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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>Shares of newly listed food delivery company <keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> gained 22% since its listing on July 23.</li><li>The company’s market capitalisation has reached ₹1.10 lakh crore as of July 26.</li><li>While Zomato stock is on an uptrend, experts still doubt the fundamentals of the company to have bagged such a huge valuation.</li></ul>After a strong listing on exchanges on July 23, shares of food delivery firm Zomato continue to impress investors as it gained over 22% from its listing price on July 23. On July 26, shares of the company closed 11.92% higher at ₹140.85. Promoters and investors of Zomato made a huge chunk from its 50% premium listing of the shares. However, is the food delivery company, which is into losses, really worth so much of valuation? This question has been bothering many analysts and market experts. Ace stock market investor Rakesh Jhunjhunwala, on July 24, has reportedly described the company’s stock as ‘tulip mania’. Tulipmania is a major commodity bubble, which took place in the 17th century when Dutch investors began to madly purchase tulips, pushing their prices to unprecedented highs. “Show me the cash-flow! Zomato received ₹1 lakh crore market capitalisation yesterday (July 23), but when is it getting ₹3,000 crore of cash-flow? It doesn’t matter how much valuations you get. What is more important is how long the company lasts. The world is giving too much valuations to the digital [sic] change. Such valuations are not sustainable, in my view,” <a href="https://www.money9.com/news/markets/rakesh-jhunjhunwala-says-zomato-a-tulip-mania-raises-questions-on-cashflow-60109.html">said Jhunjhunwala</a> during a keynote address at an event organised by Equirus. Not only Jhunjhunwala, but famous valuation expert Aswath Damodaran, Professor of finance at the Stern School of Business said Zomato is a money-losing, cash burning enterprise with overvalued valuation. On his <a href="http://aswathdamodaran.blogspot.com/2021/07/the-zomato-ipo-bet-on-big-markets-and.html">blog</a> -- The <keyword id="9029084" type="UNKNOWN" weightage="20" keywordseo="zomato-IPO">Zomato IPO</keyword>: A Bet on Big Markets and Platforms! -- Damodaran explained his rationale on why he said the company’s stock is overvalued and expensive. “With my upbeat story of growth and profitability, the value that I derive for equity is close to ₹39,400 crore (about $5.25 billion), translating into a value per share of ₹41. That may seem like a lot to pay for a money-losing company with less than ₹2,000 crore in revenues in the most recent year… That said, the stock's pricing (₹72-75 per share) makes it too expensive, notwithstanding my story,” said Damodaran. Meanwhile, many analysts have cautioned against investing in Zomato due to its history of net losses and anticipated increasing expenses in the future. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/check-rolex-rings-ipo-open-and-close-date-allotment-listing-date-and-everything-you-need-to-know/articleshow/84755686.cms">Another IPO in July: Rolex Rings to raise ₹731 crore through public listing </a> <a href="https://www.businessinsider.in/business/corporates/news/lok-sabha-mp-mahua-moitra-says-delisting-of-adani-power-need-to-be-looked-into/articleshow/84752594.cms">Adani Group in spotlight again—Lok Sabha MP Mahua Moitra says delisting of Adani Power needs to be ‘looked into’</a>

While investors are still upbeat on Zomato stock, experts find it overvalued and expensive

