Here are 10 things investors should know about it: the most recent GMP, important risks, and issue details.
Hyundai Motor India IPO Price Range and Dates:
The range for the IPO price is ₹1,865 to ₹1,960 for each equity share October 15, 2024 is when the subscription window opens, and it ends on October 17, 2024.
On October 22, 2024, shares will be listed on the BSE and NSE. The issuance will be available to anchor investors on October 14, 2024.
Hyundai Motor India’s Market Debut:
After Maruti Suzuki’s 2003 IPO, this will be Hyundai’s first stock market listing outside of South Korea and India’s first automaker IPO in 20 years.
After Maruti Suzuki, Hyundai Motor India is the country’s second-largest automobile manufacturer based on sales.
Size and Structure of the IPO:
Hyundai hopes to raise $3.3 billion, or 27,870.16 crores, through this IPO.
There won’t be any new shares issued; all of the offering will be offer-for-sale (OFS) shares. The parent company of Hyundai plans to sell 142.19 million shares, or 17.5% of its ownership. The parent business will own an 82.5% interest after the IPO.
With a valuation of around $19 billion (₹159,540 crores) at the higher price range, Hyundai would be the largest initial public offering (IPO) in India in 2024.
IPO Lot Size and Minimum Investment:
Seven shares is the minimum lot size that investors may apply for.
A minimum retail investment of about ₹13,720 would be required.
IPO Reservation:
Up to 60% of the net issue size may go to anchor investors, with the remaining 50% designated for qualified institutional buyers (QIBs).
Amounts allocated to retail investors are 35% and non-institutional investors (NIIs) are 15%. Hyundai employees are the holders of 778,400 shares
Goal of the IPO:
As an offer-for-sale (OFS), all money raised will be given to the shareholders who are selling. There won’t be any immediate profits for the corporation.
Important Risks for Investors:
Due to its heavy reliance on a small number of suppliers for components and supplies, operations may be impacted in the event of supply disruptions.
It depends on Hyundai Motor firm, its parent firm, for vital parts and operations.
Synopsis of Hyundai’s Business:
Based in India since 1996, Hyundai produces and markets sedans, hatchbacks, SUVs, and battery electric vehicles (EVs).Outlasting US rivals like Ford and General Motors, Hyundai has built a solid foothold in India with 1,366 sales locations and 1,550 service centres.
By March 31, 2024, Hyundai had exported 12 million cars from India, establishing the country as a major export hub.
Industry Peers and Market Standing:
Maruti Suzuki (P/E ratio: 17.93), Tata Motors (P/E: 11.36), and Mahindra & Mahindra (P/E: 29.96) are among Hyundai’s listed competitors.
With 7.3 million vehicles sold in 2023, Hyundai Motor Group (Hyundai + Kia) is the third-largest automotive OEM in the world.
Current Grey Market Premium (GMP):
₹60 is the current GMP for Hyundai’s IPO, according to Investorgain.com. This Indicates a possible listing price of ₹2,020 per share, which is 3.06% more than the upper band price of ₹1,960.The present GMP is at its lowest point of ₹0, while the highest point ever recorded was ₹570, suggesting a fall in interest, according to recent patterns in GMP.
Hyundai’s initial public offering is anticipated to exceed the LIC IPO’s ₹21,000 crores, which was launched in May 2022, and become the largest public offering in India to date.