Hyundai Motor India Set to Launch Biggest IPO Yet: Key Details, Price Range, and Expert Insights

Hyundai Motor India is set to launch its initial public offering (IPO) on Tuesday, October 15, 2024. This is expected to be India’s largest IPO, aiming to raise around $3.3 billion (over ₹27,000 crore) through an offer for sale of shares. The price range for the IPO is between ₹1,865 and ₹1,960 per share, and it will be open for subscription until Thursday, October 17.

What’s in the IPO?

Hyundai Motor India wants to regain market share from its competitors by expanding its SUV lineup. They also plan to launch their first India-made electric vehicle (EV) early next year and introduce at least two gasoline models starting in 2026.

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Current Grey Market Premium (GMP)

As of now, the grey market premium (GMP) for the Hyundai Motor India IPO is ₹168. If you consider the upper price band of ₹1,960, this means the expected listing price for the shares could be around ₹2,128, which is about 8.6% higher than the issue price. However, the GMP has dropped from a previous high of ₹570.

Important Dates

• IPO Opens: October 15, 2024
• IPO Closes: October 17, 2024
• Share Allotment Date: October 18, 2024
• Shares Credited to Accounts: October 21, 2024
• Expected Listing Date: October 22, 2024

Experts’ Opinions

Experts are mixed about the IPO. Brokerage firm ICICI Direct recommends subscribing to it due to Hyundai’s steady growth, strong financials, and a good lineup of SUVs. However, they expect only limited gains when it lists. Hyundai Motor India is currently the second-largest player in the domestic market and a leading exporter.

However, some experts caution that the IPO comes at a challenging time for the automobile industry, which is facing a slowdown in demand and high inventory levels. Sharekhan by BNP Paribas notes that the Indian passenger vehicle market is dominated by a few players, with Maruti Suzuki leading and Hyundai in second place.

While Hyundai has a strong product lineup and brand reputation, some analysts believe the IPO price is high compared to its parent company. There are concerns about future growth, especially as some automobile companies have reduced their growth forecasts.

Despite these challenges, Hyundai is well-positioned in the ₹10-12 lakh segment of the market, benefiting from shifts in consumer preferences. Overall, while the Hyundai Motor India IPO has strong potential, investors should be aware of the market conditions and competitive landscape before making decisions.