Hyundai Motor IPO India Subscription Status Highlights: The big bang Hyundai IPO is open for subscription between October 15-17. Hyundai Motor IPO’s latest Grey Market Premium (GMP) is Rs 14, as of Oct 16th, 2024, 08:27 PM. With a price band set at Rs 1960, the estimated listing price is Rs 1974 (cap price + today’s GMP), indicating an expected gain of 0.71% per share. The current GMP of Rs 14 reflects downward signals. The GMP has ranged from a low of Rs 0 to a high of Rs 570.
Hyundai Motor India’s IPO is poised to become the largest in India, surpassing the Rs 21,000 crore Life Insurance Corporation (LIC) IPO from May 2022. It is also one of Asia’s largest recent IPOs. The price band for the offering has been set between Rs 1,865 and Rs 1,960 per equity share, with a face value of Rs 10. The cap price is at least 105% of the floor price and less than or equal to 120% of the floor price.
Hyundai Motor India IPO Highlights: Check Hyundai IPO Price, GMP, Allotment Status, Reviews
As of June 30, 2024, Hyundai Motor‘s IPO has a market capitalization of Rs 159,258.06 crore. Key performance indicators (KPIs) include a Return on Capital Employed (ROCE) of 13.69 per cent, a Return on Net Worth (RoNW) of 12.26 per cent, and a Price-to-Book Value (P/BV) ratio of 14.93.
As of June 30, 2024, the financial overview reveals total assets of Rs 25,370.24 million and revenue amounting to Rs 17,567.98 million. The profit after tax stands at Rs 1,489.65 million, contributing to a net worth of Rs 12,148.71 million. Additionally, reserves and surplus are reported at Rs 11,336.17 million, while total borrowing is relatively low at Rs 758.14 million.
Hyundai Motor India IPO has secured Rs 8,315.28 crore from anchor investors, with the anchor bid date set for October 14, 2024. A total of 42,424,890 shares are offered to these investors. The lock-in period for 50 per cent of the anchor shares will end on November 17, 2024, while the remaining shares will have a lock-in period for 90 days that concludes on January 16, 2025.
The Hyundai Motor IPO is priced within a band of Rs 1,865 to Rs 1,960, with a face value of Rs 10. The implied market capitalization is approximately Rs 1,592,580 million. The market lot is set at 7 shares for Retail Investors (Min). The issue opens on October 15, 2024, and closes on October 17, 2024. Prior to the issue, the number of shares stood at 812,541,100, which remains unchanged post-issue.
As a key part of the Hyundai Motor Group, Hyundai Motor India gain early access to global trends in automotive, technologies and features, including from HMC’s dedicated technology arm covering passenger vehicle IT services, smart manufacturing, mobility services, data security services and enterprise IT services – Hyundai Autoever. Leveraging Hyundai Autoever, HMC’s “smart factory” platform, they are able to produce flexibly customized passenger vehicles and parts using automated manufacturing processes.
The Hyundai Motor India IPO has been listed on both NSE and BSE with Kotak Capital, Citigroup, HSBC Securities, JP Morgan India, and Morgan Stanley serving as the Book Running Lead Managers (BRLMs). KFin Tech will act as the registrar. In terms of shareholding pattern, prior to the issue, the promoters hold 100 per cent of the shares, which will decrease to 82.50 per cent post-issue, while the public will hold 17.50 per cent after the offering.
Hyundai Motor India is a part of the Hyundai Motor Group, which is the 3rd largest auto OEM in the world based on passenger vehicle sales in CY2023. They have the support of HMC in many aspects of their operations. HMC has invested an aggregate amount of Rs 1,875.03 billion towards global R&D from CY2014 to June 30, 2024 including towards emerging mobility areas such as electrification, shared mobility and autonomous driving.
Investors in the Hyundai Motor IPO can bid for a minimum of 7 shares, with additional bids in multiples of this amount. For retail investors, the minimum investment is 1 lot (7 shares) for Rs 13,720, while the maximum investment is 14 lots (98 shares) for Rs192,080. Small High Net-Worth Individuals (S-HNI) can apply for a minimum of 15 lots (105 shares) at Rs 205,800, with a maximum of 72 lots (504 shares) for Rs 987,840. Meanwhile, Big High Net-Worth Individuals (B-HNI) can start with a minimum of 73 lots (511 shares) for Rs 1,001,560.
