Hyundai IPO Live Updates: Issue subscribed 18% on Day 1; check, GMP, price band, key dates and other details here

The issue, comprising an offer for sale (OFS) of 14.2 crore shares, will remain open until October 17, 2024.

The grey market premium (GMP) for Hyundai shares currently stands at ₹65, indicating a modest 3.3% premium over the IPO price. However, the GMP has been declining over the past few days, suggesting limited gains upon listing.

Retail investors have shown the highest interest, with a 26% subscription rate, while institutional investors have been slower to act. The employee quota has been subscribed 0.67 times so far. Analysts are cautiously optimistic, with many recommending a long-term investment strategy due to Hyundai’s strong market presence, robust R&D capabilities, and plans for expansion, including the launch of electric vehicles (EVs) in India by 2026.

Key details of the IPO include a face value of ₹10 per share, a minimum bid lot of 7 shares, and an employee discount of ₹186 per share. Despite lukewarm Day 1 results, Hyundai’s position as the second-largest passenger vehicle manufacturer in India, its diverse vehicle portfolio, and long-term growth prospects make it an attractive investment for those with a medium- to long-term outlook.

The company, which has been operating in India since 1996, is targeting a production of 1 million units annually, supported by the acquisition of a former General Motors plant in Maharashtra. Hyundai’s strong focus on the growing SUV segment and its plans for electric vehicle expansion are expected to drive long-term growth.

Hyundai IPO Live Updates: Issue subscribed 18% on Day 1; check, GMP, price band, key dates and other details here
– Amnish Aggarwal, Head-Research, Prabhudas Lilladher16-20 minutes
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15 Oct 2024 | 05:31:46 PM IST

Synopsis

Hyundai Motor India Limited IPO GMP Live: The ₹27,870 crore initial public offering (IPO) of Hyundai India opened for subscription today and will remain available for investors until October 17. This issue consists entirely of an offer for sale (OFS) of 14.2 crore shares, which will be sold by the parent, Hyundai Motor Global. In the unlisted market, the shares were priced at ₹65 before the IPO opened, indicating a small premium of 3.3% over the IPO price. However, the grey market premium (GMP) has been steadily falling since the announcement of the issue.

Hyundai Motors IPO: Key Highlights

Issue Details: Offer for Sale of 142,194,000 Equity Shares
IPO Dates: Oct 15 to 17
Issue size: ₹ 26,505 – 27,856 Cr
Face value: ₹ 10/-
Employee Reservation: Upto 778,400 Shares
Price band: ₹ 1,865 – 1,960
Bid Lot: 7 Shares and in multiple thereof
Employee Discount: ₹ 186/- per share

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Hyundai India IPO subscribed 18% on Day 1. GMP at 3.3%. Check details
Hyundai India’s IPO saw a lukewarm response on its first day, with an overall subscription rate of just 18%. Retail investors showed the most interest at 26%, while institutional investors lagged significantly. This weak demand could signal concerns about the IPO’s pricing.

Hyundai India IPO subscribed 18% on Day 1. GMP at 3.3%. Check details

Hyundai Motor India’s position as one of the top automotive manufacturers in India is backed by following key strengths
Strong production and export capabilities
Diverse vehicle portfolio
Robust R&D and local customisation
Hyundai IPO is the second largest PV maker in India. If you look at the scale, Rs 60,000 to 70,000 crore of top line, margin ahead of Maruti, return ratios are also quite strong for them. So, to some extent, the company looks good. The only thing is that this year, there is a 1% increase in royalty, that is one.
A closer look at Hyundai Motor India
Hyundai Motor India is a wholly-owned subsidiary of Hyundai Motor Company, Korea
Since its establishment in 1996, Hyundai has emerged as a leading automotive manufacturer in India
It is recognized for producing popular vehicles like the i20, Creta, and Venue
The company has steadily increased its market share in the country
Hyundai expands in India, targets 1 million units
Hyundai aims to reach production of about 1 million units a year with the acquisition of a former General Motors plant in western Maharashtra state. The plant is expected to start operations only by the second half of the year to March 2026.

Hyundai expands in India, targets 1 million units

Here’s an overview of Hyundai’s India operations
Hyundai has 1,377 dealers across India
In India, the carmaker sells 13 models, with the ‘Creta’ and ‘Venue’ sport utility vehicles as well as the ‘Grand i10 Nios’ hatchback among its top-selling models
Hyundai’s current factory is also a key export hub, which manufactures cars that are shipped to South Africa, the Middle East as well as Latin America
Hyundai Motor IPO Live Updates: Facts about Hyundai’s India operations
Hyundai set up its India operations in 1996, starting off with the Santro hatchback, once its most sold car.
Hyundai has one factory outside of Chennai in southern Tamil Nadu state, also dubbed the Detroit of Asia.
The factory has a capacity of 824,000 units per year and is running at a utilisation rate of 94%, leaving little room for growth that would help compete with Maruti Suzuki. (Reuters)
Hyundai Motor IPO Live Updates: Facts about Hyundai’s India operations

Hyundai Motor IPO Live Updates: In addition to expanding its SUV lineup, Hyundai Motor, plans to launch its 1st India-made electric vehicle early next year
The company also intends to introduce at least two gasoline-powered models specifically designed for the Indian market starting in 2026.