<ul class="summary-list"><li><keyword id="6396674" type="DEFINITION" weightage="60" keywordseo="Jessica-Alba">Jessica Alba</keyword>'s <keyword id="2404941" type="PERSON" weightage="60" keywordseo="The-Honest-Company">The Honest Company</keyword> is set to begin trading on the Nasdaq at a valuation over $1.4 billion. </li><li>New Constructs' <keyword id="3498946" type="PERSON" weightage="60" keywordseo="david-trainer">David Trainer</keyword> said the company's expected valuation is way too high. </li><li>The company has never turned a profit and faces competition from well-established competitors, he said. </li></ul>The Honest Company's IPO is overvalued, according to <a href="https://www.newconstructs.com/david-trainer/">David Trainer</a>, CEO of investment research firm New Constructs.At the midpoint of its IPO price-range, Jessica Alba's sustainable products company has an expected valuation of roughly $1.4 billion, which Trainer says is "honestly overvalued." On Tuesday the company <a href="https://investors.honest.com/news-releases/news-release-details/honest-company-announces-pricing-initial-public-offering">priced its initial public offering </a>of 25,807,000 shares of common stock at $16 per share, slightly higher than the midpoint. But Trainer says the stock shouldn't be worth more than $7 a share. "A valuation at $15/share implies the company's profits will be three times greater than Revlon (REV), and we think the chances of that happening are very low because the incumbent consumer companies that compete with The Honest Company already own all the shelf space and dominate the industry," Trainer said.The company, co-founded by actress Jessica Alba, offers "clean and sustainable" personal care products for babies and adults. Trainer said that's a "nice gimmick," but it's not a large enough business to justify a valuation of $1.4 billion and compete with well-established competitors like Kimberly-Clark, Procter &amp; Gamble, Johnson &amp; Johnson, and Unilever, and Revlon. He added that the company held just 1.4% of market share in 2019, and its lack of shelf space is a competitive disadvantage. The Honest Company even acknowledged this as a risk in its IPO filings. "The Honest Company is largely missing from many retailers' shelves," Trainer said. "In 2020, ~70% of The Honest Company's retail sales resulted from relationships with Target (TGT) and Costco (COST). Such heavy customer concentration increases the risks of investing in the company, as its distribution network is less diversified than its competition." The Honest Company has never been profitable, but generated $300.5 million in revenue last year, with diapers and wipes driving 63% of sales. Skin products, household items, personal care, and wellness products made up the rest of its sales. While the company's 2020 revenue grew about 28% from the previous year, it reported a net loss of $14.5 million,<a href="https://www.businessinsider.com/jessica-albas-honest-company-filing-for-ipo-under-ticker-hnst-2021-4"> reported Insider's Dan Whateley.</a>According to Trainer, The Honest Company's path to profitability would be difficult. Using New Constructs' cash flow projection models, he found that the company's shares are priced for revenue growth that outpaces the projected growth of its target <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword>. The Honest Company is set to begin trading on the Nasdaq under the ticket "HNST" Wednesday afternoon. <div type="image" title="Honest IPO DCF model" height="348" width="697" msid="82411421" hostid="261"></div>

Why The Honest Company is overvalued ahead of its IPO, according to a veteran stock analyst

<ul class="summary-list"><li>Arm was the biggest IPO in the US since late 2021 when it made its market debut last week.</li><li>But Ark Invest's Cathie Wood sat out the chip designer's float. </li></ul>Cathie Wood sat on the sidelines while chip designer Arm made its blockbuster stock market debut last week. The Ark Invest CEO chose not to participate in Arm's $55 billion float because she thought it was overvalued compared to its competitors. "As far as Arm, I think there might be a little bit too much emphasis on AI when it comes to Arm and maybe not enough focus on the competitive dynamics out there," she told CNBC's <a href="https://www.cnbc.com/2023/09/20/ark-ceo-cathie-wood-says-she-swerved-the-arm-ipo-frenzy-heres-why.html" target="_blank" rel="noopener">Squawk Box Europe</a> on Wednesday. "So we did not participate in that IPO, and we also compare it to the stocks in our portfolios. Arm came out, we think, from a valuation point of view on the high side, and we see within our portfolios much lower-priced names with much more exposure to AI."Arm's IPO was the biggest stock market debut <a href="https://markets.businessinsider.com/news/stocks/arm-shares-start-trading-biggest-ipo-almost-two-years?_gl=1*1dv2nmz*_ga*MzE2MjY1NjEwLjE2ODgxMTM0MjM.*_ga_E21CV80ZCZ*MTY5NTI5NzQ4My4zNDAuMS4xNjk1MzAwNzQ2LjYwLjAuMA..">since 2021</a> after a <a href="https://markets.businessinsider.com/news/stocks/instacart-arm-ipo-stock-market-news-shares-public-trading-valuation-2023-9">prolonged slump</a> in listings over the past 18 months.Shares in the chipmaker soared 25% on its first day of trading leaving it worth about $65 billion, but has since lost ground each day since then and closed Thursday valued at $53.5 billion.Arm's technology is used in more than 90% of smartphones. The company said in its <a href="https://www.sec.gov/Archives/edgar/data/1973239/000119312523216983/d393891df1.htm" target="_blank" rel="noopener">prospectus</a> that about 70% of the world's population used Arm-based products.Wood's announcement comes after Ark Invest <a href="https://markets.businessinsider.com/news/etf/cathie-wood-s-ark-offloads-tesla-shares-worth-8-4m-while-staying-bullish-on-elon-musk-s-ev-company-1032645046">offloaded Tesla shares</a> worth $8.4 million this week.

