The issue received nearly 1.98 crore consolidated share bids versus 9,97,69,810 shares available for subscription.
Retail investors led the way, subscribing to the issue by 29%, followed by the non-institutional investors, who booked the issue by 15% so far. The portion reserved for the qualified institutional buyers (QIBs) attracted merely 13.91 lakh bids or 5% against 2,82,83,260 shares reserved for them.
The issue is completely an offer for sale (OFS) of 14.2 crore shares, which will be offloaded by the company’s parent Hyundai Motor Global. Since the IPO is an OFS, all the proceeds will go to the selling shareholder.
Even though the entire proceeds from the IPO will go to the parent company, the management said funds will be used for research and development and new innovative offerings.
Hyundai IPO price band
The company has fixed a price band of Rs 1,865-1,960 per share, where investors can bid for 7 shares in one lot.
Hyundai IPO GMP
In the unlisted market, the company’s shares were trading at Rs 65 ahead of the issue opening, up from Rs 35-40 on Day 1. The GMP indicates a premium of 3.3% over the IPO price, up from 1.7% on Tuesday.
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Hyundai India IPO review
Most analysts advised investors to subscribe to the IPO for the long term, given that the company has strong brand presence in India and is well poised to capture growth opportunities in the passenger car market.
“We assign subscribe rating on Hyundai given steady growth prospects amid industry tailwinds, robust financials & healthy SUV product slate. We expect limited listing gains to this IPO, however expect the company to deliver healthy double-digit portfolio returns over the medium to long term,” said ICICI Direct.
“At the upper band, the company is valuing at 26.2x its FY24 earnings along with being valued at 26.7x if we annualize FY25 earnings. We believe that the issue is fully priced and recommend Subscribe – Long Term rating to the IPO,” said Anand Rathi.
Other details
Hyundai is the second largest carmaker in India with a portfolio of 13 passenger vehicle models across sedans, hatchbacks and SUVs. The company aims to leverage its strong local manufacturing capabilities to position itself as Hyundai Motor’s largest production base in Asia.
It operates two production facilities in Chennai with a combined installed capacity of 8.24 lakh units per annum and is currently running at over 90%+ capacity utilization.
For the quarter ending June 2024, Hyundai Motor India reported a revenue of Rs 17,344 crore, marking a growth from Rs 16,624 crore in the same period last year. Of the total revenue, 76% was derived from the domestic market, while exports accounted for 24%.
The company’s net profit for the quarter stood at Rs 1,489.65 crore, compared to Rs 1,329.19 crore in the previous year.
Kotak Mahindra Capital, Citigroup Global, HSBC Securities, JP Morgan, and Morgan Stanley are the book running lead managers to the issue, while KFin Technologies is the registrar to the offer.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)