Hyundai Motor IPO: Anil Singhvi explains why you should AVOID this IPO

Hyundai Motor IPO: According to Zee Business Managing Editor Anil Singhvi, only high-risk investors should subscribe to the IPO, and that should be for the long term.

Hyundai Motor IPO: Singhvi said that only thosve inestors who have long-term views and will not be affected even if the prices come down after the listing should subscribe to this IPO.

Hyundai Motor IPO: Singhvi is of the view that it is much better to buy shares of Hyundai Motor India Ltd (HMIL) after the listing.

Hyundai Motor IPO: Singhvi said that it has usually been tough to make money on listing in big IPOs. "It has nothing to do with fundamentals. The best example is that of LIC," he added.

Hyundai Motor IPO: Singhvi pointed out these positives 

- Very strong brand

- Experienced promoters and management

- Second biggest passenger car company in India with 14% market share

- Strong financial track record

- Strong expansion plans of 32000 Cr

- Strong growth outlook

Hyundai Motor IPO: Here are some of the negatives 

- Biggest IPO but full OFS

- All money going to promoters not to the company

- IPO coming very late i.e. after 25 years of existence so it has missed the chance of big wealth creation by Indian investors

- Promoters need to reduce another 7.5% stake in future

- Promoters may increase royalty payments in future

- Group company KIA also

- Valuations are expensive compared to other peers

- Company yet to establish a strong presence in EV segment

Hyundai Motor IPO: HMIL's initial share sale starts on October 14 and will conclude on October 17. The bidding for anchor investors will open for a day on October 14.

Hyundai Motor IPO: The basis of allotment is expected to be finalised on Friday, October 18, 2024.

Hyundai Motor IPO:  Hyundai Motor India is set to make its stock market debut on the BSE and NSE on October 22, 2024.

Hyundai Motor IPO: Hyundai Motor India Ltd (HMIL), the Indian arm of South Korean automaker Hyundai, on Monday raised Rs 8,315 crore from anchor investors.

Hyundai Motor IPO: Kfin Technologies Limited is the registrar for the issue.