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Imagine a bustling jewellery market teeming with diamonds and gold. Amidst this glittering chaos, a small stall is trying to sell handcrafted gemstones. Even as newer and shinier outlets keep cropping up, all vying for attention, this gemstone store offers some of the oldest yet valuable jewels at a discount. Though they lack immediate sparkle, these rare gems reveal their value to the discerning buyer. This is how South Korea appears for many experts in global capital markets: a trove of undervalued gems, overshadowed by brighter, more aggressively marketed investment options. This undervaluation, known as the "<keyword id="24399183" type="General" weightage="20" keywordseo="korean-discount" source="keywords">Korean Discount</keyword>," reflects how South Korean companies are priced much lower than their global peers despite robust fundamentals — strong financial performance and consistent profitability. Contributing factors are many, ranging from opaque governance structures to geopolitical risks. But the fact stays, if you are a seasoned conglomerate listed in South Korea, you are likely undervalued. <keyword id="19906087" type="General" weightage="20" keywordseo="hyundai" source="keywords">Hyundai</keyword> Motor India Ltd. (HMIL), a subsidiary of the Korean giant Hyundai Motor Company (HMC), recently sought to escape this valuation trap by listing in India, a market where investor optimism commands premium pricing. But its valuation raised many eyebrows! Now that a month and a half has gone by since its listing, time is apt to examine if this gamble paid off. Will <keyword id="93460" type="General" weightage="100" keywordseo="hyundai-india" source="Orion">Hyundai India</keyword> justify its high valuation? Or does the listing highlight broader questions about the overheated valuation dynamics of Indian markets? A record-breaking <keyword id="19898327" type="General" weightage="20" keywordseo="ipo" source="keywords">IPO</keyword> but questions remain Hyundai Motor India’s mega Initial Public Offering (IPO), launched in October 2024, broke records by raising ₹27,870 crore, making it India’s largest-ever IPO. The offer was oversubscribed by 2.37 times, highlighting robust demand. But many investors remained sceptical: was this IPO an honest attempt to expand Hyundai’s footprint in India or was it trying to offer a way to cashout for existing investors and promoters? Or perhaps, is it an attempt by the Korean chaebol — a large family-owned business conglomerate — to break free from the aforementioned “Korean Discount”? When shares listed on October 22, these concerns seemingly weighed on the minds of most investors and the stock promptly dipped 5% below the issue price on the day. A tepid grey market performance had already foreshadowed this muted debut in the Indian markets. Now, after almost 35 trading sessions on Indian market, the stock remains almost exactly at price it listed on October 22 at Rs 1820—no gain, no loss. <h3>The gamble of hyper-valuation</h3>Much of this hesitation stemmed from Hyundai’s valuation. On listing, Hyundai was valued at $18 billion, positioning it as one of India’s most valuable automotive companies. However, such high valuations often temper investor enthusiasm, resulting in more cautious short-term outcomes. For most investors, the Price-to-Earnings (P/E) ratio is the most preferred parameter to gauge if a company is overvalued or undervalued. With a P/E ratio of 26.3, HMIL was priced significantly above the Indian automotive industry average of 24.4. Globally, automotive companies operate with much lower P/E ratios, reflecting mature market conditions and slower growth trajectories. HMIL’s South Korean parent Hyundai Motor Company (HMC) trades at a meagre 3.07, believe it or not! For Indian investors, the high premium hinted at overvaluation despite Hyundai’s strong domestic position. Such stark difference in valuation obviously sparked debates — is the Indian market assigning a premium to Hyundai Motor India’s growth potential, or is it simply reflecting the general exuberance around the prospects of the Indian economy? Another concern is the allocation of IPO proceeds. Hyundai’s IPO was structured as an offer for