Hyundai Motor India Limited is making headlines with its Initial Public Offering (IPO), which is one of the largest in Indian history. The IPO opened for subscription on October 15, 2024, and will close on October 17, 2024. The company aims to raise approximately ₹27,870 crores through this offering, which consists entirely of an offer for sale of 14.22 crore shares.
Main Points
- 1 Key Details of Hyundai IPO
- 2 How to Apply for Hyundai IPO
- 3 Hyundai IPO Subscription Status
- 4 Hyundai IPO Grey Market Premium (GMP)
- 5 Hyundai IPO Financial Overview
- 6 Promoter Holding and Management Team
- 7 Risks and Concerns
- 8 Competitor Comparison
- 9 Industry Outlook
- 10 Expected Listing Gains
- 11 Regulatory Approvals and Underwriters
Key Details of Hyundai IPO
- Issue Size: ₹27,870 crores
- Price Band: ₹1,865 to ₹1,960 per share
- Lot Size: 7 shares (minimum investment of ₹13,720)
- Bidding Dates: October 15 – October 17, 2024
- Allotment Date: October 18, 2024
- Listing Date: October 22, 2024
How to Apply for Hyundai IPO
Investors can apply for the Hyundai IPO through various platforms. Here’s a simple guide:
- Login to Your Trading Account: Use your credentials to access your trading platform.
- Navigate to the IPO Section: Find the Hyundai IPO in the list of open offerings.
- Enter Lot Size: Specify how many lots you wish to purchase.
- Submit Your UPI ID: Link your payment method and submit your application.
- Approve Funds: Confirm the payment through your UPI app.
Hyundai IPO Subscription Status
As of now, the Hyundai IPO has been oversubscribed by 2.37 times, primarily driven by strong interest from Qualified Institutional Buyers (QIBs), who subscribed 6.97 times their allotted shares. However, retail investors and non-institutional investors showed a lukewarm response, with their categories undersubscribed.
Hyundai IPO Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Hyundai shares has fluctuated significantly. Currently, it stands at around ₹75, translating to a premium of approximately 3.83% over the upper issue price of ₹1,960. This represents a recovery from a previous dip where it was at a discount.
Hyundai IPO Financial Overview
Hyundai Motor India has established itself as a major player in the Indian automotive market with a market share of about 15% as of FY 2024. The company is recognized for its reliable vehicles across various segments including sedans, SUVs, and electric vehicles (EVs).
Promoter Holding and Management Team
The IPO will not change the promoter holding structure significantly as it is an offer for sale. The management team comprises seasoned professionals with extensive experience in the automotive industry.
Risks and Concerns
Potential investors should be aware of several risks associated with this IPO:
- High inventory levels in the automotive sector.
- Slowing demand trends observed over recent months.
- Concerns regarding high valuations compared to peers in the industry.
Competitor Comparison
Hyundai competes with other major players in the Indian market such as Maruti Suzuki and Tata Motors. While Hyundai holds a strong position as the second-largest car manufacturer in India, it faces challenges from competitors who are also expanding their EV offerings.
Industry Outlook
The Indian automotive market is projected to grow significantly due to rising demand for EVs and a growing middle class. However, current economic conditions and supply chain issues may impact short-term growth.
Expected Listing Gains
Analysts predict that shares may list around ₹2,035 based on current GMP trends. However, given the mixed subscription response and market conditions, there are concerns about potential flat or negative listing gains.
Regulatory Approvals and Underwriters
Hyundai’s IPO has received all necessary regulatory approvals and is being managed by leading underwriters in the industry.
