Hyundai Motor India Limited has officially launched its highly anticipated Initial Public Offering (IPO) today, October 15, 2024. The IPO is set to remain open for subscription until October 17, 2024, and aims to raise approximately ₹27,870.16 crore through a price band of ₹1,865 to ₹1,960 per equity share. This IPO is entirely an offer for sale (OFS), meaning that the proceeds will not contribute to the company’s balance sheet.
Key Details of the Hyundai Motor India IPO
Hyundai Motor India’s IPO has generated significant interest in the market. Currently, shares are trading at a grey market premium (GMP) of ₹65, indicating positive investor sentiment. The minimum investment required for retail investors is ₹13,720 for one lot, which consists of seven shares.
Important Dates
→ IPO Opening Date: October 15, 2024
→ IPO Closing Date: October 17, 2024
→ Allotment Date: October 18, 2024
→ Listing Date: October 22, 2024
Hyundai Motor India GMP (Grey Market Premium)
As of today, Hyundai Motor India’s shares are available at a grey market premium of ₹65. This premium suggests strong demand and positive sentiment among investors ahead of the official listing. The GMP is an important indicator for potential investors as it reflects market expectations regarding the stock’s performance post-IPO.
Hyundai Motor India Subscription Status
The IPO has attracted attention from various investor categories, including Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs). As of the first day of bidding, early indications suggest strong interest from retail investors. Specific subscription numbers will be updated as the bidding progresses throughout the week.
Hyundai Motor India Business Overview
Hyundai Motor India is a subsidiary of Hyundai Motor Company and is one of the leading automobile manufacturers in India. The company has established a strong presence in the passenger vehicle segment and is known for its diverse product lineup that includes hatchbacks, sedans, and SUVs. With a focus on innovation and sustainability, Hyundai aims to expand its electric vehicle (EV) offerings in the Indian market.The company has showcased remarkable operational efficiency by sourcing about 90% of its parts locally. This local sourcing strategy not only reduces costs but also enhances supply chain resilience. Hyundai’s commitment to sustainability is evident in its plans to increase its EV market share while continuing to innovate within its existing product portfolio.
Hyundai Motor India Financial Performance
Hyundai Motor India has reported impressive financial metrics over recent years. The company has maintained a revenue compound annual growth rate (CAGR) of 19.4% from FY21 to FY24. Additionally, it boasts a return on capital employed (RoCE) exceeding 50% in FY24. Such strong financials make it an attractive option for long-term investors.
Hyundai Motor India Analyst Reviews
Several analysts have weighed in on whether investors should apply for this IPO. Gaurav Garg from Lemonn Markets has given a ‘subscribe’ tag to the public issue, highlighting Hyundai’s operational efficiency and impressive financial performance.Shivani Nyati from Swastika Investment recommends applying for the IPO for long-term gains but cautions that the issue is fully priced and may limit potential upside. Other analysts from firms like Aditya Birla and ICICI Direct have also assigned a ‘subscribe’ tag to this much-anticipated public offering.Master Capital has expressed optimism about Hyundai’s plans to expand its passenger vehicle portfolio while increasing its EV market share. The firm believes that Hyundai’s deep understanding of consumer preferences will help maintain its competitive edge.
Conclusion
Hyundai Motor India’s IPO presents a unique opportunity for investors looking to engage with one of India’s leading automobile manufacturers. While the initial listing gains may be modest due to the size and pricing of the offer, analysts suggest that it could be a worthwhile long-term investment given the company’s strong fundamentals and market position.Investors should consider their risk appetite and investment horizon before participating in this IPO. With robust financials and an expanding product lineup, Hyundai Motor India stands poised for growth in an increasingly competitive automotive landscape.
Disclaimer
The views and recommendations provided in this article are those of individual analysts and do not represent the views of Mint. We advise investors to consult with certified experts before making any investment decisions as market conditions can change rapidly and individual circumstances may vary.
