Hyundai Motor India IPO opens: GMP shows slight uptick; Should you apply?

Hyundai Motor India IPO opens for public subscription from October 15, 2024, to October 17, 2024. Check here for key details: Price Band, Lot Size, GMP, Allotment Date, Listing Date, and more

Hyundai Motor India IPO: The country’s largest-ever initial public offering (IPO) of Hyundai Motor India, an Indian arm of Seoul-headquartered Hyundai Motor, opens for public subscription today. The company said it has already raised Rs 8,315.28 crore from anchor investors in the bidding concluded on Monday, October 14, 2024.With the IPO, the South Korean carmaker seeks to raise up to Rs 27,870.16 crore by divesting its 17.5 per cent stake or 142,194,700 shares of the company with a face value of Rs 10 apiece.
 

The Hyundai Motor IPO is a book-built issue and is available at a price band of Rs 1,865 - 1,960, with a lot size of 7 shares. Accordingly, investors can bid for a minimum of 7 shares and in multiples thereof. The minimum amount of investment required by retail investors to bid for the Hyundai Motor IPO is Rs 13,720. The minimum lot size investment for sNII is 15 lots or 105 shares, aggregating to Rs 205,800, and for bNII, it is 73 lots or 511 shares, aggregating to Rs 1,001,560.

Meanwhile, the unlisted shares of the Indian arm of the South Korean carmaker are trading at a premium of Rs 45 against the upper end of the IPO price of Rs 1,960, which translates to a GMP of 2.3 per cent. However, today’s GMP is less than one-third of the Rs 147 recorded on October 9, when the company announced its price band, sources tracking grey market activities revealed.

The three-day subscription window for Hyundai Motor's IPO is set to close on Thursday, October 17, 2024. After the window closes, the share allotment is expected to be finalised on Friday, October 18, 2024. The shares will be credited to demat accounts on Monday, October 21, 2024.Hyundai Motor India shares are likely to debut on the stock exchanges, BSE and NSE, on Tuesday, October 22, 2024.
 

Hyundai Motor IPO review

Hyundai Motor has garnered reviews from several brokerages, including KR Choksey, Anand Rathi Research, Arihant Capital, LKP Securities, and SBI Securities, for the public issue. Analysts broadly remain optimistic about the public issue of the Indian arm of the South Korean carmaker, citing valuations that appear at a discount to the industry leader, Maruti Suzuki India.

Should you subscribe to Hyundai Motor India IPO?

Brokerage firms, including ICICI Direct, KRChoksey Research, SBI Securities, and IDBI Capital, have assigned a 'Subscribe' rating to the Hyundai Motor IPO. Additionally, Anand Rathi Research, LKP Securities, Arihant Capital, and Aditya Birla Money have recommended subscribing to the Hyundai Motor IPO for long-term investment.

About Hyundai Motor India

Hyundai Motor India (HMIL) is an integral part of the prestigious Korea-based Hyundai Motor Group. The company is the second-largest player in the country’s passenger vehicle market. HMIL currently has a portfolio of 13 models across multiple segments, including sedans, hatchbacks, SUVs, and battery electric vehicles. It is predominantly an SUV-focused player with a major presence across urban India.