Hyundai Motor India Ltd (HMIL) is set to make its much-anticipated debut on the stock market on October 22, 2024. The shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This initial public offering (IPO) has garnered significant attention, raising approximately ₹27,870 crore, making it one of the largest IPOs in India.
Main Points
Key Details About the Hyundai IPO
The IPO was open for subscription from October 15 to October 17, 2024. It was entirely an offer-for-sale (OFS) of 14,21,94,700 shares by Hyundai Motor Company, the parent firm. Notably, there is no fresh issue of shares involved in this IPO, meaning that Hyundai Motor India will not directly benefit from the funds raised.
Subscription Rates
The overall subscription rate for the IPO was 2.37 times, with varied participation across different investor categories:
- Qualified Institutional Buyers (QIBs): 6.97 times
- Non-Institutional Investors (NIIs): 0.60 times
- Retail Individual Investors (RIIs): 0.50 times
This indicates strong interest from institutional investors, although retail participation was notably lower compared to previous major IPOs.
Financial Performance
Hyundai has shown impressive financial results recently. For the fiscal year 2023-24, the company reported a 28.7% increase in net profit year-on-year, amounting to ₹6,060 crore. Revenue also saw a substantial rise of 15.8%, reaching ₹69,829 crore. In the first quarter of FY25, revenue grew by 4.3% to ₹17,344.2 crore.
Grey Market Premium Insights
As the listing date approaches, the grey market premium (GMP) for Hyundai shares has been fluctuating significantly. After experiencing a dip in recent weeks, the GMP rebounded to around ₹95 above the issue price of ₹1,960. This suggests that investors are optimistic about potential listing gains.
Market analysts predict that Hyundai’s stock could debut with a modest gain of around 5% based on current trends in the grey market. This is a positive turnaround compared to earlier predictions when GMP had dipped into negative territory.
Market Sentiment
The automotive sector is currently witnessing a shift toward innovation and sustainability, which aligns well with Hyundai’s strategic focus. Analysts believe that despite some concerns regarding short-term gains due to subdued retail interest, Hyundai’s robust fundamentals make it an attractive long-term investment option.
How to Check Your Application Status
For those who applied for shares in the Hyundai IPO, checking application status is straightforward:
- Visit the BSE website at bseindia.com.
- Select ‘Equity’ in the issue type option.
- Choose ‘Hyundai Motor India Limited’.
- Enter your application number or PAN details.
- Complete the CAPTCHA and click ‘Search’.
Expert Opinions
Several financial analysts have weighed in on Hyundai’s IPO and its implications for investors:
- Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., noted that while immediate listing gains might be modest due to market sentiment and IPO size, Hyundai’s strong market position as India’s second-largest passenger vehicle manufacturer makes it appealing for long-term investors.
- Prashanth Tapse, Senior VP at Mehta Equities, advised potential investors to hold their positions post-listing despite expected volatility in stock prices.
With its upcoming listing on October 22, Hyundai Motor India Ltd is poised to make waves in the Indian stock market. The strong institutional backing and promising financial performance suggest that while immediate gains may be limited, long-term prospects remain bright for this automotive giant.
