Hyundai IPO
The Hyundai Motor India Limited IPO is set to be one of the most anticipated public offerings of the year. The price band for the IPO has been set between ₹1,865 and ₹1,960 per equity share, each with a face value of ₹10. The IPO will open for subscription on Tuesday, October 15, and will close on Thursday, October 17. Before the public opening, the allocation to anchor investors will take place on Monday, October 14.
Hyundai IPO: Price Band and Valuation
At the lower end of the price band, the floor price is 186.50 times the face value of the equity shares, while at the upper end, the cap price is 196.00 times. In terms of the price-to-earnings (P/E) ratio, the diluted EPS for the financial year ending in 2024 puts the company at a P/E ratio of 25.01 times at the lower end and 26.28 times at the upper end. This compares to the average P/E ratio of 23.57 times for industry peers, signaling a competitive valuation.
Lot Size and Investor Allocation
Investors looking to participate in the Hyundai Motor India IPO can do so with a minimum lot size of 7 equity shares, and multiples of 7 shares thereafter.
- Qualified Institutional Buyers (QIBs) will be allocated up to 50% of the shares.
- Non-Institutional Investors (NIIs) will have at least 15% reserved for them.
- Retail investors will have no less than 35% of the offer reserved.
Additionally, employees of Hyundai Motor India have been given a special reservation of up to 778,400 equity shares, with a ₹186 discount per share.
Important Dates
- Basis of Allotment: The allotment of shares will be finalized on Friday, October 18.
- Refund Initiation: Refunds will be processed starting Monday, October 21.
- Credit to Demat Accounts: On the same day as the refund, shares will be credited to successful allottees’ demat accounts.
- Listing Date: Hyundai Motor India shares are expected to debut on the stock exchanges (BSE and NSE) on Tuesday, October 22.
Company Overview
Hyundai Motor India is a significant player in both the Indian and global automotive markets. According to a CRISIL Report, the company is ranked as the third largest original equipment manufacturer (OEM) in the world in terms of passenger vehicle sales in 2023. Hyundai has consistently held the second-largest market share in India’s passenger vehicle market since 2009, making them a trusted name among Indian consumers.
Hyundai is known for producing reliable, technologically advanced, and feature-rich vehicles that cater to the diverse needs of consumers. The company’s ability to innovate has made it a favorite among Indian families and car enthusiasts alike.
In the last financial year, Hyundai Motor India saw a 29% increase in profit after tax (PAT) and a 16% increase in revenue, signaling strong financial growth and operational efficiency.
Peers and Market Position
The company’s main competitors, according to the red herring prospectus (RHP), include Maruti Suzuki India Ltd. (P/E of 29.38), Tata Motors Ltd. (P/E of 11.36), and Mahindra & Mahindra Ltd. (P/E of 29.96). Hyundai’s P/E ratios for this IPO, at both ends of the price band, compare favorably to these peers, offering an attractive proposition for investors.
IPO Details and Merchant Bankers
Hyundai Motor India’s parent company, Hyundai Motor Company, will offer 14.2 crore equity shares through this offer-for-sale (OFS). There is no fresh issue of shares as part of this IPO. The offering is being managed by some of the biggest names in the financial world: Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India, and Morgan Stanley India Company. The registrar for the IPO will be KFin Technologies.
Grey Market Premium (GMP)
As of today, Hyundai Motor India’s IPO has a GMP of +₹147, suggesting that investors are willing to pay a premium above the issue price in the grey market. This puts the estimated listing price at ₹2,107 per share, reflecting a 7.5% premium over the upper-end IPO price.
Conclusion
The Hyundai Motor India IPO is poised to attract significant interest from institutional and retail investors alike. With a strong track record, competitive pricing, and solid market presence, Hyundai is offering an opportunity for investors to be part of one of the world’s leading automotive companies. Whether you’re an institutional investor, retail participant, or an employee taking advantage of the special discount, this IPO could be an exciting addition to your portfolio.
FAQs
When will the bidding for Hyundai IPO start?
15 Oct’24 – 17 Oct’ 24
