While Hyundai’s parent company holds an 82% stake, ensuring resolution approval, experts believe the company should have communicated better with shareholders.
“The company needs to outreach to shareholders and proxy advisory firms to address concerns,” Subramanian added.
Earlier, proxy advisory firm Stakeholders Empowerment Services (SES) opposed six out of the seven related party transactions proposed by Hyundai, citing insufficient scrutiny and inadequate disclosures.
The following are the seven related party transactions:
| Parties | ₹ Cr |
| Hyundai Motor India and Mobis India Ltd. | 12,525 |
| Hyundai Motor India and Hyundai Motor Co. | 4,607 |
| Hyundai Motor India and HTLAI Pvt. Ltd. | 2,560 |
| Hyundai Motor India and Kia India Pvt. Ltd. | 5,824 |
| Hyundai Motor India and HEC India LLP | 3,000 |
| Hyundai Motor India and Hyundai Motor de Mexico | 1,850 |
| Hyundai Motor India and PT Hyundai Motor Manufacturing Indonesia | 1,160 |
Investor Advisory Services (IiAS), however, supported all seven, stating that they follow arm’s-length pricing and are part of the company’s ordinary course of business.
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Hyundai India has no major corporate governance issues based on its listing history and regulatory filings. However, as a newly listed company, it is expected to improve shareholder engagement and transparency over time. Investors may overlook this as an initial misstep, but a continued lack of communication could impact trust in the future.
The market capitalisation of Hyundai Motor India is around ₹1,35,990.94 crore. Its shares have declined by nearly 10% in the past month.
Of the 19 analysts with coverage on Hyundai Motor India, 16 have a “buy” rating, one has a “hold” rating, and one has a “sell” rating on the stock.
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