Hyundai Motor India IPO Overview: The highly anticipated Initial Public Offering (IPO) of Hyundai Motor India Limited is poised to make its debut in the Indian primary market next week. Set to open its doors for subscriptions on 15th October 2024, and remaining open until 17th October 2024, this IPO marks one of the most significant public offerings in India. As the second-largest Original Equipment Manufacturer (OEM) in the country, Hyundai is aiming for a robust capital raise through the public issue.
Key Details of Hyundai Motor India IPO
IPO Price Band: The price band has been set between ₹1865 to ₹1960 per equity share. This pricing strategy reflects Hyundai’s positioning in the market as it seeks to attract both retail and institutional investors.
Target Capital Raise: The company aims to raise a staggering ₹27,870.16 crore through this public offer, which will be executed as a complete Offer for Sale (OFS), allowing current stakeholders to divest their shares.
Lot Size: Investors can apply for the IPO in lots, with each lot consisting of 7 shares. This structure enables retail investors to participate effectively.
Allotment and Listing Dates: The expected date for the share allocation is 18th October 2024, followed by a trading debut projected for 22nd October 2024, in accordance with the T+3 listing rule.
Registrar and Lead Managers: KFin Technologies will serve as the official registrar for the issue, whereas the lead managerial responsibilities have been allocated to several prominent financial institutions including Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities & Capital Markets Pvt Ltd, J.P. Morgan India Private Limited, and Morgan Stanley India Company Pvt Ltd.
Market Sentiment and Expert Recommendations
Grey Market Premium: As of today, Hyundai Motor India’s shares are reportedly commanding a premium of ₹74 in the grey market, indicating strong investor interest ahead of the official IPO opening.
Analyst Views: Prashanth Tapse, Senior VP — Research at Mehta Equities, recommends the IPO, highlighting the shifting dynamics within the Indian auto market. He asserts that Hyundai is well-positioned to capture growth, particularly as consumers move towards higher-priced segments, benefiting from its competitive edge compared to rivals like Maruti Suzuki.
Anand Rathi has also given a ‘buy’ tag to the issue, noting that at the upper price band, Hyundai would trade at a price-to-earnings (P/E) ratio of 26.2x for FY24 earnings, suggesting a solid valuation foundation. Consequently, they advise a “Subscribe – Long Term” rating for potential investors.
Other brokerage firms including Arihant Capital Markets, Bajaj Capital, and ICICI Direct have echoed similar sentiments, recommending subscription to the IPO based on Hyundai’s market resilience and growth prospects.
Disclaimer: The opinions and recommendations provided herein are those of the respective analysts or brokerage firms and do not necessarily reflect the views of any news outlet. Investors are encouraged to conduct their own research and consult with certified financial advisors before making investment decisions, as market conditions can fluctuate rapidly.
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