Hyundai offer has some appeal, but may not give investors first-mover advantage

 

Hyundai Motor India (HMI), the second-largest passenger vehicle manufacturer in the country after Maruti Suzuki, plans to raise up to Rs 27,870 crore through an offer for sale (OFS).

Following the OFS, its promoter, Hyundai Motor Company (HMC) of South Korea, will reduce its stake from 100% to 82.5%. HMC is required to further decrease its stake to 75% or lower to comply with regulatory standards. This could potentially impact HMI’s stock price.