Finvezto Daily Market Bytes, 31 Dec 2024
Adani's Wilmar Exit; Ather Gets IPO Green Signal; Lupin's Insulin Power Move; Key Stock Updates
In today’s edition, we cover:
Adani's Wilmar Exit
Ather Gets IPO Green Signal
Lupin's Insulin Power Move
Key Stock Updates
Adani's Wilmar Exit
Adani Group plans to sell its entire stake in Adani Wilmar to raise $2 billion, ending a 25-year partnership.
It all began in 1999 when Adani joined hands with Singapore's Wilmar International.
From a single 600 MT/day oil refinery in Mundra, they built an empire that put Fortune oil in millions of Indian kitchens.
Adani Wilmar now is valued at ₹42,785 crore. They recently went public in 2022.
So, Why is Adani Exiting?
Adani wants to use the proceeds to strengthen their Infrastructure play - “Energy, Transport & Logistics”.
For Wilmar?
They inherit a powerhouse that has 18.3% market share in India's branded edible oil market.
Ather Gets IPO Green Signal
Electric scooter maker Ather Energy gets SEBI approval for its ₹3,100 crore IPO.
Ather is India's 4th largest electric 2W maker with ~12% market share.
The IPO includes a fresh issue to raise ₹3,100 crore and an offer for sale (OFS) of 2.2 crore shares.
So, where is all this money going?
Ather is planning a new factory in Maharashtra. They will also be using the money to fund R&D, marketing, and clearing off some debts.
They seem to be eyeing a $2.5 billion valuation when they launch in early 2025.
Co-Founders - Tarun Mehta and Swapnil Jain - will sell a million shares each.
Hero MotoCorp holds a 37.2% stake in Ather and they are not selling yet.
Lupin's Insulin Power Move
Pharma company Lupin acquires Huminsulin portfolio from Eli Lilly in India, expanding its diabetes care offerings.
Lupin has already been distributing these insulin products through their partnership with Eli Lilly.
The portfolio includes four variants: Huminsulin R, NPH, 50/50, and 30/70. All target both type 1 and type 2 diabetes management.
India's diabetes numbers keep climbing and insulin often becomes inevitable as type 2 diabetes progresses.
Lupin’s focus is to provide affordable healthcare at scale. With Huminsulin, Lupin is positioning itself as a one-stop shop for diabetes care in India.
Lupin's stock shot up yesterday and it has shot up almost 75% in the last 1 year.
Key Stock Updates
NEW ORDERS:
🟢 Rail Vikas Nigam Limited (RVNL) secured Central Railway project worth ₹137.2 Cr.
🟢 Mazagon Dock Shipbuilders signed ₹1,990 Cr defence contract with Ministry of Defence for Air Independent Propulsion Plug.
🟢 Jakson Group secured 50 MW solar rooftop project worth ₹200 Cr, marking one of India's largest rooftop orders.
🟢 KEC International secured new orders worth ₹1,073 Cr across T&D, civil, transportation, and cables business.
PARTNERSHIPS/INVESTMENTS/ACQUISITIONS:
🟢 Reliance Industries acquired Karkinos Healthcare for ₹375 Cr through subsidiary, strengthening healthcare technology portfolio.
🟢 Lupin acquired Huminsulin from Eli Lilly in India, expanding diabetes portfolio with insulin human formulations.
🟢 Prestige Estates Projects acquired 49% stake in WSI Falcon Infra Projects to develop IT park in Chennai.
🟢 Gokul Agro Resource acquired Mangalore Edible Oil Refinery's assets worth ₹105.5 Cr, adding 100 TPD capacity.
🟢 British International Investment invested final tranche of ₹650 Cr in Mahindra Electric, taking total investment to ₹1,850 Cr.
🟢 Refex Renewables acquired 51% stake in Vyzag Bio-Energy Fuel operating compressed bio-gas plant.
🟢 Adani Enterprises to exit 44% stake in Adani Wilmar in two phases, focusing on infrastructure platforms.
CORE BUSINESS UPDATES:
🔴 Pratap Snacks reported fire damage at Jammu manufacturing unit, disrupting operations and damaging inventory.
🟢 Shriram Properties sold 3.9-acre plot in Chennai to healthcare and education group.
CORPORATE ACTIONS:
🟢 ITC to tranfer ₹1,500 Cr cash to demerged ITC Hotels for growth plans and contingencies.
🔴 EaseMyTrip promoter Nishant Pitti to sell remaining 14.21% stake via block deal for ₹780 Cr.
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Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This daily update highlights market trends for your awareness. It does not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.