The IPO was booked 2.3 times, with full subscription achieved only on the last day. The valuations are fully priced, and since the issue is a complete offer for sale (OFS), the company will not receive any proceeds from the offer.
“While Hyundai Motor India holds a strong market position as the second-largest passenger vehicle company in India, and its strategic focus on SUVs is promising, the overall market sentiment and IPO size may limit listing gains,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
“Hyundai Motor India, is the second-largest automobile manufacturer in India, holding a 15% market share. The company’s shares at pre-listing are trading at a GMP of just over 3% higher than its original price band,” said Master Capital Services.
While immediate listing gains may be modest, analysts say Hyundai’s robust fundamentals make it an attractive long-term investment.
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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. The automaker also plans to gradually become a major player in the EV segment.
The company’s leadership in India’s passenger vehicle market, along with its strategic focus on electric vehicles makes a case for long term potential.
“Investors with a long-term outlook and the ability to navigate potential listing challenges may consider holding onto their investments post-listing for potential future growth,” said Shivani Nyati.
“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,” said Master Capital Services.
The issue was completely an offer for sale (OFS) of 14.2 crore shares, 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.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)