Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), committed to its global brand vision of ‘Progress for Humanity.’ The company adopts sustainable and green manufacturing practices, providing mobility solutions powered by industry-leading technology.

The upcoming Hyundai Motor India IPO is a Book Built Issue amounting to ₹27,870.16 Crores, consisting entirely of an Offer for Sale of 1,421.94 Lakh Shares. The subscription period is set to open on October 15, 2024, and will close on October 17, 2024. Allotment is expected to be finalized on or around October 18, 2024, with shares projected to be listed on both the BSE and NSE on or about October 22, 2024.

The share price band for the Hyundai Motor India IPO is established at ₹1,865 to ₹1,960 per equity share, with a minimum lot size of 7 shares. Retail investors are required to make a minimum investment of ₹13,720, while High-Net-Worth Individuals (HNIs) must invest in 15 lots (105 shares), amounting to ₹2,05,800. A consortium of leading firms, including Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited, and Morgan Stanley India Company Private Limited, serves as the book-running lead managers, while KFin Technologies Limited acts as the registrar for the issue.

Hyundai Motor India Limited IPO GMP Today

The Grey Market Premium (GMP) for Hyundai Motor India Limited IPO is currently expected to be ₹0, indicating no real trading activity based on the GMP. The price discovery process prior to the listing remains uncertain, as the GMP reflects unregulated demand and supply dynamics. This information is provided strictly for educational and informational purposes.

Hyundai Motor India Limited IPO Live Subscription Status Today

As of 09:00 PM on October 17, 2024, the live subscription status for the Hyundai Motor India IPO shows that it has been subscribed 2.37 times on its third day of the subscription period. Investors can check the Hyundai Motor India IPO Live Subscription Status on the BSE for the latest updates.

Hyundai Motor India Limited IPO Anchor Investors Report

Hyundai Motor India has raised ₹8,315.27 Crores from Anchor Investors at a price of ₹1,960 per share, in consultation with the book-running lead managers. The company has allocated 42,424,890 equity shares to these investors. Shares allotted to Anchor Investors are sourced from the Qualified Institutional Buyers (QIBs) reservation portion.

Hyundai Motor India Limited IPO Allotment Date - Step-by-Step Guide to Check Allotment Status Online

The allotment date for the Hyundai Motor India IPO is scheduled for October 18, 2024 (Friday). After the allotment is confirmed, investors can check their status on the Registrar's Website. Here's how to verify your allotment status:

Navigate to the IPO allotment status page.

Select Hyundai Motor India Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

By following these steps, investors can efficiently check their allotment status and make informed decisions regarding their investments.

Objectives of Hyundai Motor India Limited IPO

Hyundai Motor India will not receive any proceeds from this Offer (the “Offer Proceeds”), as all proceeds will be directed to the Promoter Selling Shareholder, after deducting Offer-related expenses and relevant taxes borne by them.

Hyundai Motor India IPO Review

Hyundai Motor India Limited (HMIL) aligns itself with its parent company, Hyundai Motor Company (HMC), striving for sustainable practices and innovation in the automotive sector.

Financially, the company has demonstrated significant growth:

Revenue for fiscal years 2024, 2023, and 2022 stood at ₹7,13,023.25 Million, ₹6,14,366.42 Million, and ₹4,79,660.48 Million, respectively.

EBITDA figures for the same periods were ₹91,326.16 Million, ₹75,487.80 Million, and ₹54,860.89 Million.

Profit After Tax for fiscal years 2024, 2023, and 2022 reached ₹60,600.44 Million, ₹47,092.50 Million, and ₹29,015.91 Million, respectively.

These metrics indicate a steady upward trajectory in financial performance.

For the Hyundai Motor India IPO, the company is issuing shares with a pre-issue EPS of ₹74.58 and a post-issue EPS of ₹74.58. The pre-issue P/E ratio is 26.28x, with a similar post-issue ratio of 26.28x. The industry P/E ratio stands at 23.57. Additionally, the company's Return on Capital Employed (ROCE) for FY24 is an impressive 62.90%, while the Return on Equity (RoE) is 56.82%. These metrics suggest that the IPO is fairly priced relative to its peers.

However, several concerns warrant investor caution:

Increased Royalty Payments: There is a risk that the parent company may raise royalty charges, potentially impacting profitability.

High Promoter Holding and Pending Stake Sale: Even post-listing, promoters will retain 82.5% ownership, with a 7.5% stake sale still pending, which could exert supply pressure in the market.

Missed Wealth Creation Opportunity: Unlike Maruti Suzuki, which offered substantial early gains, Hyundai Motors is going public only after fully capitalizing on its growth potential.

Competition from KIA Motors: Hyundai faces direct competition from its sister brand, KIA Motors, which could restrict its market share growth.

Valuation Concerns: Hyundai Motors India holds just 6% of total industry sales and 8% of profits while seeking a 42% share of market capitalization.

PE Valuation Mismatch: With a 14-15% market share in India, Hyundai is demanding a PE ratio of 27x, comparable to Maruti Suzuki, which boasts a 40% market share. In contrast, Tata Motors trades at a PE of 11x, and Mahindra & Mahindra at 35x.

The Grey Market Premium (GMP) indicates potential listing gains of 0%. Considering the company's financial performance and IPO valuation, we advise investors to avoid the Hyundai Motor India Limited IPO for both listing gains and long-term investment purposes.

In summary, while the Hyundai Motor India IPO represents a significant opportunity in the automobile sector, potential investors should carefully consider the associated risks and market conditions before proceeding. For further insights on current investment opportunities, explore the best IPOs to apply now and stay updated with the latest IPO news and stock market trends.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX.

For more insights, visit the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay informed with the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.