Cathie Wood says Ark Invest avoided Arm's blockbuster IPO because valuation was on 'high side'

<ul><li>Star Health and Allied Insurance IPO has not been fully subscribed till the last day of the IPO and hence the issue has been extended till 7 p.m.</li><li>The IPO has been subscribed 79% as of 4 p.m., on December 2</li><li>The health insurer is looking to raise ₹7,249 crore through the public issue of shares.</li><li>The grey market premium of the company’s shares stood at ₹15 over the upper price band of ₹900.</li></ul>Rakesh Jhunjhunwala-backed Star Health and Allied Insurance initial public offering (IPO) has received a not-so-good response from investors in the three days of IPO bidding process. The issue has only been subscribed 79% as of 4 p.m., on December 2. Following this, the issue has been extended till 7 p.m., on December 2, for retail and eligible employees. For non-institutional investors the deadline has been extended till 6 p.m. Note that the IPO bidding time is usually from 10 a.m. to 5 p.m. The poor demand for the health insurer’s IPO is because analysts feel that the IPO is overvalued. Non-institutional investors and employees of the company have given a huge miss to the IPO as seen in the subscription figures. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscription status </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Qualified institutional investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.03 times </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Non-institutional investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.18 times </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.08 times </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Employees </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.08 times </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Overall </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.79 times </td></tr></tbody></table> Most mutual funds also avoided the IPO in the anchor allotment round as <a href="https://economictimes.indiatimes.com/mf/mf-news/mfs-give-star-health-ipo-a-miss-on-pricey-valuations/articleshow/88019603.cms">reportedly </a>the valuations seemed too expensive. The IPO received bids for 3.5 crore equity shares as against 4.4 crore shares available for subscription. In line with the weak subscription status, shares of the company are demanding a premium of just ₹15 in the grey market. The IPO consists of a fresh issue of shares worth ₹2,000 crore and an offer for sale of 5.83 crore shares by existing promoters and shareholders. <div type="image" title="star profit" height="900" width="1200" msid="88053209" hostid="261"></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/new-electric-scooter-bounce-infinity-launched-in-india/slidelist/88050215.cms">Bounce Infinity electric scooter launched — Here are the details on price, range, subsidies and more</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/sbis-former-chairperson-rajnish-kumar-joins-oyos-board-ahead-of-ipo/articleshow/88052541.cms">SBI’s former chairperson Rajnish Kumar joins OYO’s board ahead of IPO</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/enterprise/news/whatsapps-grievance-officer-quits-within-six-months-and-facebook-is-looking-for-a-replacement/articleshow/88049265.cms">EXCLUSIVE: WhatsApp’s Grievance Officer in India quits within six months</a>

Star Health Insurance IPO subscribed only 79% on last day; issue extended till 7 p.m.

<ul><li>Star Health and Allied Insurance IPO has been subscribed only 0.20 times in the first two days of IPO bidding process.</li><li>The health insurer’s IPO is looking to raise ₹7,249 crore through the public issue of shares.</li><li>The grey market premium of the company’s shares rose to ₹15 from ₹10 earlier over the upper price band of ₹900.</li></ul>Ongoing initial public offering (IPO) of Rakesh Jhunjhunwala-backed Star Health and Allied Insurance has received poor response from investors in the first two days of the bidding process. The health insurer’s IPO has been struggling to get bids for ₹7,249 crore IPO. Analysts believe shares of the company are priced at expensive valuations and hence recommend avoiding the IPO. Manoj Dalmia, founder and director at Proficient equities, said that the IPO price is overvalued. He recommended waiting for the last day of the IPO and to invest only if the subscription crosses 100 times. In line with the weak subscription status, shares of the company are demanding a premium of just ₹15 in the grey market. Although the premium rose to ₹15 from ₹10 earlier over the upper price band of ₹900. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Investor category </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscription status </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Qualified institutional investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.07 times </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Non-institutional investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.02 times </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.89 times </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Overall </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.20 times </td></tr></tbody></table> The IPO consists of a fresh issue of shares worth ₹2,000 crore and an offer for sale of 5.83 crore shares by existing promoters and shareholders. Rajnath Yadav from Choice Broking thinks the IPO could have been cheaper. “At a higher price band of ₹900, Star Health is demanding a market cap-to-net premium earned multiple of 10.3 times, which is at premium to the peer average. Moreover, the demanded valuations are at elevated premium to recent capital issuance,” said the analyst. The private health insurer has a market share of 15.8% in the Indian health insurance market as of financial year 2021. As of September 30, 2021, it has a distribution network of 779 health insurance branches spread across 25 states and 5 union territories in India. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/personal-finance/news/here-is-how-you-can-link-your-pan-before-applying-for-the-lic-ipo/articleshow/88032810.cms">Do you own an LIC policy? Here is how you can link your PAN before applying for the LIC IPO</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/ahmedabad-and-karachi-among-ten-cheapest-cities-in-the-world/slidelist/88031800.cms">Ahmedabad and Karachi among ten cheapest cities in the world</a>