The brokerage houses such as ICICI Direct, Bajaj Broking, IDBI Capital, KR Choksey, Marwadi Financial Services, Chola Securities have recommended to subscribe for the Hyundai Motor India IPO. However Anand Rathi, Arihant Capital, Aditya Birla Capital, SBI Securities, Canara Bank Securities and SMIFS Limited have recommended subscribing to the IPO for the long term.
Hyundai Motor India is expanding its production capacity significantly through the acquisition of a manufacturing plant in Talegaon, Maharashtra in early 2024. This move aims to boost production from 824,000 units in FY24 to 1,074,000 units annually. The increase will be supported by a strategic and calibrated approach in collaboration with Hyundai Motor Company (HMC), ensuring efficient scaling of operations to meet growing demand.
The Hyundai Motor IPO is scheduled from October 15, 2024, to October 17, 2024. The face value is set at Rs 10 per share, and the price band ranges from Rs 1,865 to Rs 1,960 per share. The lot size is 7 shares, with a total issue size of 142,194,700 shares, amounting to approximately Rs 27,870.16 crore. The offer consists of the same number of shares, all valued at Rs 10 each, with a total aggregation of Rs 27,870.16 crore. Employees are eligible for a discount of Rs 186 per share. This is a Book Built Issue IPO, and shares will be listed on both BSE and NSE. The shareholding will remain unchanged pre- and post-issue, at 812,541,100 shares.
Hyundai has ensured to maintain a stable share market in India historically. It enjoys loyalty among the Indian consumer base owing to smooth and affordable after sales service. Equipped with R&D from Korea and an automated factory in Chennai, company has been able to optimise its operations while expanding it’s distribution. Hyundai also plans to gradually become a major player in the EV segment. Company has also recorded one of the highest RoNW among its peers. We believe the company can take advantage of the growing PV market in India with its diverse offerings. At the upper price band of INR 1960, the issue is priced at a P/E of 26.3x post issue based on the FY24 EPS of Rs 74.58. We have a “Subscribe For long term” rating for the issue.
The tentative schedule for the Hyundai Motor IPO is as follows: the offering opens on Tuesday, October 15, 2024, and closes on Thursday, October 17, 2024. The basis of allotment will be finalized on Friday, October 18, 2024. Refunds will begin on Monday, October 21, 2024, and shares will be credited to demat accounts on the same day. The listing date is set for Tuesday, October 22, 2024. Additionally, the cut-off time for UPI mandate confirmation is 5 PM on October 17, 2024.
As of 5:00 PM on Wednesday, October 16, 2024, the subscription data is as follows: Qualified Institutional Buyers (QIB) at 0.58 times, Non-Institutional Investors (NII) at 0.26 times (with NII of 10 Lakhs at 0.18 times and NII of 2 Lakh-10 Lakh at 0.41 times), Retail investors at 0.38 times, and Employee reservations at 1.31 times. Overall, the total subscription stands at 0.42 times..
Hyundai Motor IPO Grey Market Premium (GMP) price has fallen to Rs 35 today from Rs 63 on 15 October 2024. The estimated listing price for today is Rs 1995 which is 1.79 per cent from 1960 the IPO price.
In Q1 FY25, Hyundai Motor India captured a 14.6 per cent share of the domestic passenger vehicle market, ranking second to Maruti Suzuki, which holds 41 per cent. However, Hyundai leads the mid-size SUV segment with approximately 38 per cent market share as of June 2024. Additionally, it is the second-largest exporter of passenger vehicles in India from April 2021 to June 2024.
By the end of 2nd day, the Hyundai Motor India IPO has attracted total bids of Rs 4,356.37 crore. Retail investors submitted bids totaling Rs 3,181.29 crore, whereas non-institutional buyers showed less interest, bidding only Rs 731.39 crore.
The IPO of Hyundai Motor India was subscribed to a total of 26% as of Day 2. The retail buyers subscribed to the issue 0.37 times. The employee category was fully booked on the second day of issue. The NIIs booked the issue 0.23 times.
“Hyundai’s IPO being the first major auto IPO in India in over two decades could attract significant global investor interest. This influx of foreign investment could further enhance the sector’s valuation. The company’s portfolio expansion and manufacturing capabilities highlight the growth potential and investment in the automotive market. The increased competition and innovation driven by Hyundai’s enhanced financial strength post-IPO could push other automakers to reassess their growth potential and market positioning, positively re-rating the sector. Conversely, if the listing has been perceived as overvalued then it can negatively impact,” said Saji John, Senior Research analyst at Geojit Financial Services on Hyundai Motor‘s IPO.
