Hyundai Motor India Limited (HMIL), a wholly owned subsidiary of Hyundai Motor Company (HMC), is set to launch its Initial Public Offering (IPO), reflecting the company's commitment to sustainable and green manufacturing operations in line with HMC's global brand vision of ‘Progress for Humanity’. This move is aimed at enhancing mobility solutions equipped with industry-leading technology.

The 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 for the Hyundai Motor India IPO is from October 15 to October 17, 2024, with the allotment expected to be finalized on or around October 18, 2024. The shares will subsequently be listed on both the BSE and NSE, with a tentative listing date set for around October 22, 2024.

The share price band for the Hyundai Motor India IPO is set between ₹1,865 to ₹1,960 per equity share, with a minimum lot size of 7 shares. This means that retail investors need to invest at least ₹13,720, while High-Net-Worth Individuals (HNIs) must invest in a minimum of 15 lots (105 shares), totaling ₹2,05,800.

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 are the book-running lead managers for this IPO, while KFin Technologies Limited serves as the registrar for the issue.

Hyundai Motor India Limited IPO GMP Today

The Grey Market Premium (GMP) of Hyundai Motor India Limited IPO is currently expected to be ₹0, indicating no anticipated price discovery prior to the listing on the stock exchange. This premium relies heavily on demand and supply dynamics in the unorganized market, which is not a reliable method for gauging stock performance.

Hyundai Motor India Limited IPO Live Subscription Status Today

As of 01:15 PM on October 16, 2024, the live subscription status for the Hyundai Motor India IPO shows a subscription rate of 0.22 times on its second day. Investors can keep track of the live subscription status at BSE to make informed decisions.

Hyundai Motor India Limited IPO Anchor Investors Report

Hyundai Motor India has successfully raised ₹8,315.27 Crore from anchor investors at a price of ₹1,960 per share, allocating 42,424,890 equity shares to them. This allocation is part of the Qualified Institutional Buyers (QIBs) reservation.

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

The allotment date for the Hyundai Motor India IPO is October 18, 2024. To check the allotment status, investors can follow these steps:

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 easily determine their allotment status and plan their next actions accordingly.

Objectives of Hyundai Motor India Limited IPO

It is crucial to note that Hyundai Motor India will not receive any proceeds from the offer. All proceeds will be allocated to the Promoter Selling Shareholder after the deduction of offer-related expenses and taxes, which will also be borne by the Promoter.

Hyundai Motor India IPO Review

From a financial standpoint, Hyundai Motor India Limited has shown remarkable growth. The company's revenue for Fiscal 2024, Fiscal 2023, and Fiscal 2022 stood at ₹7,13,023.25 Million, ₹6,14,366.42 Million, and ₹4,79,660.48 Million, respectively. Additionally, the EBITDA figures were ₹91,326.16 Million, ₹75,487.80 Million, and ₹54,860.89 Million for the same periods, while the Profit after Tax was recorded at ₹60,600.44 Million, ₹47,092.50 Million, and ₹29,015.91 Million. These numbers indicate a consistent and healthy financial performance.

For this IPO, the company is offering shares with a pre-issue EPS of ₹74.58 and a post-issue EPS of ₹74.58. The pre-issue P/E ratio is calculated at 26.28x, which matches the post-issue P/E ratio, and is compared against an industry average of 23.57. Furthermore, the ROCE for FY24 is at 62.90%, while the RoE stands at 56.82%, suggesting that the IPO is fairly priced.

However, potential investors should also consider several concerns before making a decision:

Risk of Increased Royalty Payments: There is a possibility that the parent company may raise royalty charges, which could negatively impact profitability.

High Promoter Holding and Pending Stake Sale: After the IPO, promoters will maintain 82.5% ownership, with a 7.5% stake sale still pending, which might increase supply pressure in the market later.

Missed Wealth Creation Opportunity: Unlike competitors like Maruti Suzuki, Hyundai Motors is entering the public market after already capitalizing on much of its growth potential.

Competition from KIA Motors: As a sister brand, KIA Motors poses direct competition to Hyundai, potentially limiting its market share growth.

Valuation Concerns: Despite holding only a 6% share of total industry sales and 8% of profits, Hyundai is seeking a 42% share in market capitalization.

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

Given the current Grey Market Premium (GMP) showing potential listing gains of 0%, investors are advised to exercise caution. Based on the company's financial performance and the overall IPO valuation, it may be prudent to avoid the Hyundai Motor India Limited IPO for immediate listing gains or long-term investments.

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