The much-anticipated Hyundai Motor India IPO has officially opened, offering a total of ₹27,870.16 Crore through an Offer for Sale (OFS) of 1,421.94 lakh shares. The subscription period for this IPO runs from October 15, 2024, to October 17, 2024. Investors will be eagerly awaiting the allotment status, which is expected to be finalized by October 18, 2024, with shares listing on BSE and NSE on October 22, 2024.

The price band for the Hyundai Motor India IPO has been set between ₹1,865 to ₹1,960 per equity share, and retail investors can purchase a minimum of 7 shares, requiring an investment of at least ₹13,720. High-net-worth individuals (HNIs) will need to buy at least 15 lots (105 shares), with a minimum investment of ₹2,05,800.

Hyundai Motor India IPO Financial Overview

Hyundai Motor India Limited (HMIL), a wholly-owned subsidiary of Hyundai Motor Company (HMC), has showcased strong financial growth over recent fiscal years. The company reported revenues of ₹7,13,023.25 million for Fiscal 2024, up from ₹6,14,366.42 million in Fiscal 2023 and ₹4,79,660.48 million in Fiscal 2022. Similarly, its EBITDA for these years stood at ₹91,326.16 million, ₹75,487.80 million, and ₹54,860.89 million, respectively. Notably, the company's profit after tax (PAT) in Fiscal 2024 was ₹60,600.44 million, marking substantial growth compared to the ₹47,092.50 million in Fiscal 2023 and ₹29,015.91 million in Fiscal 2022.

This steady upward trajectory demonstrates Hyundai's strong market presence and commitment to sustainability, aligned with the company's global vision of “Progress for Humanity” through sustainable and green manufacturing operations.

Grey Market Premium (GMP) Insights

As of the latest update, the Grey Market Premium (GMP) for the Hyundai Motor India IPO stands at ₹0. This indicates that there hasn't been significant movement in the unregulated grey market, meaning potential listing gains may be limited. However, GMP should be viewed cautiously, as it depends on speculative factors rather than concrete financial indicators.

For more live updates on the subscription status and the latest GMP values, check the Hyundai Motor India Live Subscription Status.

IPO Subscription and Anchor Investor Details

On its final day, October 17, 2024, the Hyundai Motor India IPO subscription had reached 0.51 times by 11:30 AM, showcasing moderate demand in the early hours. Institutional investors and retail participants are expected to increase the subscription momentum as the day progresses.

Anchor Investors have already shown confidence in Hyundai’s offering, with the company raising ₹8,315.27 Crore from them at the upper price band of ₹1,960 per share. Anchor investors were allocated 42,424,890 shares, further underscoring the appeal of Hyundai Motor India in the institutional market.

Key Concerns and Risks

Despite the positive financial metrics and institutional interest, there are several concerns investors should consider:

 1. Increased Royalty Payments: The parent company, Hyundai Motor Company, may raise royalty charges, which could reduce profitability for Hyundai Motor India.

 2. High Promoter Holding: Even after listing, 82.5% of the company's shares will remain with the promoters, leaving a relatively small float in the market, with an additional 7.5% stake sale still pending.

 3. Competition from KIA Motors: Hyundai's direct competitor is KIA Motors, a sister brand that may limit Hyundai’s growth in market share.

 4. Valuation Mismatch: Hyundai Motors seeks a PE ratio of 27x, despite holding a 14-15% market share, while Maruti Suzuki, with a 40% market share, trades at the same PE. Other competitors like Tata Motors and Mahindra & Mahindra trade at 11x and 35x, respectively.

These factors suggest that while the IPO is backed by solid financials, investors need to weigh these risks before making any investment decisions.

Hyundai Motor India IPO Allotment Process

For those who have applied, the allotment date for the Hyundai Motor India IPO is October 18, 2024. Investors can easily check their allotment status by following these steps:

  ▪ Go to the IPO allotment status page on the registrar’s website (KFin Technologies Limited).

  ▪ Select Hyundai Motor India Limited IPO from the list of available IPOs.

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

  ▪ Submit the details to check whether you’ve been allotted shares.

Conclusion: Should You Subscribe?

Hyundai Motor India has demonstrated solid financial growth and commands a strong market position. However, concerns regarding valuation, high promoter holdings, and competition from KIA Motors could deter long-term investors. Additionally, with the Grey Market Premium (GMP) indicating 0% potential listing gains, the IPO may not be suitable for those looking for short-term profits.

Given the factors at play, it may be best to avoid subscribing for listing gains or long-term investment unless you have a high-risk tolerance.

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