sale (OFS), meaning all funds raised would flow to the parent company rather than Hyundai India’s operations. Although Hyundai has committed to investing in R&amp;D for EVs and hybrids, critics argue that the lack of immediate reinvestment in India’s operations reflects a missed opportunity for domestic growth. Despite the early disappointment, Hyundai was confident that the valuation was fair. It did have some factors going for it, in addition to the fact that other auto giants like Mahindra &amp; Mahindra and <keyword id="19909974" type="General" weightage="20" keywordseo="maruti-suzuki" source="keywords">Maruti Suzuki</keyword> command even higher P/E ratios. And looking at the company fundamentals, it does seem like Hyundai is playing a long-term game. <h3>Hyundai in India: A proven track record</h3>Despite the initial stumble, Hyundai India’s long-term story is compelling. Since entering the Indian market in 1996, the automaker has sold over 8 million vehicles and firmly occupies the second spot in the domestic passenger vehicle market, trailing only Maruti Suzuki. Hyundai’s blockbuster SUV offerings, like the Creta and Venue, have been critical in building this dominance. Despite some challenge from Maruti Suzuki Brezza and Tata Punch, Creta has retained the tag of ‘most-selling SUV in India’ successfully so far this year. <div type="image" title="Hyundai" agency="Business Insider India" msid="116156234" hostid="261" caption="&amp;lt;p&amp;gt;Selling over 17,000 units per month on average this year, Creta has edged past major competitors to be the most-selling SUV in India in 2024. As Indian consumers preference continues to shift gradually towards premium products over budget segments, Hyundai stands to benefit (Wikimedia Commons / Canva)&amp;lt;/p&amp;gt;"></div> Selling over 17,000 units per month on average, Creta has edged past major competitors to be the most-selling SUV in India in 2024. As Indian consumers preference continues to shift gradually towards premium products over budget segments, Hyundai stands to benefit (Wikimedia Commons / Canva) Hyundai India’s market share of 14% in October 2024 underscores its clout. The company’s ability to tap into India’s premiumisation trend, where consumers increasingly prefer high-end vehicles, positions it well for growth. With plans to expand in electric vehicles (EVs) and hybrid technology, Hyundai is poised to capitalise on both domestic demand and export opportunities. The company’s ability to capitalize on its strong brand, extensive dealer network, and leadership in segments like SUVs and exports will determine its future performance. Hyundai’s strategic focus on expanding electric vehicle production also aligns with global trends towards sustainability, potentially positioning it as a leader in the segment. By listing in India, Hyundai aims not only to expand its operations but also to make India a global manufacturing and export hub for its products, especially SUVs and EVs. Therefore, despite early setbacks, Hyundai’s gamble seems to have paid off. The stock has rebounded, gaining 5% in the past month. More good news came in this week, as positive projections from Morgan Stanley and JPMorgan forecast an impressive 17-28% upside for the stock over the next year, reflecting growing investor optimism. <h3>A strategic pivot from the Korean Discount?</h3>The Korean Discount has long plagued South Korea’s chaebols, including Hyundai. Experts attribute this to several factors: <ul> <li>Chaebol Governance: South Korea’s conglomerates, known as chaebols, are often criticised for opaque governance structures and excessive family control.</li> <li>Geopolitical Risks: Tensions with North Korea contribute to investor caution, adding a layer of perceived risk.</li> <li>Limited Domestic Liquidity: South Korea’s relatively small investor base can constrain market activity and valuation potential.</li> </ul> By listing in India, Hyundai sought to unlock better valuations for its subsidiary, leveraging the optimism of Indian markets. India’s stock market has a trailing P/E ratio of 24.4, far above South Korea’s Kospi average of 16-17. The Indian market’s appetite for high-growth stories provides a fertile ground for companies like Hyundai to escape the valuation constraints of their home market. A successful IPO could encourage other such conglomerates to follow suit, setting a precedent. While Hyundai India has a robust track record, its future success hinges on navigating key challenges: <ul> <li>Supply Chain Vulnerabilities: Hyundai relies heavily on its Chennai plant, making it vulnerable to disruptions.