Hyundai Motor India has recently launched its Initial Public Offering (IPO), making headlines as the largest IPO in Indian history. The subscription period for the IPO opened on October 15, 2024, and closed on October 17, 2024. The company aims to raise approximately ₹27,870 crore through this offering, which consists entirely of an Offer for Sale (OFS) of shares by its parent company, Hyundai Motor Company.
Main Points
Key Dates
- IPO Opening Date: October 15, 2024
- IPO Closing Date: October 17, 2024
- Allotment Date: October 18, 2024
- Refund Initiation: October 21, 2024
- Listing Date: October 22, 2024
Financial Overview
The price band for the shares is set between ₹1,865 and ₹1,960 per share. Each lot consists of 7 shares, requiring a minimum investment of ₹13,720. The maximum investment for retail investors can go up to ₹1,92,080 for 14 lots (98 shares).
Subscription Status
As of now, the IPO has been subscribed approximately 2.37 times overall. The Qualified Institutional Buyers (QIB) segment saw robust interest, being subscribed about 6.97 times. However, the Non-Institutional Investors (NII) and Retail Individual Investors (RII) categories saw lower subscriptions at around 0.38 times and 0.44 times respectively.
Grey Market Premium (GMP)
The Grey Market Premium has fluctuated significantly. Initially reported at ₹75 during the bidding period, it has recently dropped to a discount of ₹32-35 per share due to muted demand during the subscription phase. This indicates potential listing losses for investors.
How to Apply
Investors can apply for the Hyundai Motor India IPO through various platforms:
- Login to your trading account (like Angel One or Zerodha).
- Navigate to the IPO section.
- Select Hyundai Motor India IPO from the list.
- Enter your desired lot size and submit your UPI ID.
- Approve the mandate on your UPI app.
Promoter Holding and Objectives
Hyundai Motor Company will continue to hold a significant stake post-IPO as this offering is entirely an OFS. The funds raised are intended for various corporate purposes including debt reduction and expansion plans in the growing Indian market.
Valuation and Financials
Hyundai Motor India holds a strong position in the Indian automotive sector with a market share of approximately 15%. The company has consistently reported positive financials over the years but faces challenges such as high operational costs and dependence on select clients.
Risks and Concerns
Investors should be aware of several risks:
- High competition in the automotive sector.
- Dependence on a limited range of customers.
- Economic fluctuations affecting consumer spending.
- Regulatory challenges in the automotive industry.
Management Team Background
Hyundai Motor India’s management team boasts extensive experience in the automotive industry. Their strategic vision focuses on innovation and expanding their footprint in electric vehicles (EVs), aligning with global trends towards sustainability.
Market Positioning
Hyundai is well-positioned as India’s second-largest car manufacturer and a leading exporter since 2005. The company leverages its global R&D capabilities to introduce advanced features in its vehicles tailored for Indian consumers.
Expected Listing Gains
While initial estimates suggested potential listing gains based on GMP figures, current trends indicate that investors may face challenges upon listing due to subdued demand during the IPO phase
