Hyundai Motor India IPO:Hyundai Motor India's IPO will open for anchor investors tomorrow. The company's IPO will open for retail investors on October 15. The size of the company's IPO is Rs 27,870 crore. The company will issue 14.2 crore shares through the IPO under Offer for Sale. This money will go to the company's parent company. If you are also going to invest, then you should keep these key points of Red Herring Prospectus in mind.
1-Hyundai Motor Group's two companies Kia Corporation and Kia India Private Limited also do business similar to Hyundai Motor India. In such a situation, there can be a conflict of interests. Which can affect the business of the companies.
2-Hyundai Motor India is dependent on the promoter company Hyundai Motor Company for its parts, materials and research and development. In such a situation, if there is any change in the relationship between the two, it will affect the identity, business and financial condition of the company.
3-Hyundai Motor India pays royalty to its parent company. As per SEBI rules, if Hyundai Motor pays royalty of 5 percent or more, then it will affect the financial condition of the company. Currently, Hyundai Motor India pays royalty of 3.5 percent on total revenue to the parent company.
4-According to the Economics Times report, the company depends on a limited number of suppliers for parts and other materials. If the supply of parts and materials is affected in any way, it will impact the company's operations. In such a situation, the company's production and delivery timeline may be affected.
5-The increase in prices of parts and materials will also impact the company's business and results.
6-Maruti Suzuki dominates the car industry. Hyundai Motor, Tata Motor, Mahindra and Mahindra also control a large share. Kia and MG are also gradually increasing their presence in the Indian car market. Apart from these, Nissan, Toyota, Skoda and Honda are trying to increase their market share. In such a situation, the competition between these companies may increase further in the coming time.
7-Apart from all these factors, investors should also keep an eye on the market trend. Currently, the health of the stock market is not good. Foreign institutional investors have withdrawn more than Rs 50,000 crore from the domestic market in just 8 days of the month of October. In such a situation, the listing of the IPO will also depend on the market environment.
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