</li> <li>Intensifying Competition: Domestic rivals like <keyword id="19906967" type="General" weightage="20" keywordseo="tata-motors" source="keywords">Tata Motors</keyword> and MG Motors are making aggressive inroads into the EV market.</li> <li>Policy Risks: The automotive sector’s reliance on government incentives for EVs and hybrids adds a layer of unpredictability.</li> </ul> High valuations come with risks. Hyundai will need to prove that it can sustain its growth trajectory in India, fend off competition from established players like Maruti Suzuki and Tata Motors, and navigate challenges such as supply chain disruptions and regulatory hurdles. If Hyundai successfully capitalises on its strong brand and market leadership, it could not only redefine its value but also serve as a case study for other Korean companies seeking better recognition and valuations in global markets. <h3>Is Hyundai saga a reflection of overheated Indian markets?</h3>The bigger question here is, does Hyundai’s IPO highlights a broader narrative about Indian markets’ premium valuations? With a trailing P/E ratio of 24.4, Nifty 50 index is among the highest in emerging markets. India’s stock markets consistently command a premium due to robust retail participation, strong economic growth prospects, and a burgeoning middle class. While this premium reflects optimism about India’s long-term growth story, it also signals potential risks of overvaluation, particularly in sectors like technology, automotive, and consumer goods. With a record ₹94,017 crore outflow by Foreign Portfolio Investors (FPIs) in October 2024, concerns about overheated valuations are mounting. Sustaining such unprecedented valuations required companies to consistently perform above global averages, and retaining robust earnings growth quarter after quarter remains a challenge in today’s uncertain world. For Hyundai, the high valuation is both an opportunity and a risk. While it underscores investor confidence, it narrows the margin of safety, making the stock vulnerable to corrections during economic downturns. Take for example, the high-profile IPO of Life Insurance Corporation of India (LIC) that raised over ₹21,000 crore. Its listing was met with disappointment as the stock began trading at a 9% discount to its issue price, and subsequent performance has remained subdued. LIC’s post-IPO journey also highlights how inflated valuations can lead to long-term underperformance, as the stock gave only 12% return over the past 30 months when even the Nifty 50 index went up by over 44%. This happens when when the company's growth narrative fails to align with its pricing. Despite being a household name with a dominant market share, LIC's stock has struggled to meet expectations, partly due to concerns about its operating efficiency and the limited use of IPO proceeds for growth initiatives. Make no mistake, Hyundai Motor India’s IPO is a landmark event! It showcases the potential for Korean companies to leverage emerging markets like India for better valuations. It also shows that strong fundamentals can help justify a company such premium valuations even amidst bearish economic prospects. However, it also serves as a cautionary tale about the risks of overvaluation. For Hyundai, the next steps involve proving its long-term growth story, navigating competitive challenges, and maintaining investor confidence. For Indian markets, Hyundai’s IPO underscores the need to balance optimism with realistic expectations as they continue to evolve as global investment hotspots. To sustain the country’s economic narrative as a land of unmatched opportunities, corporate India must work on improving long-term fundamentals and mitigating long-term risks. As global investors watch closely, Hyundai India’s success or failure could shape how international companies view India as a listing destination in the years to come.