The promoters’ stake will dilute to 82.50% post-issue of Hyundai Motor India. Hyundai Motor Company, based in South Korea, is selling 17.5% of its stake in the issue. India-based automobile giant aims to raise Rs 27,856 crore.
Next week, Waree Engineers will be launching its IPO on October 21. The company will raise a sum of Rs 4,321.44 crore through sale fresh shares and OFS. The IPO will close on October 23. The company’ IPO price band ranges from Rs 1,427 to Rs 1,503 per equity share.
“The issue relatively appears fully priced, but the company is poised for bright prospects post completion of its ongoing expansions. The company reported PAT margins of 6.05% (FY22), 7.67% (FY23), 8.50% (FY24), 8.48% (Q1-FY25), and RoCE margins of 20.37%, 28.75%, 62.90%, 13.69% for the referred periods, respectively,” said Bajaj Broking in an IPO note.
The IPO has received bids worth Rs 5,205.922 crore as of day 2. The employee segemnet was booked 1.22 times, receiving bids worth Rs 187 crore. The company received bids for 0.95 million shares while it offered 0.78 million shares.
Kotak Mahindra Capital Company along with Citigroup Global Markets India, HSBC Securities & Capital Markets, J.P. Morgan India, and Morgan Stanley India Company are the book-running lead managers of the IPO. Kfin Technologies is handling the work of the registrar for the issue.
Hyundai Motor India has allocated shares worth Rs 8,315.3 crore to 225 funds and investors in its anchor round, ahead of the country’s largest IPO set to open on Tuesday. Notable investors in the anchor round include the Government of Singapore, Fidelity Securities Funds, Vanguard Investments Funds, BlackRock, Canada Pension Plan Investment Board, JP Morgan Funds, Abu Dhabi Investment Authority, Societe Generale, and Goldman Sachs.
Hyundai Motor India’s IPO Red Herring Prospectus (RHP) lists its peers in the market, including Maruti Suzuki India, which has a price-to-earnings (P/E) ratio of 17.93 as of October 4, 2024. Other competitors include Tata Motors Ltd with a P/E of 11.36, and Mahindra & Mahindra (M&M) boasting a P/E of 29.96.
In September 2024, Hyundai Motor India reported sales of 64,201 units, marking a 10% decline year-on-year. Year-to-date, the company has sold 577,000 units, showing no significant change compared to the previous year. Hyundai remains the second-largest Original Equipment Manufacturer (OEM) and exporter of passenger vehicles in India, with a current domestic market share of 14.6%.
Hyundai Motor India IPO Live Updates: Hyundai Motor India IPO Day-2 subscription status till 12:51 PM
As of 12:51 PM IST on the second day of subscription, the Hyundai Motor India IPO has been subscribed 24%, according to data from the BSE. The initial share sale received bids for 2,41,56,762 shares against the total offer of 9,97,69,810 shares.
The retail investor portion has seen a subscription rate of 34%, while the non-institutional investor (NII) quota is at 19%. The qualified institutional buyers (QIBs) segment has been subscribed 8%, and the employee portion is subscribed 1.17 times.
On the first day of bidding, the overall issue was subscribed 0.18 times, with the retail portion booked at 0.26 times and the NII portion subscribed 0.13 times. The QIB portion had a subscription rate of 0.05 times.
Hyundai Motor India has allocated shares valued at ₹8,315.3 crore to 225 funds and investors during its anchor round, ahead of the company’s highly anticipated IPO, set to open on Tuesday. Key investors in this round include the Government of Singapore, Fidelity Securities Funds, Vanguard Investments Funds, BlackRock, Canada Pension Plan Investment Board, JP Morgan Funds, Abu Dhabi Investment Authority, Societe Generale, and Goldman Sachs.
The Hyundai Motor India IPO received a lukewarm response on Day 2, with only 22% of the Rs 27,870 crore issue subscribed as of 11:48 AM, according to NSE data. Investors have bid for 2.23 crore shares against the 9.97 crore shares available. Retail individual investors showed more interest, with 33% of their portion subscribed, placing bids for 1.63 crore shares out of the 4.94 crore shares on offer.