Hyundai IPO GMP Allotment status Highlights: Latest information on GMP, allotment, listing, and price band

The tentative schedule for Hyundai Motor India is from 15 October to 22 October 2024. The IPO opens on October 15, 2024 and closing date is October 17, 2024. The cut off time for UPI mandate confirmation is 5 PM on October 17, 2024. The Basis of Allotment is scheduled on October 18, 2024. The initiation of Refunds and credit of shares to Demat on October 21, 2024. The listing date of the IPO is October 22, 2024.

The Hyundai Motor India IPO ranged from Rs 1,865 and Rs 1,960 per share with the face value of Rs 10. The minimum lot size for investors to bid is 7 shares, which is a minimum requirement for Retail investors. The tentative schedule of the IPO is October 15 to October 17, 2024. The total number of shares, 812,541,100, will remain unchanged post-issue.

“Hyundai Motor India is one of the few OEMs in India that is powertrain agnostic in its stance and has capabilities globally across BEV, HEV, PHEV, CNG, and ethanol. It is among the few to offer almost all types of transmissions in India, be it Automated Manual transmission (AMT), automatic, Dual Clutch Transmission (DCT), intelligent variable transmission(iVT), and manual transmission,” said Elara Securities in an IPO note.

The registrar of the issue, Kfin Technologies, will be finalising the share allotment on October 18. The allotment status can be checked on the website of Kfin Technologies.

Retail investors didn’t show much interest in the IPO of Hyundai India, subscribing to the issue 0.5 times. The issue was driven by majorly qualitative institutional buyers, booking the issue almost 7 times. However, as of day 2, the QIB subscription stood at 0.58 times.

Automobile industry growth is weak in the medium-term retail growth for H1 FY25 stands at 1% YoY. Also, the falling market share as Hyundai Motor India has lost a 230 bps retail market share during FY22-25 YTD to 14.1% as per Vahan. The company has no major volumetric model launch in the next 6-12 months. The related party transactions like royalty rate rose (2.8% of sales in Q1FY25 from 2.2% in FY24) & spare parts revenue to get accounted out of the listed company. It gets accounted for in the group company Hyundai Mobis. Further, the presence of sister firm Kia India in competing segments.

The grey market premium (GMP) for Hyundai Motor India‘s unlisted shares has been steadily declining. Currently, the shares are trading at a premium of Rs 25 over the upper end of the IPO price of Rs 1,960, reflecting a GMP of 1.28%. This marks a significant drop from the Rs 147 premium recorded on October 9, when Hyundai Motor announced its price band, according to sources tracking grey market trends.

Kotak Mahindra Capital Company is serving as the lead book manager for the issue, alongside four other investment banking firms: Citigroup Global Markets India, HSBC Securities & Capital Markets, J.P. Morgan India, and Morgan Stanley India Company. Kfin Technologies has been appointed as the registrar for the issue.

Hyundai Motor India (HMIL) remains committed to investing in research and development while introducing new passenger vehicles to strengthen its market position and appeal to a broader customer base. The company aims to stay a key player in the Indian automobile market, offering vehicles across the spectrum from affordable to premium segments. According to an IPO note by Anand Rathi Research, HMIL follows a premiumization strategy, focusing on selling higher-end trims with a higher average selling price (ASP) for its passenger vehicles.

“The PV (passenger vehicle) industry is slightly in a slow lane currently, this may augur well for the company, as HMI is expanding its capacity by 30% in the next 2 to 3 years. With new model launches (4 in mid-term, including the new Creta EV), HMI should give a strong fight to its rivals. At the upper end of the price band, on FY 24 earnings, the stock should trade at 26x times which is a fair value as compared to its closest peer Maruti Suzuki (29x FY 24 earnings). Therefore, on all favourable parameters, we assign a Subscribe rating on the stock. We recommend investing in this stock over the long term for higher returns,” said LKP Securities in an IPO note.

Hyundai Motor India has transferred Rs 15,435.84 crore to its parent company in Seoul, South Korea. Earlier, in FY23, the company had also declared a dividend of nearly Rs 1,500 crore to Hyundai Motor Company (HMC). This has raised concerns among investors, particularly as the company posted a net profit of Rs 6,060.04 crore and revenue of Rs 69,829.05 crore for FY24. The dividend payout, amounting to 22% of the total revenue for the fiscal year, has sparked worries about Hyundai’s financial strategy.

The Hyundai Motor India IPO is set to be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Kotak Capital, Citigroup, HSBC Securities, JP Morgan India, and Morgan Stanley are acting as the Book Running Lead Managers (BRLMs), with KFin Technologies serving as the registrar. Prior to the IPO, Hyundai’s promoters held 100% of the company’s shares, which will reduce to 82.50% post-issue, with the public holding 17.50%.

Hyundai Motor India Ltd.’s initial public offering (IPO) began slowly, with just 18% subscription on Day 1 and 42% by the end of Day 2. However, demand surged on Day 3, driven by qualified institutional buyers, pushing the overall subscription rate to 237% by the close of the final day. The IPO, open from October 15 to 17, marked India‘s largest-ever primary market offering. Retail participation, however, was notably low, with only 0.50x subscription, compared to Life Insurance Corporation of India’s (LIC) 1.99x, and even higher rates for Coal India Limited and Reliance Power at 2.31x and 14.87x, respectively.

Hyundai India is expanding its production capacity in India with the acquisition of a plant in Talegaon, Maharashtra which is expected to commence operations in H2FY26. The company expects its overall annual capacity to increase from 824,000 units to 994,000 units by H2FY26 and to 10,74,000 units eventually. It has entered into MoUs with the Govt of Tamil Nadu for its Chennai Plant and with the Govt of Maharashtra for Talegaon Plant, which involves investment commitments aggregating to Rs 32,000 crore over FY23-32. The investment will be done to introduce new EV models, increase EV production capacity at the Chennai plant, set up a battery packing assembly unit and install charging stations along major highways and in key cities.

