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New Delhi: The upcoming Initial Public Offering (IPO) of <keyword id="20214518" type="General" weightage="20" keywordseo="Hyundai-Motors-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyundai Motors India" meta.hostid="261" meta.entityid="Hyundai Motors India">Hyundai Motors India</keyword> has sparked significant interest in the Indian markets, but a recent report by <keyword id="20303939" type="General" weightage="20" keywordseo="Aequitas-Investments" source="keywords" meta.keywordsubtype="org" meta.entityname="Aequitas Investments" meta.hostid="261" meta.entityid="Aequitas Investments">Aequitas Investments</keyword> suggests it may not be as promising for <keyword id="19953411" type="General" weightage="20" keywordseo="Indian-investors" source="keywords">Indian investors</keyword> as anticipated. The report highlighted several concerns, pointing to broader industry challenges and the valuation mismatch as reasons for caution. It said "Given the headwinds that the Global <keyword id="20081560" type="General" weightage="20" keywordseo="automobile-industry" source="keywords">Automobile Industry</keyword> is facing coupled with signs of a slowdown in India, the upcoming IPO might not be a great deal for Indian Investors" Hyundai Motor Company, the parent firm based in South Korea, is set to offload shares worth Rs 25,000 crore through an Offer for Sale (OFS) in the Indian market. However, the report suggested that the current global headwinds facing the automobile industry, combined with signs of a slowdown in India, may make this IPO less attractive for Indian investors. One of the key issues flagged in the report is the valuation of Hyundai Motors India. The report noted that despite contributing only 6.5 per cent of Hyundai's global revenue and 8 per cent of its overall profitability, the Indian unit is expected to be valued at approximately 42 per cent of the parent company's market capitalization upon listing. This valuation discrepancy raises concerns about whether the IPO price is justified given the Indian unit's relatively modest contribution to Hyundai's global business. "Despite contributing only 6.5 per cent of the global revenues and 8 per cent of the profitability, Hyundai's India unit will be valued at approx. 42 per cent of the Parent Co.'s MCap on listing" the report added. From Hyundai's perspective, the move makes sense. In South Korea, Hyundai's stock currently trades at a price-to-earnings (P/E) ratio of just 5x, making the sale in India potentially more lucrative. The report argues that Hyundai is looking to take advantage of the relatively higher valuations in India. It said "From Hyundai's perspective it's a no-brainer as their stock in S.Korea trades at a measly 5x P/E" Hyundai Motor Group, which includes both Hyundai and Kia, is the third-largest automaker globally, having sold 7.3 million vehicles in 2023. While Hyundai Motors India does not have a stake in Kia Motors India, the parent company owns a controlling 34 per cent stake in Kia Motors globally and fully owns Genesis Motors, a luxury brand in South Korea.