Tackling the 'Korean Discount': A deep dive into curious case of Hyundai Motor India's market listing

<ul><li>The agrochemical company <keyword id="13053010" type="General" weightage="100" keywordseo="dharmaj-crop-guard" source="Orion">Dharmaj Crop Guard</keyword> is likely to announce its share allotment status on December 5. </li><li>Overall, the IPO saw decent demand from investors amidst volatile market conditions, being subscribed 35.49 times. </li><li>The shares will be listed on December 8 on the exchanges. </li></ul>The agrochemical company Dharmaj Crop Guard is likely to announce the allotment status of its initial public offering (IPO) on Monday, December 5. Overall, the IPO received decent demand from investors amidst volatile market conditions, being subscribed 35.49 times. The qualified institutional buyer portion was subscribed 48.21 times. The portion reserved for non-institutional investors witnessed a subscription of 52.29 times. The retail portion, on the other hand, was subscribed 21.53 times. The grey market premium (GMP) for the company’s shares stood at ₹55 per share. The Ahmedabad-based agrochemical company distributes and markets insecticides, fungicides, herbicides, plant growth regulators, micro fertilisers and antibiotics to the B2B and B2C segments. Here is how to check <keyword id="15699155" type="General" weightage="20" keywordseo="Dharmaj-Crop-Guard-IPO-allotment-status" source="Orion">Dharmaj Crop Guard IPO allotment status</keyword> on the stock exchange websites: <ul><li>Go to the <a href="https://www.bseindia.com/investors/appli_check.aspx">BSE website</a> or NSE website<a href="https://www1.nseindia.com/products/dynaContent/equities/ipos/ipo_login.jsp"> here</a>. </li><li>On <keyword id="35140" type="General" weightage="50" keywordseo="bse" source="Orion">BSE</keyword>, Select 'Equity' and then from the dropdown, select ‘Dharmaj Crop Guard’. </li><li>Now, enter your application number and PAN. </li><li>Click on 'Search'. </li><li>Please note the details will only be available once the shares are allotted. </li></ul>You can also visit the registrar website (Link Intime India) to check your application status. <ul><li>Visit the registrar's website <a href="https://linkintime.co.in/MIPO/Ipoallotment.html">here</a>. </li><li>Click on 'Select company' and click on ‘Dharmaj Crop Guard’. </li><li>Once the company is selected, you will have to enter either your PAN details, the application number, or the client ID. </li><li>Enter the captcha code and click ’submit’. </li></ul>Once you hit 'submit', the status of your application will appear on the screen. Please ensure the details that you provide are correct. It will show the number of shares you subscribed to and the number of shares allotted to you. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/bank-of-baroda-expects-25-35-basis-points-rate-hike-from-dec-5-7-rbi-policy-meet/articleshow/95992359.cms">Bank of Baroda expects 25-35 basis points rate hike from Dec 5-7 RBI policy meet</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/this-mumbai-startup-is-making-tearable-laundry-sheets-bamboo-based-facial-tissues-and-more-to-replace-plastic/articleshow/95946533.cms">This Mumbai startup is making tearable laundry sheets, bamboo-based facial tissues and more to replace plastic</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/news/govt-approves-pli-scheme-for-making-drones-with-outlay-of-rs-120-cr-comes-out-with-norms/articleshow/95981288.cms">Govt approves PLI scheme for making drones with outlay of Rs 120 cr, comes out with norms</a>

