Hyundai Motor IPO India Subscription Status Highlights: The Hyundai Motor IPO will be listing on the bourses on October 22. The company’s shares were attracting a premium of almost 4% in the unofficial market against a discount a few days ago. The issue was subscribed 2.37 times overall by the close of bidding on October 17, 2024 (Day 3). In detail, the retail category saw a 0.50-time subscription, the Qualified Institutional Buyers (QIB) segment was subscribed 6.97 times, and the Non-Institutional Investors (NII) category saw a 0.60-time subscription.
The IPO involved a public issue of 141,416,300 equity shares, with 49,495,705 shares allocated to retail investors, 28,283,260 shares to QIBs, and 21,212,445 shares for non-institutional investors.
Hyundai Motors India IPO Live Updates: Check Hyundai IPO Price, GMP, Allotment Status, Reviews Live
Hyundai Motor India IPO Live Updates: 5 biggest IPO in India so far
Apart from the nearly Rs 28,000 crore Hyundai IPO, the other key IPOs that were significantly large include
1. LIC with issue size of Rs 21008.48 crore
2. Adani Enterprises with issue size of Rs 20000 crore
3. PayTm with issue size of Rs 18300 crore
4. Vodafone with issue size of Rs 18000 crore
5. Coal India with issue size of Rs 15199.44 crore
Hyundai Motor India IPO Live Updates: Largest IPO till date in India
The Hyundai IPO is the largest so far in India, exceeding the likes of LIC. It is a book built issue totalling to around Rs 27,870.16 crore. The issue is however an offer for sale of 14.22 crore shares. There is no issuance of fresh shares. This is also a matter of concern for many investors. However, most market observers believe that for he long-term, the stock offers value.
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Hyundai Motor India's shares were attracting a premium of bit less than 3% in the unofficial market a day ahead of listing. The grey market premium indicates a positive listing on October 22. However, the stocks were fetching a discount of 1.63% on October 17.
"The Hyundai Motor India IPO is highly anticipated due to the company’s strong market position in the Indian passenger vehicle segment. The shares might list at Rs 2,035 on 22nd October. Despite some concerns regarding short-term listing gains due to subdued grey market premium, the company offers steady growth prospects amid industry tailwinds, robust financials and healthy SUV product demand. Hyundai’s leadership in India's passenger vehicle market, along with its strategic focus on electric vehicles makes a compelling investment for long-term investors," said Master Capital Services in an IPO note.
Hyundai Motor India IPO Live Updates: Mehta Equities on Hyundai IPO ahead of listing
"For allotted investors, one should not expect quick bucks on listing day. Hence, we recommend "Hold" despite knowing the short-term volatility in the sector's demand and supply scenario. For non-allottees, we advise to wait and watch for the price to settle and revisit the space with better-discounted opportunities as for long-term investors, Hyundai’s growth story remains intact in line with India's growth," said Prashanth Tapse, Senior Vice President of Research at Mehta Equities in an IPO note.
Hyundai Motor India IPO Live Updates: Hyundai Motor India IPO saw maximum participation from QIBs
Hyundai Motor India IPO Live Updates: Hyundai Motor India IPO Managed by Top Merchant Bankers
Hyundai Motor India is set to launch its IPO, managed by a consortium of leading merchant bankers, including Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India, and Morgan Stanley India. Additionally, KFin Technologies has been appointed as the registrar for the IPO, ensuring a streamlined process for potential investors.
Hyundai Motor India IPO Live Updates: Why is The Hyundai Motor India IPO Important?
Hyundai’s IPO is the first public offering by an Indian automaker in two decades, following Maruti Suzuki’s market debut in 2003. This launch comes at a time when Indian stock markets are hitting record highs, highlighting the increasing trend of companies entering the public market.
Hyundai Motor India IPO Live Updates: Motilal Oswal Gives "Subscribe" Rating to Hyundai India, Expects Long-Term Growth
At the upper price band, Hyundai India's IPO appears reasonably priced compared to Maruti Suzuki, which trades at 29.8x. Motilal Oswal expects Hyundai to benefit significantly from growth in the passenger vehicle (PV) segment, driven by its strong presence in the SUV market. The company is also planning several electric vehicle (EV) launches and has outlined a capex of Rs 32,000 crore to develop EV capabilities, including battery assembly and charging infrastructure, while expanding its overall manufacturing capacity over FY23-32. The brokerage has issued a "subscribe" rating with a "long-term" view.
Hyundai Motor India IPO Live Updates: Hyundai Motor India Reports 10% Decline in September 2024 Sales
In September 2024, Hyundai Motor India reported sales of 64,201 units, reflecting a 10% year-on-year decline. Year-to-date, the company has sold 577,000 units, showing little change from the previous year. Despite the decline, Hyundai remains the second-largest Original Equipment Manufacturer (OEM) and exporter of passenger vehicles in India, holding a domestic market share of 14.6%.
Hyundai Motor India IPO Live Updates: Anand Rathi says “Subscribe” to Hyundai Motor India IPO
According to a brokerage report, Hyundai India has consistently maintained its position as the top auto OEM in India by sales volume in the mid-size SUV sub-segment from FY19 through Q1 of FY25. The company's diverse range of passenger vehicles is designed to cater to a broad spectrum of customers, offering options for every need.
