Hyundai Motor India IPO opens tomorrow: 15 things to know before you subscribe for Rs 27,856 crore issue

Hyundai Motor India Rs 27,856 crore IPO is set to open for subscription on October 15.  Through the initial public offering, or IPO, the Indian unit of South Korean car manufacturer, Hyundai Motor, will be selling its share in the range of Rs 1,865 and RS 1,960 to raise a total of Rs 27,856 crore.

Hyundai Motor India IPO is set to become the largest public issue in the country, surpassing the Life Insurance Corporation’s (LIC) IPO worth Rs 21,000 crore, which opened for bidding in May 2022.  

Hyundai Motor India IPO is seen as one of Asia’s biggest IPOs recently.

Also, Hyundai Motor will be India’s first carmaker to go public in over two decades since Maruti Suzuki India’s public issue in 2003.

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Hyundai Motor India GMP 

Day ahead of opening, Hyundai India IPO grey market premium (GMP) is trading in the price range of Rs 65 in the unlisted market.

It implies a whopping drop of nearly 90 per cent compared to GMP of Rs 570 seen during the last week of September. However, as per a report by Moneycontrol analysts believe it’s a long-term play and expect it to deliver good returns over time.

According to a report by CNBC TV18, the GMP of Hyundai Motor India fell by over 80 per cent in the last 10 days.

Grey Market Premium, commonly known as GMP, is the difference between the price at which IPO shares are traded in the grey market and the IPO issue price.

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15 points about Hyundai Motor India IPO before you invest

1 - Anchor bid for Hyundai Motor IPO : October 14, 2024  

2 - Hyundai Motor India IPO subscription date : October 15, 2024  

3 - Hyundai Motor India IPO subscription last date : October 17, 2024  

4 - Hyundai Motor India IPO allotment - October 18, 2024 [Tentatively]

5 - Hyundai Motor India shares will be credited to demand accounts on October 21, 2024  

6 - Hyundai Motor India shares will begin trading on BSE, NSE with tentative listing date fixed as October 22, 2024

7 - Investors can place a bid for a minimum of seven equity shares and in multiples of seven shares thereafter  

8 - Retail investors can invest a minimum of Rs 13,720 (for a single lot of seven shares) in the Hyundai Motor India IPO

9 - Maximum investment would be Rs 1,92,080 (for 14 lots of 98 shares) as they can not invest more than Rs 2 lakh in the Hyundai Motor India IPO

10 - The price band will be between Rs 1,865 to Rs 1,960 per equity share with a face value of Rs 10

11 - The deal will be the first time Hyundai is listed outside of its South Korean home market  

12 - Hyundai Motor India plans to raise around Rs 3.3 billion, or over Rs 27,870.16 crore

13 - Hyundai Motor will not issue new shares in the IPO which will involve its South Korean parent selling up to 142,194,700 shares (14.22 crore shares) or a 17.5 per cent of its stake in the wholly owned unit to retail and other investors through the offer for sale (OFS) route

14 - Hyundai Motor India IPO does not include any fresh issue component

15 - After the IPO, Hyundai Motor will continue to hold an 82.5 per cent stake. If shares are priced at the top end of the range, the IPO effectively values the top automaker at $19 billion or Rs 15,954 crore in the country’s biggest stock offering this year.

Hyundai Motor India IPO: Should you subscribe?

Given the steady growth prospects amid industry tailwinds, robust financials and healthy SUV product slate, ICICI Direct Research has assigned a “Subscribe” rating on Hyundai Motor India.

The brokerage, however, said it expects limited listing gains for this IPO but expects the company to deliver healthy double-digit portfolio returns over a medium to long term period.

Also Read: India's biggest Hyundai Motor India IPO gets even bigger, set to open on Oct 15

“Subscribe for long term,” rating for Hyundai Motor India IPO has been assigned by Arihant Capital, which said Hyundai has plans to gradually become a major player in the EV segment, and it has also recorded one of the highest RoNW among its peers.  

It believes the company can take advantage of the growing PV market in India with its diverse offerings.

Mayuresh Joshi, Head of Equity Research at William O’ Neil, has also said Hyundai’s IPO is “very attractive” in terms of valuation, product offerings, and pricing, recommending a “Subscribe” rating to the IPO.

With inputs from agencies.