Hyundai India‘s EBITDA grew at a CAGR of 29% while EBITDA margins were steady in the range of 12- 13% over FY22-24, led by localisation, favourable mix and economies of scale.

Hyundai Motor India IPO allotment will be finalised on October 18. The allotment process is being handled by Kfin Technologies. The share allotment status can be checked on the website of the registrar of the issue.

Bajaj Broking has stated that if the FY25 annualized super earnings are attributed to the post-IPO fully diluted paid-up equity capital, the asking price reflects a price-to-earnings (P/E) ratio of 26.73. Based on FY24 earnings, the P/E ratio stands at 26.28. While the issue appears relatively fully priced, the brokerage emphasizes that the company is positioned for promising prospects following the completion of its ongoing expansions.

The Hyundai Motor India IPO is priced between Rs 1,865 and Rs 1,960 per share, with a face value of Rs 10. This gives the company an implied market capitalization of approximately Rs 1,592,580 million. Retail investors can place bids starting with a minimum lot size of 7 shares. The IPO will be open for subscription from October 15 to October 17, 2024. The total number of shares, 812,541,100, will remain unchanged post-issue.

Hyundai Motor India has reported consistent growth in both top-line and bottom-line. Its revenue grew at a CAGR of 21% to Rs 69,829 crore in FY24 and PAT grew at a CAGR of 45% to Rs 6,060 crore over FY22-24, led by better sales volume and operating efficiency.

“At the upper end of the price band, on FY 24 earnings, the stock should trade at 26x times which is a fair value as compared to its closest peer Maruti Suzuki (29x FY 24 earnings). Therefore, on all favourable parameters, we assign a Subscribe rating on the stock. We recommend investing in this stock over the long term for higher returns,” said LKP Securities in an IPO note.

Stocks of Hyundai Motor India are available at a discount to the issue price in the grey market. The company’s stocks are fetching a discount of 1.63% to the issue price.

The Nifty 50 opened 74 points or 0.30% lower at 24,676 while the BSE Sensex opened 259 points or 0.32% lower at 80,747

Waree Energies will be opening its issue on October 21 and closing it on October 23. The company aims to raise a sum of Rs 4,321.44 crore.

Investors participating in the Hyundai Motor India IPO can place bids starting with a minimum of 7 shares, with additional bids required in multiples of this amount. For retail investors, the minimum investment is 1 lot (7 shares), costing Rs 13,720, while the maximum investment is capped at 14 lots (98 shares) for Rs 1,92,080. Small High Net-Worth Individuals (S-HNI) can apply for a minimum of 15 lots (105 shares) at a cost of Rs 2,05,800, with a maximum investment of 72 lots (504 shares) totaling Rs 9,87,840. For Big High Net-Worth Individuals (B-HNI), the minimum investment is set at 73 lots (511 shares), amounting to Rs 10,01,560.

Hyundai Motor India, a subsidiary of the Hyundai Motor Group, is the third-largest auto original equipment manufacturer (OEM) in the world based on passenger vehicle sales in 2023. The company benefits from comprehensive support from Hyundai Motor Corporation (HMC) across various operational sectors. Since 2014, HMC has invested approximately Rs 1,875.03 billion in global research and development (R&D) through June 2024, emphasizing key emerging mobility areas, including electrification, shared mobility, and autonomous driving.

Hyundai Motor India Ltd.’s initial public offering (IPO) experienced a slow start, with just 18% subscription on Day 1 and 42% by the end of Day 2. However, on Day 3, qualified institutional buyers boosted the demand, leading to an overall subscription rate of 237% by the close of the final day. This IPO, which was open for subscription from October 15 to October 17, marked India‘s largest-ever primary market offering. Notably, retail participation was the lowest among recent large IPOs, with only 0.50x subscription. In comparison, Life Insurance Corporation of India (LIC) achieved a retail subscription rate of 1.99x, while Coal India Limited and Reliance Power saw even higher figures at 2.31x and an impressive 14.87x, respectively.

Hyundai Motor India‘s IPO, the largest-ever in the country, has been fully subscribed, setting the stage for the company’s listing next week. The Rs 27,870 crore IPO saw oversubscription by nearly 2.4 times by the close of bidding, despite cautious participation from retail investors. Strong demand from institutional buyers, particularly foreign investors, fueled the oversubscription, with this segment securing nearly 7 times their allotted shares, representing 28% of the total issue.

Hyundai Motor India has raised Rs 8,315.28 crore from anchor investors ahead of its IPO, with the anchor bid date set for October 14, 2024. A total of 42,424,890 shares were allotted to these investors. Half of the anchor shares will have a lock-in period expiring on November 17, 2024, while the remaining shares will be subject to a 90-day lock-in, ending on January 16, 2025.

Hyundai’s retail subscription rate of 0.5 times is notably the lowest among large Indian IPOs over Rs 10,000 crore in size. The last similar case was the GIC IPO in 2017, with a 0.63 times retail subscription. The sharp decline in Hyundai’s GMP, along with concerns over market share, valuation, and revenue allocation, were seen as contributing factors to the weak retail interest.

Brokerage firm ICICI Direct noted that while limited listing gains are expected for Hyundai‘s IPO, the company is still likely to deliver strong portfolio returns over the medium to long term. Hyundai set a price band of Rs 1,865-1,960 per share, with anchor investors snapping up 42.4 million shares at the higher end of the price band, raising Rs 8,315.3 crore in a pre-IPO round.