Hyundai Motor India IPO: Key Details You Need to Know Before Applying Next Week

Hyundai Motor India Limited is set to launch its Initial Public Offering (IPO) next week, opening for bids from October 15 to October 17, 2024. This IPO is significant as it marks the entry of India’s second-largest Original Equipment Manufacturer (OEM) in the market. The company has priced its shares between ₹1865 and ₹1960 per equity share and aims to raise ₹27,870.16 crore through a 100% Offer for Sale (OFS). The shares will be listed on the BSE and NSE, and currently, they are trading at a ₹74 premium in the grey market.

Key Details about the Hyundai Motor India IPO

1. GMP: Shares are available at a ₹74 premium in the grey market today.
2. Price Range: The share price is set between ₹1865 and ₹1960 per equity share.
3. IPO Dates: The public issue will be open from October 15 to October 17, 2024.
4. IPO Size: The company aims to raise ₹27,870.16 crore, entirely through an Offer for Sale.
5. Lot Size: Bidders can apply for the IPO in lots, with one lot comprising 7 shares.
6. Allotment Date: Shares are expected to be allocated on October 18, 2024 (next Friday).
7. Registrar: KFin Technologies has been appointed as the official registrar.
8. Lead Managers: The lead managers for the offer include Kotak Mahindra Capital, Citigroup, HSBC Securities, J.P. Morgan, and Morgan Stanley.
9. Listing Date: The shares are expected to be listed on October 22, 2024, following the ‘T+3’ listing rule.

Should You Apply for the Hyundai Motor India IPO?

When considering whether to apply for the IPO, experts offer insights. Prashanth Tapse, Senior VP of Research at Mehta Equities, highlights that there is a shift in consumer preferences in the Indian auto industry, moving from the ₹5-7 lakh segment to the ₹10-12 lakh segment. He notes that Hyundai, along with TATA Motors and M&M, is better positioned to capitalize on this market growth compared to Maruti, which has faced increasing competition and a decline in market share.

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Anand Rathi has given the IPO a ‘buy’ rating, stating, “At the upper price band, the valuation is at 26.2x FY24 earnings and 26.7x if annualized for FY25. The market capitalization post-IPO will be ₹15,92,581 million, with a market cap-to-sales ratio of 2.28 based on FY24 earnings. We recommend a ‘Subscribe – Long Term’ rating for this IPO.”

Similarly, Arihant Capital Markets, Bajaj Capital, and ICICI Direct have also assigned a ‘subscribe’ recommendation to the upcoming IPO.