Samir Arora Discusses Foreign Investors’ Role In Hyundai India IPO

Samir Arora, Founder of Helios Capital, discussed his perspective on the Hyundai India IPO and the broader IPO market. Arora pointed out the interesting discrepancy between the valuations of global companies and their Indian subsidiaries. He mentioned that multinational corporations (MNCs) like Hyundai, Nestle, and Lever often have much lower valuations globally compared to their Indian counterparts, which trade at significantly higher multiples. Arora highlighted the challenge faced by Indian investors, who are generally unable to invest in these global stocks directly and therefore tend to buy the Indian subsidiaries at inflated valuations. He observed that while foreign institutional investors (FIIs) participated in the Hyundai IPO, they could have bought the parent company at a lower price abroad. Despite this, FIIs seem to value the Indian market’s unique dynamics, even if the valuations are high.