Hyundai Motor India is gearing up for a significant initial public offering (IPO) that is set to open for subscription on October 15, 2024. This IPO is noteworthy as it is projected to be the largest in India’s history, with an estimated size of ₹27,870 crore. The company, a subsidiary of South Korea’s Hyundai Motor Company, has been a key player in the Indian automotive market and is known for its diverse range of vehicles.
Main Points
Full Details of Hyundai Motor India IPO
IPO Timeline
- Anchor Bid Date: October 14, 2024
- Public Subscription Period: October 15 to October 17, 2024
- Allotment Date: Expected on October 18, 2024
- Shares Credited to Demat Accounts: October 21, 2024
- Listing Date: October 22, 2024
Price Band and Lot Size
The price band for the Hyundai Motor India IPO is set between ₹1,865 and ₹1,960 per share. Investors will need to apply for a minimum of 7 shares, making the minimum investment approximately ₹13,720. The lot size for institutional investors varies significantly, with certain categories requiring much larger investments.
Grey Market Premium (GMP)
As of now, the grey market premium (GMP) for Hyundai Motor India shares stands at around ₹147, reflecting a potential gain of about 7.5% from the upper end of the price band. This premium has fluctuated recently; it was significantly higher earlier in the month but has since seen some decline due to market sentiment.
Financial Performance
Hyundai Motor India has shown robust financial growth. For the fiscal year ending March 2024, the company reported a net profit of ₹6,060 crore, marking an increase of 28.7% from the previous year. Revenue also grew by 15.8%, reaching approximately ₹69,829 crore. Such figures indicate strong operational performance and market demand for their vehicles.
Market Position
Hyundai Motor India holds a prominent position in the Indian automotive sector as the second-largest car manufacturer in the country. The company commands about 15% market share and has been recognized for its reliable and innovative vehicles across various segments including sedans, SUVs, and electric vehicles.
Investment Considerations
Analysts have mixed views regarding this IPO. Some suggest that while the valuation appears fully priced at a P/E ratio of around 26-27x, the company’s growth prospects remain promising. The IPO’s success could hinge on investor sentiment and broader market conditions at the time of listing.
Subscription Details
The IPO will be entirely an offer-for-sale (OFS) by Hyundai Motor Company, which will sell up to approximately 142 million equity shares. Notably, Hyundai will not receive any proceeds from this offering as it is purely a divestment by its parent company.
Investor Sentiment
Market observers are cautious yet optimistic about the upcoming IPO. The grey market activity can often provide insights into investor sentiment; however, it remains volatile and can change rapidly based on various factors including overall market trends and company performance.
With its strong brand recognition and established presence in India’s automotive landscape, Hyundai Motor India’s IPO is attracting considerable attention from potential investors. As the subscription date approaches, many are weighing their options carefully based on financial metrics and market conditions.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