Star Health Insurance IPO receives poor response from investors, subscribed only 20% in first two days

<ul class="summary-list"><li>The <keyword id="11898795" type="UNKNOWN" weightage="60" keywordseo="sec" source="Orion">SEC</keyword> put forward <keyword id="11908250" type="UNKNOWN" weightage="60" keywordseo="spac" source="Orion">SPAC</keyword> rules aimed at giving investors protections similar to those around traditional <keyword id="11961450" type="UNKNOWN" weightage="60" keywordseo="ipos" source="Orion">IPOs</keyword>. </li><li>They call for disclosure of conflicts of interest and an end to overly optimistic language about future results.</li></ul>The US securities regulator has put forward a clutch of new rules for SPACs, including a measure that would limit backers' ability to make too-rosy projections about revenue growth. But critics — including one of its own commissioners — have said the changes amount to a crackdown canceling out SPAC advantages over traditional IPOs, threatening to bring them to a halt.The <keyword id="11898794" type="UNKNOWN" weightage="60" keywordseo="securities-and-exchange-commission" source="Orion">Securities and Exchange Commission</keyword> released the <a href="https://www.sec.gov/news/press-release/2022-56">proposed new rules</a> Wednesday, calling for SPAC shareholders to be given more details around conflicts of interest between sponsors and investors, and around share dilution.Those disclosures from SPACs are similar to those required for IPO applications, a move that would tighten investor protection.On changes to marketing rules, the SEC proposed parties involved shouldn't over-promise or use "overly optimistic" language to attract investors."The SPAC target IPO is being used as an alternative means to conduct an IPO. Thus, investors deserve the protections they receive from traditional IPOs," SEC Chair <keyword id="11896276" type="UNKNOWN" weightage="60" keywordseo="gary-gensler" source="Orion">Gary Gensler</keyword> said in a statement.SPACs — special purpose acquisition companies — provide an alternative route for private companies looking to go public. They typically secure a stock-market listing, then <a href="https://www.businessinsider.com/how-do-spacs-work-get-created-costs-guide?r=US&amp;IR=T#:~:text=A%20SPAC%20stands%20for%20%22special,take%20a%20private%20company%20public.">acquire the private company</a>, in a strategy seen as a quicker alternative to the traditional IPO.These shell companies quickly became one of the hottest trends on Wall Street. The number of blank-check companies filing to go public via a SPAC rose from 248 in 2020 to 613 in 2021. But activity has cooled so far this year, according to data from<a href="https://spacinsider.com/stats/"> SPACInsider</a>.For a while now, the SEC has been concerned about investors not receiving the same protections around SPACs as they do around IPOs, or initial public offerings.Wednesday's proposal aims to close that gap, as the new rules seek to closely align the financial requirements for private companies merging with SPACs with those for an IPO. The rules would also strengthen disclosures regarding SPAC projections and their takeover target, also called the "de-SPAC." It calls for the sponsor's view on the fairness of the deal, and whether it has been scrutinized by a third party. These disclosures would have to be issued at least 20 days prior to a shareholder vote on the proposed transaction."Companies raising money from the public should provide full and fair disclosure at the time investors are making their crucial decisions to invest," Gensler said.SEC Commissioner Hester Pierce<a href="https://www.sec.gov/news/statement/peirce-statement-spac-proposal-033022"> pushed back against the changes</a>, saying the rules are "designed to stop SPACs in their tracks." She suggested the agency wants to turn SPACs exactly into traditional IPOs, therefore limiting companies looking to go public."Today's proposal assumes that the traditional IPO process works just fine as is, that it provides the optimal level of investor protection, and that it generates the right number and the right type of public companies," she said.The SEC is open to public comment for 60 days before working to finalize the proposed rules.Read more: <a href="https://www.businessinsider.com/real-estate-investing-will-the-housing-bubble-burst-overvalued-cities-2022-3" target="_blank" rel="noopener noreferrer">Are we on the verge of a housing-bubble bust? An economist advises buyers to sit out the current 'irrational' market and lists the 11 most overvalued cities in the US</a>.