Hyundai IPO might not be a great deal for Indian investors: Report

,<ul class="summary-list"><li>Alibaba shares rose 9% after news emerged founder Jack Ma was ceding control of affiliate fintech firm Ant Group.</li></ul><ul class="summary-list"><li>The gains also come on the back of a broader market rally in Asian shares, thanks to China's reopening.</li></ul><ul class="summary-list"></ul>Shares of Alibaba surged to a six-month high on Monday, joining a broad-based rally in Asia after China reopened its international borders, signaling the country's back in business.Shares of tech giant Alibaba led the gains — leaping 9% to a six-month high, before closing 8.7% higher, after news emerged over the weekend that founder <a href="https://www.businessinsider.com/jack-ma-appears-resurface-thailand-gives-up-control-ant-group-2023-1">Jack Ma was ceding control</a> of Alibaba affiliate Ant Group, following <a href="https://www.businessinsider.com/insider-guide-china-tech-crackdown-from-algorithms-to-crypto-mining-2021-10">China'</a><a href="https://www.businessinsider.com/insider-guide-china-tech-crackdown-from-algorithms-to-crypto-mining-2021-10">s crackdown on tech companies</a> since 2020. The stock had fallen 27% in 2022. Ma, an outspoken teacher turned tech titan, was once a high-profile jet-setter, and the face of China's Big Tech. But he has been lying low since October 2020, after giving a speech criticizing China's financial regulatory system. His words <a href="https://www.reuters.com/article/ant-group-ipo-suspension-regulators/how-billionaire-jack-ma-fell-to-earth-and-took-ants-mega-ipo-with-him-idUSKBN27L2GX" rel=" nofollow">angered the Chinese authorities,</a> prompting intense regulatory scrutiny of his businesses and a wider <a href="https://www.businessinsider.com/insider-guide-china-tech-crackdown-from-algorithms-to-crypto-mining-2021-10" rel="">crackdown on tech firms</a> in the country.The <a href="https://www.ft.com/content/2f7c7a10-2df3-4f1b-8d2a-eea0e0548713" target="_blank" rel="noopener">Financial Times</a> reported in November Ma had been <a href="https://www.businessinsider.com/alibaba-jack-ma-tokyo-japan-china-beijing-tech-crackdown-2022-11">living in Tokyo</a> for six months, and he was spotted last week in <a href="https://www.businessinsider.com/jack-ma-appears-resurface-thailand-gives-up-control-ant-group-2023-1">Bangkok, Thailand.</a>However, on December 29, <a href="http://www.cbirc.gov.cn/branch/chongqing/view/pages/common/ItemDetail.html" target="_blank" rel="noopener">China's Banking and Insurance Regulatory Commission</a> approved Ant to more than double its registered capital in its consumer finance arm to 18.5 billion Chinese yuan ($2.7 billion). This led to an 18% gain in Alibaba's stock price last week, as "the market believes the governmental investment means that the conflict between Jack Ma and the authorities has come to an end," Ming Lu, the China head at Singapore-based Aequitas Research wrote in a note on Monday.Furthermore, a <a href="https://www.caixinglobal.com/2023-01-09/china-wraps-up-two-year-tech-crackdown-top-official-says-101986872.html" target="_blank" rel="noopener">top Chinese central banker's suggested</a> over the weekend that Beijing's tech crackdown is coming to a close, fuelling positive sentiment in the country's tech sector.The Hang Seng Tech Index — an index that tracks the 30 largest tech companies listed in Hong Kong — closed 3.2% higher. Shares of Hong Kong-listed Chinese tech giants Tencent and NetEase closed 3.6% and 2.6% higher respectively.Overall, Asian shares also rallied on Monday. China's reopening boosted market sentiment after the country <a href="https://www.reuters.com/world/china/china-reopens-borders-final-farewell-zero-covid-2023-01-08/" target="_blank" rel="noopener">reopened international borders</a> on Sunday, allowing incoming travelers to enter without quarantine — a major reversal after three years of strict zero-COVID policies.Hong Kong's Hang Seng Index closed 1.9% higher, the Shanghai Composite Index gained 0.6%, and the Shenzhen Composite Index rose 0.7%.Outside China, South Korea's Kospi closed 2.6% higher, while Nikkei futures were up 0.9%. Japanese markets were closed for a public holiday on Monday.<h2>Markets are bouncing back, thanks to China's reopening</h2>There could be further upside ahead, Nomura analysts wrote in a note on Monday."China's reopening momentum has been faster-than-market, and our own, expectations – though it has resulted in a temporary surge in new cases and depressed mobility, we think investors should or will 'look through' and focus on an eventual economic and earnings recovery later in 2023," Nomura analysts in a note on Monday morning.While sentiment is high amid China's economic reopening, some analysts caution the ride may be bumpy as the country battles a <a href="https://www.businessinsider.com/china-covid-likely-million-cases-thousands-deaths-daily-2022-12">massive surge in COVID-19 infections</a>, after reversing pandemic policies abruptly last month."While that is a positive step towards a longer-term growth recovery, the near-term risk of virus waves are put into question, which could be catalysts for jitters over the coming weeks," Yeap Jun Rong, a market strategist at IG, an online trading platform, wrote on Monday.

Alibaba shares hit 6-month high after Jack Ma cedes control of Ant Group, amid a broad rally in Asian shares

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Hyundai IPO might not be a great deal for Indian investors: Report

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Alibaba shares hit 6-month high after Jack Ma cedes control of Ant Group, amid a broad rally in Asian shares

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