Hyundai Motors India IPO

Hyundai Motor India Ltd is set to launch a $3 billion initial public offering, which will be the largest in the country to date. According to sources, the IPO is expected to open for subscriptions on October 14, with the price range to be revealed by the middle of next week. 

Hyundai Motor India Ltd, the Indian subsidiary of the the South Korean automotive company Hyundai. This IPO will mark the largest in India since the Rs 21,000 crore IPO of LIC.

The subscription period is planned for October 14 to 16, although these dates could change depending on market conditions, especially in light of the escalating conflict in the Middle East.

Hyundai Motor has set its IPO price band between ₹1865 and ₹1960 per share. Retail investors need to invest a minimum of ₹13,720, which corresponds to the minimum lot size of 7 shares. For small non-institutional investors (sNII), the minimum investment is 15 lots (105 shares), totaling ₹205,800. For big non-institutional investors (bNII), the minimum investment is 73 lots (511 shares), amounting to ₹1,001,560.

This is the first automaker to file for IPO in 20 years, after Maruti Suzuki went public in 2003. 

On June 15, the Indian branch of the automotive giant submitted its draft red herring prospectus to the market regulator, aiming for a valuation between $18 billion and $20 billion.

What is positive about the IPO 

Market Positioning: Hyundai's strong brand presence in the Indian automotive market is expected to draw significant interest from investors.

Expansion Opportunities: The company’s focus on enhancing its electric vehicle lineup aligns well with the global trend towards sustainable transportation.

Financial Stability: Hyundai has shown consistent revenue growth, reflecting a solid business foundation and overall financial strength.

What is negative about the IPO 

Market Environment: The success of the IPO is heavily influenced by general market sentiment, which can often be erratic and unstable.

Competitive Landscape: Strong competition from other automotive companies could challenge Hyundai’s market share and affect its profit margins.

Regulatory Factors: Changes in government policies or tax laws may have significant effects on operational results.

As per the published daily Grey Market Premium (GMP), and based on the last 17 sessions of grey market activity, the current GMP stands at ₹67, indicating a downward trend. The GMP has ranged from a low of ₹0 to a high of ₹570. Stay tuned for daily updates on the Hyundai Motor IPO GMP and expected listing price.

Market analysts note that the GMP reflects strong investor interest, with many willing to pay above the issue price.


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