The SEC is taking aim at SPACs with proposed rules to make disclosures more like those in a traditional IPO

<ul><li><keyword id="6776373" type="UNKNOWN" weightage="20" keywordseo="Shyam-Metalics-IPO">Shyam Metalics IPO</keyword> is now live and it will be open for subscription till June 16.</li><li>The total IPO size is ₹909 crore. The price band is fixed at ₹303-306, and each lot consists of 45 equity shares.</li><li>Analysts are mostly bullish on the <keyword id="7112477" type="COMPANY" weightage="20" keywordseo="Shyam-Metalics">Shyam Metalics</keyword> IPO, but some suggest caution.</li></ul>Shyam Metalics, a Kolkata-based producer of long steel products, has commenced its ₹909 crore initial public offering (IPO), with the price band fixed at ₹303-306 per share. The Shyam Metalics IPO will be open for subscription till June 16. Each lot consists of 45 shares, so each lot will be worth ₹13,770. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Share of issue reserved </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Qualified Institutional Buyers </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">50% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Non-institutional Investors </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Retail Investors </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">35% </td></tr></tbody></table> Out of the IPO size of ₹909 crore, Shyam Metalics’ existing shareholders are offering ₹252 crore worth shares. <div type="Article" hostid="261" msid="83505013" title="Sona Comstar IPO worth ₹5,550 crore opens today – find out if this EV battery player has enough juice for a long ride" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="Objects of the issue" comment="subhead" text="Objects of the issue">Objects of the issue</cmsannotation> The company’s prospectus states that out of the ₹657 crore fresh issue, ₹470 crore will be used toward payment of certain borrowings, which will help reduce its cost of finance. The remaining ₹187 crore are earmarked for general corporate purposes, which includes capital expenditure, working capital requirements, investment in subsidiaries and joint ventures, among other things. <cmsannotation type="cmsannotation" annotationid="Here’s what analysts are saying" comment="subhead" text="Here’s what analysts are saying">Here’s what analysts are saying</cmsannotation> Analysts are mostly bullish and recommend subscribing to the Shyam Metalics IPO, but some suggest that it is overvalued when compared to its peers. According to Choice Broking, the trailing 12-month EV/EBITDA of 8.6 times is higher than the average of 6.4 times of its peers. EV/EBITDA is a ratio used to determine the value of a company. EV refers to enterprise value. EBITDA refers to earnings before interest, tax, depreciation and amortisation. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Brokerage/Analyst </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Reliance Securities </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Geojit Financial Services </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Choice Broking </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Subscribe with caution </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Hem Securities </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Ventura Securities </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Arun Kejriwal </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Dilip Davda </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Subscribe for long term </td></tr></tbody></table> “Further, a strong balance sheet along with best-in-class leveraging positioning offers an edge to Shyam Metalics. Additionally, operating cash flow yield at 8.4% looks to be impressive and expected to improve further with higher cash flow generation in the ensuing quarters. Hence, we recommend subscribing to this issue,” said Reliance Securities in its report. Hem Securities also recommended subscribe. “We like the financial performance posted by the company with a healthy balance sheet status. Efficiency improvements, improved productivity and cost rationalisation has enabled it to deliver consistent and strong financial and operational performance,” it noted in its IPO note. <cmsannotation type="cmsannotation" annotationid="Understanding the business of Shyam Metalics" comment="subhead" text="Understanding the business of Shyam Metalics">Understanding the business of Shyam Metalics</cmsannotation> Shyam Metalics is a leading producer of integrated steel and ferro alloys, based in east India. The steel maker has three manufacturing plants with an operating capacity of 5.7 million tonnes per annum. Analysts say that it has control over all the aspects of its operations because of forward and backward integration, allowing it to optimise its processes according to its needs. Shyam Metalics counts Jindal Stainless (Hisar), Rimjhim Ispat, POSCO International, Norecom, JM Global Resources, Goenka Steels and others among its clientele. “Shyam Metalics has consistently outperformed its peers in terms of profitability. Majority of the power costs is being met through captive sources, which results in low power costs and thereby improving operating performance vis-à-vis its peers,” said a report by Hem Securities, underlining the company’s financial performance. Here’s a look at its revenue and profit since March 2018: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Period </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue (₹ in crore) </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Profit (₹ in crore) </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dec-20 </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,996 </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">456 </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mar-20 </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4,395 </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">340 </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mar-19 </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4,685 </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">637 </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mar-18 </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,920 </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">528 </td></tr></tbody></table>Source: Shyam Metalics prospectus SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/sona-comstar-ipo-price-gmp-should-you-subscribe/articleshow/83505013.cms">Sona Comstar IPO worth ₹5,550 crore opens today – find out if this EV battery player has enough juice for the long ride</a> <a href="https://www.businessinsider.in/stock-market/news/adani-group-under-sebi-scanner-on-market-manipulation/articleshow/83501698.cms">Gautam Adani loses over $7 billion in net worth after questions over the meteoric rise in group stocks</a> <a href="https://www.businessinsider.in/stock-market/news/list-of-upcoming-ipo-in-2021-in-india/slidelist/82766975.cms">IPO watch: List of upcoming public issues in 2021 – from Zomato to GoAir, over a dozen companies have filed for a listing</a>

