Very few of us may be aware that the South Korean parent company Hyundai Motors has another unlisted independent entity called Kia Motors in india with similar product lines of Hyundai which would result in to Cannibalization of Hyundai india’s products…
Any new product with high profit high margin products would be launched by the Korean parent company through Kia india rather than Hyundai india.
This is the very characteristics of all MNC operating in India …and Hyundai is not an exception.
Moreover , Hyundai came to india sometimes in 1990’s … Today after almost 30 years in India – what is its market share ?? just 14% as compared with Maruti with 42%.
They are very slow in Fast growing CNG and EV market …and it may not be able to dislodge Mahindra , Maruti from the fast growing SUV ,& CNG market leadership.
It may not be prudent to pay such a valuation to a company like Hyundai where there is conflict of interest in business of kia and Hyundai. If the parent company wants to reward indian share holders, they should have merged both the arms Kia india .& Hyundai india and then could have come for IPO.
Anyway very little listing gains expected and even if there is some listing gains , the price may not be sustainable
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