
• MTNL Shares Surge 12% on Asset Monetisation Gains Shares of state-run MTNL saw a strong rally of over 12%, closing at ?48.88 per share on NSE on Thursday. The surge followed the government's announcement that the telecom company had earned ?2,134.61 crore through asset monetisation efforts till January 2025. The news buoyed investor sentiment, driving the stock upward despite the broader market fluctuations.

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IPO Corner

LG Electronics India Receives SEBI Nod for Rs 15,000 Crore IPO

LG Electronics India Ltd., a subsidiary of South Korean multinational LG, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its much-anticipated initial public offering (IPO). The issue is expected to be valued at approximately Rs 15,000 crore and will be entirely an offer for sale (OFS), meaning that the company itself will not receive any proceeds from the listing. Instead, the funds will go to its South Korean parent company, LG Electronics.

IPO Details

The IPO will see the parent company offload over 10.18 crore shares, representing a 15% stake in LG Electronics India. The final issue size is yet to be confirmed, but market estimates place it at around Rs 15,000 crore. As there is no fresh issue component in this offering, the listing will not result in any additional capital inflow for LG Electronics India.

According to the draft red herring prospectus (DRHP) filed in December 2024, the company has stated, "The price band and the offer price will be determined by our company in consultation with the book-running lead managers, based on an assessment of market demand for the equity shares of face value Rs 10 each, offered through the book-building process."

Book Running Lead Managers

The IPO is being managed by leading financial institutions, including:

• Morgan Stanley India
• Axis Capital
• JP Morgan India
• Citigroup Global Markets India
• BofA Securities India

KFin Technologies Ltd. has been appointed as the registrar for the issue.

Business Overview

LG Electronics India is one of the country's leading consumer electronics and home appliance brands, catering to both B2C and B2B clients. The company provides a diverse range of products, including:

• Refrigerators
• Washing machines
• LED TV panels
• Microwaves
• Inverter air conditioners

It also offers installation, maintenance, and repair services. The company operates two manufacturing facilities in Noida and Pune, which serve both domestic and export markets.

Financial Performance

For the financial year 2023-24, LG Electronics India reported revenue from operations of Rs 21,352 crore, reinforcing its strong market presence in India’s consumer electronics sector.

Market Impact

The upcoming IPO is expected to attract significant investor interest, given LG's robust brand value and extensive market reach in India. Analysts suggest that this listing could further cement LG Electronics India’s position in the industry while providing an opportunity for retail and institutional investors to participate in its growth story.