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Why Hyundaiโ€™s IPO may have disappointed and whatโ€™s next?

LivemintLivemint ยท 8m ago
Why Hyundaiโ€™s IPO may have disappointed and whatโ€™s next?
Medial

Hyundai Motor India's IPO failed to deliver immediate gains as the stock ended in the red on the first day. While opinions about the stock are mixed, understanding Hyundai's core business and the Indian passenger vehicle market is crucial for investors. The Indian PV market has been growing at a modest pace, but the potential for future growth exists as India has a low car ownership rate compared to more developed markets like China. Hyundai India's strategy of focusing on premium SUVs has paid off, with SUVs accounting for a significant portion of its sales. However, concerns such as policy decisions, capital expenditure levels, shrinking export role, and competition from Maruti Suzuki and Kia pose challenges for Hyundai's profitability and position in India. Investors are advised to carefully monitor the company's future plans before making investment decisions.

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Why prudent investors remain wary of SoftBank

LivemintLivemint ยท 1y ago
Why prudent investors remain wary of SoftBank
Medial

UK-based semiconductor and software design firm Arm Holdings, owned by SoftBank Group, recently filed for an IPO. However, SoftBank's track record of investments has raised concerns among investors. Several of its high-profile IPOs, including DiDi Global and SenseTime, have experienced negative returns. While the concerns are primarily around pricing, Arm's IPO was successful due to the buzz around AI. SoftBank had previously attempted to sell Arm to chipmaker Nvidia but opted for a public listing. SoftBank has faced significant losses from its investments, including WeWork, resulting in a net loss of $3.3 billion in the June quarter. Despite this, SoftBank plans to invest heavily in AI following Arm's IPO.

Why EV maker Atherโ€™s IPO didnโ€™t tick all right boxes

EntrackrEntrackr ยท 2m ago
Why EV maker Atherโ€™s IPO didnโ€™t tick all right boxes
Medial

Why EV maker Atherโ€™s IPO didnโ€™t tick all right boxes Ather had to scale down its expected valuation from $2 billion to $1.4 billion ahead of the IPO โ€” a move that, to some investors, signaled weaker demand or a lack of confidence. Ather Energyโ€™s Rs 2,626 crore IPO โ€” Indiaโ€™s third-largest public offering of 2025 so far โ€” had all the makings of a headline event: a respected EV brand, strong engineering pedigree, and a fast-growing electric scooter market. Yet, as the subscription window closed, the response appeared muted. Institutional investors subscribed to just 1.7 times the shares allocated for Qualified Institutional Buyers (QIB) category, while Non-Institutional Investors (NIIs) subscribed to only 66% of their quota. Retail investors showed comparatively more interest, with a subscription rate of 1.78 times, thanks possibly to some last minute pushing by brokerages promising the possibility of listing gains. Ather is known for its solid engineering and high-quality scooters. But when it came to the IPO, it struggled to get attention. Many investors felt the company didnโ€™t share a big, bold vision โ€” something Ola did well. Ather had to scale down its expected valuation from $2 billion to $1.4 billion ahead of the IPO โ€” a move that, to some investors, signaled weaker demand or a lack of confidence, especially when compared to the bolder positioning of rivals like Ola Electric. Even when we look at the financials of both EV companies, the contrast is clear. Ahead of its IPO, Ola Electric disclosed in its Red Herring Prospectus (RHP) that it recorded Rs 5,000 crore in revenue for FY24, with a net loss of Rs 1,584 crore โ€” meaning the company spent Rs 1.25 to earn every Rs 1 in revenue. Ather Energy, on the other hand, reported Rs 1,579 crore in revenue with a loss of Rs 580 crore for the first nine months of FY25, translating to a cost of Rs 1.36 to earn every Rs 1. That higher per-unit cost, combined with lower scale, may have made investors cautious, especially when comparing Atherโ€™s path to profitability with Olaโ€™s stronger topline growth. Atherโ€™s slow and steady approach to expansion, which ensured high customer loyalty and trust, has boomeranged when it comes to the IPO. Public markets tend to reward speed, growth, or profitability, and in Atherโ€™s case, it appears lucky to have scraped through with none of the above. That is a huge endorsement of its reputation and promise, and possibly positive word of mouth. That the IPO was practically a compulsion is also a reason why the firm decided to forge ahead, with limited runway available and backers holding off. There is every possibility that investors will have to be more patient than usual to see the firm deliver returns. The founders have almost been timid in making claims linked to prospects, the antithesis of what Bhavish Aggarwal of Ola Electric. One can only hope that this refusal to chest thump will deliver the kind of returns that gladden the heart in time.

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