Shyam Metalics IPO worth ₹909 crore is live – find out if you should subscribe to this Kolkata-based producer of long steel products

<ul class="summary-list"><li>Robinhood's upcoming IPO is overvalued and packed with regulatory risk, according to veteran stock analyst <keyword id="3498946" type="PERSON" weightage="60" keywordseo="david-trainer">David Trainer</keyword>.</li><li id="recirc"><a href="https://www.businessinsider.com/?hprecirc-bullet"></a>Trainer's investment research firm said Robinhood's main source of revenue-payment for order flow-could be banned by regulators. </li><li>A ban would severely harm Robinhood's business model, Trainer said.</li></ul>Robinhood's upcoming initial public offering presents "alarming" risks to investors as regulators could stifle the brokerage app's main source of revenue, according David Trainer, CEO of investment research firm New Constructs. 81% of Robinhood's revenue in the first quarter of 2021 came from a controversial practice known as <keyword id="10728314" type="UNKNOWN" weightage="60" keywordseo="payment-for-order-flow">payment for order flow</keyword>. The brokerage app argues that payment for order flow allows it to offer free trading to their customers. In June, SEC chief Gary Gensler questioned whether payment for order flow provides investors with best execution."Payment for order flow raises a number of important questions. Do broker-dealers have inherent conflicts of interest? If so, are customers getting best execution in the context of that conflict? Are broker-dealers incentivized to encourage customers to trade more frequently than is in those customers' best interest?" the SEC chair said in<a href="https://www.sec.gov/news/speech/gensler-global-exchange-fintech-2021-06-09"> prepared remarks</a>. If the SEC ever outlaws payment for order flow, Robinhood may not be able to offer commission-free trading, which would put the app at a disadvantage against competitors Fidelity and Charles Schwab. Unlike Robinhood, those firms generate more revenue from other services, he added.In June, SEC chair Gary Gensler said the US regulator is reviewing payment for order flow, but the practice is still legal. Trainer noted that Robinhood hired former SEC Commissioner Dan Gallagher as chief legal officer in 2020 and paid him $30 million after seven months. "$30 million to one person is a lot for a firm without any regulatory concerns," Trainer said. "The mounting regulatory risk Robinhood faces makes us concerned that the public may see Robinhood's stated goal to 'democratize investing' as a ruse to lure them into speculative trading and gambling that benefits Robinhood more than the individual investor."Trainer also said that Robinhood's valuation is worth no more than $9 billion, significantly less than the firm's expected $35 billion price tag. According to Trainer, Robinhood's $35 billion valuation implies the firm will be able to maintain its pandemic-era profitability, grow revenue by almost 3,000%, and compete with established rivals like Schwab. But the app lacks scale and with the meme stock frenzy fading for now, its best years may already be behind it, he said.

Robinhood's IPO presents 'alarming' risks for investors as regulators weigh a crackdown on the company's main source of revenue, says a veteran stock analyst

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