Anand Rathi, the brokerage firm, highlighted Hyundai India’s commitment to investing in research and development (R&D) and introducing new passenger vehicles to strengthen its market presence. “Hyundai follows a premiumization strategy, focusing on selling higher-end trims with a higher average selling price (ASP) for their vehicles,” said Anand Rathi. While the issue is considered fully priced, the brokerage has given a "subscribe" rating with a "Long Term" view on the IPO.
Hyundai Motor India IPO Live Updates: Key Risk for Hyundai Motor India IPO
Hyundai Motors relies heavily on a limited number of suppliers for essential parts and materials. Any increase in the prices of these components could negatively impact the company’s business and operational results.
Additionally, disruptions in the supply chain may adversely affect operations. The automaker also depends on its promoter, Hyundai Motor Company, for crucial operational support and materials.
Hyundai India's management, including Managing Director Unsoo Kim, CFO Wangdo Hur, and COO Tarun Garg, outlined the company’s strong positioning to capitalize on the domestic passenger vehicle (PV) sales upcycle. The management noted that Hyundai has a significant 63% exposure to high-growth utility vehicles (UVs).
To support this growth, the company plans to increase its production capacity from 0.82 million to 1.07 million units, catering to both domestic and international markets. Additionally, Hyundai is focused on expanding its model portfolio, with plans to introduce four electric vehicles (EVs) in the coming years. The company is also exploring the possibility of launching certain global models in the Indian market.
The company's shares will hit the D-Street on October 22. Hyundai India raised Rs 27,870.16 crores, highly subscribed by QIBs and saw a lacklustre interest from retail buyers. The issue was entirely an offer for sale of 14.22 crore shares. Also, the issue included a reservation of up to 778,400 shares for employees, which was offered at a discount of Rs 186 to the issue price.
Hyundai Motor India IPO Live Updates: Waaree Energies IPO opens today
Waaree Energies is set to open for subscription on 21st October 2024 and will remain available until 23rd October 2024. Investors can subscribe to the shares of the company within this three-day window, with the IPO price band set between Rs 1,427 and Rs 1,503 per equity share.
Hyundai Motor India IPO Live Updates: GMP indicates listing gains
The stock of Hyundai Motor India was commanding a premium of almost 4% to the issue price in the unofficial market. The grey market premium indicates a listing a pop. The IPO was closed on October 17 and will be listed on the bourses on October 22.
Qualified Institutional Buyers (QIBs):
QIBs include entities like financial institutions, banks, foreign institutional investors (FIIs), and mutual funds registered with SEBI. These investors typically represent small investors who participate through mutual funds, ULIP schemes from insurance companies, and pension schemes.
Non-Institutional Investors (NIIs):
NIIs consist of high-net-worth individuals (HNIs), Non-Resident Indians (NRIs), companies, trusts, and others who bid for shares exceeding Rs 2 lakh. Unlike QIBs, NIIs are not required to be registered with SEBI.
Hyundai Motor's IPO offers a total of 14,21,94,700 shares for subscription, with allocations as follows: 2,82,83,260 shares (19.89%) reserved for Qualified Institutional Buyers (QIBs), 2,12,12,445 shares (14.92%) for Non-Institutional Investors (NIIs), 4,94,95,705 shares (34.81%) for Retail Individual Investors (RIIs), 7,78,400 shares (0.55%) for employees, and 4,24,24,890 shares (29.84%) for Anchor Investors.
After the share allocation is announced, applicants can check the Hyundai IPO allotment status online by visiting either the BSE website or the official registrar's website. KFintech, the official registrar for this public issue, provides allotment details on its site kosmic.kfintech.com. You can conveniently access the allotment status by logging in through the direct BSE link — bseindia.com/investors/appli_check.aspx — or by using the direct KFintech link — kosmic.kfintech.com/ipostatus.
Investors can verify their allotment status by visiting the Kfin Technologies website.
To check the Hyundai IPO allotment status online via the BSE website, follow these steps:
Your Hyundai IPO allotment status will then be displayed on your screen, either on your computer or mobile device.
The final day of bidding saw a significant surge in demand, especially among QIBs, who subscribed at an impressive 6.97 times. NIIs subscribed at 0.60 times, Retail investors at 0.50 times, and Employees at 1.74 times. Overall, the IPO reached a total subscription of 2.37 times, reflecting strong interest in the offering.
On the second day, investor participation increased. QIBs subscribed at 0.58 times, NIIs at 0.26 times, Retail investors at 0.38 times, and Employees at 1.31 times, leading to a total subscription rate of 0.42 times.
The Hyundai Motor India Ltd (HMIL) IPO, open for public bidding from October 15 to October 17, 2024, saw a modest start on Day 1. Subscription rates were relatively low, with Qualified Institutional Buyers (QIBs) at 0.05 times, Non-Institutional Investors (NIIs) at 0.13 times, Retail investors at 0.27 times, and Employees at 0.81 times, resulting in an overall subscription of 0.18 times.
Hyundai Motor India has demonstrated consistent growth in revenue and profit margins. In FY24, the company's revenue grew at a CAGR of 21%, reaching Rs 69,829 crore. Additionally, its Profit After Tax (PAT) saw an impressive CAGR of 45%, amounting to Rs 6,060 crore from FY22 to FY24, fueled by increased sales volume and enhanced operational efficiency.
LKP Securities has conducted an analysis of the stock and projects that it will trade at 26 times its FY24 earnings at the upper end of the price band. This valuation is deemed reasonable compared to its closest competitor, Maruti Suzuki, which trades at 29 times its FY24 earnings. Considering these factors, the firm recommends subscribing to the stock and positions it as a long-term investment for optimal returns.