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

The Hyundai Motor IPO is priced between Rs 1,865 and Rs 1,960 per share, with a face value of Rs 10. The implied market capitalization is around Rs 1,592,580 million. Retail investors can bid with a minimum lot size of 7 shares. The IPO opens on October 15, 2024, and closes on October 17, 2024. The total number of shares, 812,541,100, remains unchanged post-issue.

Kotak Mahindra Capital Company is the lead book manager of the issue along with four other investment banking firms: Citigroup Global Markets India, HSBC Securities & Capital Markets, J.P. Morgan India, and Morgan Stanley India Company. Kfin Technologies is working as the registrar for the issue.

Hyundai’s Rs 27,870 crore IPO is seen as offering limited valuation comfort compared to Maruti Suzuki, which holds nearly three times the passenger vehicle market share, two-and-a-half times the sales volume, and similar profitability. At Rs 1,960, the upper end of the price band, many analysts believe the pricing is steep and leaves no gains for investors.

“Hyundai’s emphasis on innovation, particularly in the EV sector, strategically places it to gain a larger market share and command higher prices. With the growing consumer preference for EVs, Hyundai’s cutting-edge and competitive models are likely to draw more buyers. The company’s robust brand image and loyal customer base, especially in the SUV and premium car markets, could further diminish Maruti’s market share and sales. Additionally, Hyundai’s strong reputation for quality and safety is a significant factor in attracting customers,” said Saji John, Senior Research Analyst at Geojit Financial Services.

The IPO will close on October 17. The issue has been subscribed 42% so far. The company has raised Rs 3,790.68 crore, excluding anchor placement of Rs 8,315.28 crore.

Hyundai Motor India’s IPO has raised 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 were offered to these investors. The lock-in period for 50% of the anchor shares will expire on November 17, 2024, while the remaining shares will be under a 90-day lock-in period, ending on January 16, 2025.

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%, a Return on Net Worth (RoNW) of 12.26%, and a Price-to-Book Value (P/BV) ratio of 14.93.

In the grey market, the premium 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, which translates to a grey market premium (GMP) of 1.28%. This GMP is notably lower than the Rs 147 recorded on October 9, when Hyundai Motor announced its price band, according to sources monitoring grey market activities.

Hyundai Motor India’s public issue has garnered a subscription of 42% so far, with bids received for 41.7 million shares out of the 99.8 million available. The retail investor portion is currently subscribed at 38%, while the non-institutional investors (NIIs) segment has seen a subscription rate of 26%.