Hyundai Motor India IPO Day 3: Final Chance to Subscribe as Issue Sees 42% Subscription, Latest GMP & Review Inside

The much-anticipated Hyundai Motor India IPO, which opened for subscription on Tuesday, October 15, 2024, is seeing moderate interest from investors. The IPO’s price range is set between ₹1,865 to ₹1,960 per share, and today, Thursday, October 17, is the last day for investors to bid. As of Wednesday, the second day, the IPO had been subscribed 42% overall, with retail investors subscribing to 38% of the available shares.

Subscription Details

By the end of Day 2, the IPO received bids for 4,17,33,328 shares against 9,97,69,810 shares on offer. The segment for qualified institutional buyers (QIBs) was subscribed at 58%, while non-institutional investors (NIIs) subscribed at 26%. Retail investors subscribed to 38% of their portion, and the employee segment was fully subscribed at 1.31 times.

On the first day, overall subscription was at 18%, with the retail segment at 26%, NIIs at 13%, and QIBs at just 5%.

Grey Market Premium (GMP)

As of today, Hyundai Motor India shares are trading at a premium of ₹17 in the grey market. This suggests the stock might debut at ₹1,977, a modest 0.87% premium over the issue price. The GMP has fallen significantly from its earlier high of ₹570.

Should You Invest?

Experts generally have a positive long-term outlook on Hyundai Motor India’s IPO. Master Capital Service expects the domestic passenger vehicle (PV) industry to grow at an annual rate of 4.5-6.5%, depending on India’s GDP growth. They highlight Hyundai’s strong market position and its plans to expand its vehicle portfolio, including a focus on electric vehicles (EVs). They recommend long-term investment in the IPO.

Aditya Birla Capital also supports long-term investment, citing Hyundai’s strong parent company, its advanced technology, and a solid balance sheet. However, they note that the valuation is high, with the IPO priced at 26 times its expected earnings for FY24.

Marwadi Shares and Finance also gave a positive recommendation, highlighting that Hyundai is the second-largest car manufacturer in India and a top vehicle exporter. Despite being priced at a P/E ratio of 26, they believe the IPO is reasonably valued compared to competitors like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra. They encourage long-term investment due to Hyundai’s strong market presence.