Hyundai Motor India IPO: Hyundai Motor India 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 under offer for sale through IPO. This money will go to the parent company of the company. If you are also going to invest then you should keep these important points of Red Herring Prospectus in mind.
1- Two companies of Hyundai Motor Group, Kia Corporation and Kia India Private Limited also do business similar to Hyundai Motor India. In such a situation, there may be a conflict of interest. Which may affect the business of 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 company’s identity, business and financial condition.
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3- Hyundai Motor India pays royalty to its parent company. According to SEBI rules, if Hyundai Motor pays royalty of 5 percent or more, it will affect the financial condition of the company. At present, Hyundai Motor India pays a royalty of 3.5 percent on the total revenue to the parent company.
4- According to the Economic Times report, the company depends on limited suppliers for parts and other materials. If the supply of parts and materials is affected in any way, it will affect the company’s operations. In such a situation, the company’s production and delivery timeline may be affected.
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5- The increase in prices of parts and materials will also affect the company’s business and results.
6- Maruti Suzuki dominates the car industry. Hyundai Motor, Tata Motor, Mahindra and Mahindra also control a large stake. 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, competition between these companies may increase further in the future.
7- Apart from all these factors, investors should also keep an eye on the market trend. At present 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 Foreign institutional investors have withdrawn more than Rs 50,000 crore from the domestic market in just 8 days of October. In such a situation, the listing of IPO will also depend on the market environment.
