Hyundai Motor India Limited has officially launched its highly anticipated Initial Public Offering (IPO), opening for subscription from 15th October to 17th October 2024. The IPO offers investors the chance to own shares in one of India’s leading automobile manufacturers.
Key Highlights of the IPO:
- Price Band: The price range for the equity shares is set between Rs 1,865 and Rs 1,960, allowing investors to bid within this range.
- IPO Size: Hyundai aims to raise Rs 27,870.16 crore, making this one of the largest public offerings of 2024.
- Offer for Sale (OFS): Unlike some IPOs, where the funds are used for company growth, this offering is an OFS, meaning the money raised will go to existing shareholders, including Hyundai Motor Corporation, rather than the company itself.
- Lot Size: Investors must apply in lots, with one lot consisting of 7 shares. This brings the minimum investment amount to around Rs 13,055 based on the upper price band.
Subscription and Listing Timeline:
- Subscription Period: 15th to 17th October 2024.
- Share Allotment: Shares are expected to be allotted on 18th October 2024.
- Listing Date: Hyundai Motor India shares will likely be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on 22nd October 2024.
Market Sentiment:
The IPO has generated positive buzz in the market. The shares are already trading at a premium of Rs 65 in the grey market, suggesting investor optimism. While the grey market premium is modest, it signals confidence in Hyundai’s market position.
Hyundai’s Growth Outlook:
Hyundai is a dominant player in the Indian automotive industry and has maintained its position as the second-largest carmaker since 2009. The company’s lineup includes popular models like the Creta, Venue, and i20. Analysts expect continued growth, with the Indian passenger vehicle market projected to grow at a compound annual growth rate (CAGR) of 4.5%-6.5%, depending on overall economic conditions.
Looking forward, Hyundai plans to focus on expanding its portfolio of passenger vehicles, particularly electric vehicles (EVs), and enhancing its premium offerings. The company is also expected to strategically increase manufacturing capacity while maintaining efficient capital allocation.
Lead Managers and Registrar:
Prominent financial institutions, including Kotak Mahindra Capital, Citigroup Global Markets, HSBC Securities, JP Morgan, and Morgan Stanley, are managing the IPO. KFin Technologies is the appointed registrar.
With Hyundai’s strong market presence, strategic growth plans, and a modest grey market premium, the IPO presents a compelling opportunity for long-term investors. However, factors such as rising fuel prices and increasing competition in the EV space could pose challenges to the stock’s performance post-listing.
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