Important Thoughts on Hyundai IPO
Hello investors, today we will discuss the Hyundai IPO, which is a topic of discussion in the market. The value of this IPO is around ₹ 27,000 crore. When such a huge amount is mentioned, many investors have questions. Some important things should be kept in mind while making decisions related to such big IPOs.
Learn from the history of IPO
If we look at history, many big IPOs came and people had high expectations from them. But the results were not as expected. For example, look at the big IPOs of Paytm and LIC. These IPOs were very hyped, but their listing day results did not meet the expectations of investors.
Challenges related to Hyundai IPO
Every country has a limited amount of capital. When a big IPO comes, investors withdraw money from their existing investments (such as mutual funds, stocks, gold, and real estate) and invest in the IPO. This means that the money coming for this IPO is coming from somewhere else, which affects the liquidity of the market.
Listing Day Risks
Most of the time, the listing day of big IPOs is quite volatile. If you are investing in an IPO only for listing gains, then it is important that you understand the fundamental value of that company well. If the fundamentals of the company are strong, then even if there is a loss on the day of listing, there can be profit in the long term.
Liquidity shock in the market
Big IPOs often create a liquidity shock in the market, as investors withdraw money from their other investments and invest in the IPO. The effect of this is that money stops getting invested in other sectors or stocks, which stops the growth of those stocks.
Think before investing during the Hyundai IPO
If you are thinking of investing in the Hyundai IPO, keep in mind that you should not invest only for listing gains. You should invest considering the company’s long-term strategy and fundamentals. If the company is strong, you can absorb the loss on listing day and make a profit after a few months.
Conclusion
Investing in an IPO can be a good option, but it is also important to understand the risk associated with it. Before investing in any IPO, pay attention to the company’s fundamental position and the current market situation.
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Stay connected for more information on Hyundai IPO and invest wisely.
Note: The purpose of this article is to provide information. Consult your financial advisor before investing.