Dharmaj Crop Guard IPO : Here’s how you can check the allotment status

<ul><li>The agrochemical company <keyword id="10058507" type="UNKNOWN" weightage="20" keywordseo="Heranba-Industries">Heranba Industries</keyword> listed nearly 43.5% higher and was trading at ₹900 a piece, compared to the IPO issue price of ₹626-627.</li><li>The company's market value expanded to ₹3,678 crore after the listing.</li><li>Heranba is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda-cyhalothrin.</li><li>Check out the latest news and updates on <a href="https://www.businessinsider.in/">Business Insider</a>.</li></ul>The agrochemical company Heranba Industries made a bumper debut on the bourses today. The share price of the Gujarat-based crop protection chemical manufacturer, exporter and marketer listed nearly 43.5% higher and was trading at ₹900 a piece, compared to the IPO issue price of ₹626-627. Within minutes after listing, the shares of Heranba gained 2.14% of their value and were trading at ₹919.25 apiece at 10:05 am in an otherwise tepid market. The company's market value expanded to ₹3,678 crore after the listing. Heranba is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda-cyhalothrin. The bumper listing was already on the cards! Heranba's public issue had received positive reviews from top brokerages, and the grey market was also ready to pay a hefty premium for its shares. "Company return ratios are superior to peers (ROE is above 30%). Company has a strong financial position and has been generating positive cash flow. We expect a good listing for the company," said Keshav Lahoti, associate equity analyst at Angel Broking, in a post IPO note. The IPO garnered a massive response from investors and was oversubscribed nearly 88 times — making it the<a href="https://www.chittorgarh.com/report/top_10_ipo_by_subscription_yearly/10/"> second most successful IPO</a> in terms of subscription in 2021. According to data from the stock-exchanges, the issue received bids for 58.15 crore equity shares against an offer size of 69.81 lakh shares. The shares were commanding a premium of<a href="https://www.ipowatch.in/2021/02/heranba-industries-ipo-gmp-grey-market.html"> ₹260-270</a> in the grey market over the set price band of ₹626-627 per share, ahead of the listing. However, the grey market is not an official measure of the market premium. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/apple-find-my-stalking-airtags-item-safety-alerts/articleshow/81342449.cms">Apple’s new Find My feature updated to prevent stalking as launch of the rumoured AirTags nears</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/apple-find-my-stalking-airtags-item-safety-alerts/articleshow/81342449.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/regulating-digital-news-is-important-but-freedom-of-press-is-precious/articleshow/81341289.cms">OPINION: Regulating digital news is important but freedom of press is precious</a>

Heranba Industries makes a bumper debut on stock exchanges — shares soar 44% over the issue price band

