Avoid for Listing gain seekers and Short term.
Invest for Mid term to long term
Reasons:
🔸 It is 100% OFS. Means offer for sale. Not a single money goes to company. All money from our pocket is going to promoter’s pocket. And that too in Korea.
🔸 Exorbitant rise in dividend payout to the parent by taking money out of cash reserves, just before IPO. Look like captain is jumping out of ship before others🙄
🔸 Sharp increase in royalty payment percentage to the parent, also just before IPO.
🔸 Launching IPO with full of face component at Big Bull market valuations, while automotive market is struggling.
🔸 Over valued IPO.
🔸 Hyundai sale is decreasing by 5% in July.
🔸 Pear companies are undervalued and with lower P/E ratio like Tata Motors.
🔸 This is historically big IPO, so supplies huge. So slow chance of listing gain.
🔸 It may fall sharp after listing.
🔸 Grey market premium is falling dramatically. Still going down.