Hyundai Motor India Shares Fall; Co Wants Shareholders to Approve Related Party Transactions

Shares of Hyundai Motor India Ltd. took a hit on March 10 after the company informed the exchanges that it’s seeking approval for seven material related party transactions.

Valued at ₹31,526 crore, these transactions await an e-voting, scheduled between March 12-13.

Stakeholders Empowerment Services (SES) voted against six out of the seven transactions. The advisory firm said that proper scrutiny is not being done to enable shareholders to take informed decisions. Additionally, the company has not furnished proper adequate disclosures relating to those seven transactions.

However, Investor Advisory Services (IiAS) has voted in favour of all seven transactions. The proposed transactions were undertaken at arms length pricing.

A Hyundai Motor India spokesperson told CNBC-TV18, “We are aware of the SES recommendations, and we are of the view that this is an isolated opinion. Another reputed proxy advisory firm IiAS has shared a contrary opinion to recommendations of SES, favouring all the seven resolutions and giving a clear go-ahead. Our commitment to the highest standards of corporate governance remains uncompromising, and we shall continue to uphold the interest of all stakeholders.”

Close to 16 analysts tracking Hyundai Motor India have given a ‘buy’ rating.

Hyundai Motor India fell by 1.55% at ₹1,688.8 on March 10. It further slid from its IPO price of ₹1,960.