With the early trends in all 182 seats of Gujarat Assembly coming in, the ruling Bharatiya Janata Party (<keyword id="14666" type="General" weightage="100" keywordseo="bjp" source="Orion">BJP</keyword>) was seen inching towards an all-time high record of 149 seats. As per the latest trends, the party was leading in 149 seats, the number of seats which the <keyword id="1575" type="General" weightage="80" keywordseo="congress" source="Orion">Congress</keyword> had won in the 1985 election under the leadership of Madhavsinh Solanki, in what remains a record till date. The BJP was all set for a sweeping victory for the eighth term in a state where it has not lost an election since 1995. The Congress was ahead in 19 seats and the Aam Aadmi Party (<keyword id="6356115" type="General" weightage="80" keywordseo="aap" source="Orion">AAP</keyword>) in 9, according to the first trends of all the seats in the state Assembly as reported by the Election Commission. The others were leading in five seats, including a candidate of the Samajwadi Party in Kutiyana seat of Porbandar district and four independents in Dhanera, Vaghodia, Santrampur and Deesa. After registering initial gains, the Congress and AAP slipped while the BJP continued to improve its tally to reach the tally of 149. A number of sitting BJP MLAs were among those leading in the initial trends. Party leaders like Jitu Vaghani, Purnesh Modi, Kanubhai Desai and Hardik Patel were among those ahead of their rivals. AAP's chief ministerial candidate Isudan Gadhvi was leading in Khambhalia. The party's candidates were also leading in Jamjodhpur, Dediapada, Dhari, Vyara, Botad, Bhiloda, Gariadhar and Limbayat. AAP state chief Gopal Italia was trailing in Katargam seat and Alpesh Kathiriya was trailing in Varachha Road seat, both in Surat. The BJP has so far received 53.62 per cent vote share, Congress 26.57 per cent and AAP 12.80 per cent. The results of the two-phase elections, held earlier this month, will be watched more for the performance of the Congress and the new poll entrant AAP, which seem to be locked in a battle to grab the status of the main opposition party in the state. While the Congress was not expected to replicate its creditable performance of the last Assembly elections in 2017, a good showing by the AAP would have helped its leader Arvind Kejriwal cement his place as a key challenger to Prime Minister <keyword id="6354477" type="General" weightage="50" keywordseo="narendra-modi" source="Orion">Narendra Modi</keyword> in the parliamentary elections due in 2024. The Modi government is struggling with issues like rising inflation, slowing growth and joblessness, but economic troubles are unlikely to dent the BJP's popularity in Gujarat that has been a bastion of the party for decades and where Modi was the chief minister from 2001 to 2014. Gujarat has 182 Assembly seats and the majority mark is 92. Exit polls have predicted the BJP will comfortably win a seventh straight term -- an outcome that will equal the Left Front's feat in West Bengal. For the Congress, its role as the main challenger to the BJP is at stake. Thursday's results will reveal if the party's silent campaign has cut ice with people. The party's campaign, mostly shouldered by local leaders, has leaned on door-to-door canvassing for votes as its leader Rahul Gandhi, who had aggressively campaigned in the 2017 elections, chose to stay away to focus on the Bharat Jodo Yatra. For the AAP, which carried out a high-decibel campaign, the elections in Gujarat are an opportunity to establish itself as a pan-national party and a challenger to BJP at the national level. Emboldened by the victory in the Delhi municipal elections, the AAP hopes its politics of welfarism will be accepted by the people in Gujarat. That said, the BJP has had to battle anti-incumbency after being in power for 25 years. It is banking on Modi's charisma and appeal to contain anti-incumbency. Modi addressed as many as 30 election rallies. Unemployment, price rise, water not reaching certain pockets of the state, land acquisition for big projects and farmers not getting proper compensation for crop damage due to excess rains were among key issues of the campaign this time. The voter turnout this time dropped 4 per cent compared to 2017, signalling fatigue and possible disillusionment among some supporters of BJP. While the contest in Gujarat has traditionally been between the BJP and Congress, it turned three-cornered this time with the entry of the AAP. Altogether 182 counting observers and as many election officers along with 494 assistant election officers will be on duty for the entire counting process, the official said. A three-tier security system has been ensured at all the counting centres with local police and personnel of State Reserve Police Force (SRPF) and Central Armed Police Force (CAPF), the CEO said. The fate of Chief Minister Bhupendra Patel, Aam Aadmi Party (AAP)'s chief ministerial candidate Isudan Gadhvi, youth leaders Hardik Patel, Jignesh Mevani and Alpesh Thakor, among a total 1,621 candidates will be decided on Thursday. A total of 70 political parties and 624 independents were in the fray. Apart from the main rivals BJP, Congress and AAP, 101 candidates from Bahujan Samaj Party (BSP), and 26 from Bharatiya Tribal party (BTP) also contested. In the 2017 Assembly polls, BJP won 99 seats and Congress 77 seats, while two seats went to BTP, one to NCP, and three to independents. Ahead of this month's elections, the BJP's number in the House stood at 110 and Congress at 60 after 20 MLAs who won on Congress seats switched over to the BJP in the last five years, three of them quitting just ahead of the elections. SEE ALSO: <a href="https://www.businessinsider.in/business/news/rate-hike-to-affect-housing-demand-in-the-mid-and-affordable-segments-say-experts/articleshow/96076359.cms">Rate hike to affect housing demand in the mid and affordable segments, say experts</a> <a href="https://www.businessinsider.in/stock-market/news/dharmaj-crop-guard-lists-at-12-premium-but-below-grey-market-expectations/articleshow/96075246.cms">Dharmaj Crop Guard lists at 12% premium but below grey market expectations</a> <a href="https://www.businessinsider.in/tech/news/top-searches-on-google-in-india-in-2022/slidelist/96075404.cms">IPL to KGF Chapter 2 to FIFA World Cup, here are the top Google searches in India in 2022</a>

You Searched For "Dharmaj Crop IPO listing gains" and got 4 results

Tackling the 'Korean Discount': A deep dive into curious case of Hyundai Motor India's market listing

Deekshith Pinto

Dharmaj Crop Guard IPO : Here’s how you can check the allotment status

Eetika Kapoor

Heranba Industries makes a bumper debut on stock exchanges — shares soar 44% over the issue price band

Navdeep Yadav

Gujarat assembly elections: BJP inches towards all-time high record of 149 seats

PTI

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