The company’s plans for a 250,000 vehicle expansion by December 2025 show that there is apparent money in the long term for anchor investors. This, along with prospective market share improvement provides a runway of growth for the company
– Arun Kejriwal, founder, Kejriwal Research

Hyundai Motor IPO Live Updates: Consumer Preferences
With a strong focus on SUVs, the company aims to leverage the growing consumer preference for larger, safer vehicles, according to analysts at IDBI Capital. They believe this strategy will enable Hyundai India to increase its market share and outperform industry growth.
Analysts noted that anchor investors could expect long-term value as Hyundai Motor continues to expand and solidify its presence in the Indian market. (Reuters)

Hyundai Motor IPO Live Updates | Can Hyundai outpace Maruti in the long run? Shashank Kanodia answers
“Margin profile with 25% really have much of a choice, because if you consider maybe Tata Motors, M&M, and Maruti, so Tata Motors has a JLR as a leg, which is the largest of the pie and for M&M, it is largely the tractors and the parts which comes into play. So, we really do not have much of a choice when Hyundai is kind of a direct comparison to Maruti,” says Shashank Kanodia, ICICI Securities.

Hyundai Motor IPO Live Updates | Can Hyundai outpace Maruti in the long run? Shashank Kanodia answers

Hyundai Motor IPO Live Updates: Hyundai’s product line-up
Hyundai’s portfolio of 13 passenger vehicle models (including N Line models which are passenger vehicle models that feature sporty performance features) across major passenger vehicle segments by body type include sedans (Aura and Verna), hatchbacks (Grand i10 NIOS, i20 and i20 N Line) and SUVs (Exter, Venue, Venue N Line, Creta, Creta N Line, Alcazar, Tucson and IONIQ 5).

Hyundai Motor IPO Live Updates: Hyundai’s product line-up

Hyundai Motor IPO Live Updates | Subscription Status
Total: 0.15 times
Employee Reserved: 0.67 times
Retail Individual Investors (RIIs): 0.23 times
Non-Institutional Investors(NIIS): 0.10 times
Qualified Institutional Buyers (QIBs): 0.01 times
Hyundai Motor IPO Live Updates | Go medium-to-long-term to make money from Hyundai IPO: Amnish Aggarwal
Amnish Aggarwal, Head of Research at Prabhudas Lilladher, believes that investors with a medium- to long-term perspective are likely to see profits. However, he cautions that predicting potential listing gains at this stage is quite challenging.

At the upper price band of Rs 1,960, the issue is priced at 26.3x FY24 P/E, offering a reasonable valuation compared to Maruti’s 29.8x. The company is well-positioned to benefit from PV segment growth, driven by its strong SUV presence and upcoming EV launches. It allocated Rs 32,000 crore in capex for EV development and manufacturing capacity expansion over FY23-32.
– Motilal Oswal

Hyundai Motor IPO Live Updates | Hyundai India GMP: All signs point to debut losses for investors
The Hyundai IPO has opened for subscription, but investors should prepare for potential losses on debut, according to grey market trends. The grey market premium (GMP) has been steadily declining and is currently at just 1.6% above the issue price. Given the sharp drop in recent days, it wouldn’t be surprising if the GMP turns negative before the listing.

We assign SUBSCRIBE rating on HMIL given steady growth prospects amid industry tailwinds, robust financials & healthy SUV product slate. We expect limited listing gains to this IPO, however expect HMIL to deliver healthy double-digit portfolio returns over medium to long term.
– ICICI Direct Research

Hyundai Motor IPO Live Updates | Subscription Status: Applied 11% so far
Total: 0.11 times
Employee Reserved: 0.52 times
Retail Individual Investors (RIIs): 0.19 times
Non-Institutional Investors(NIIS): 0.08 times
Qualified Institutional Buyers (QIBs): 0.00
Hyundai Motor IPO Live Updates | Company’s reveue and EBITDA growth in last 2 years
Hyundai Motor IPO Live Updates | Company’s reveue and EBITDA growth in last 2 years

Hyundai kicks off season 1 of K-drama. Will Indian IPOs help Koreans ward off K-discount curse?
If successful, Hyundai India’s ₹27,856 crore IPO could mark the start of a new trend on Dalal Street, potentially encouraging other South Korean chaebols, like LG, to explore the growing Indian markets as they cope with the K-discount phenomenon at home.

Hyundai Motor IPO Live Updates | Here’s how the company stacks up against its listed peers
(Source: Axis Capital)

Hyundai Motor IPO Live Updates | Here’s how the company stacks up against its listed peers

Hyundai Motor IPO Live Updates | Here are some key dates to keep an eye on
The IPO opened today and will close on October 17, 2024.

(Source: Axis Capital)

Hyundai Motor IPO Live Updates | Here are some key dates to keep an eye on

Hyundai Motor IPO Live Updates | Planning to bid for issue? Top risks and rewards to consider

Hyundai Motor IPO Live Updates | Isuue breakup, shareholding pattern, other details
Source: Arihant Capital Markets

Hyundai Motor IPO Live Updates | Isuue breakup, shareholding pattern, other details

Hyundai Motor IPO Live Updates | Issue subscribed 8% so far on Day 1. GMP at 3.3%
The Rs 27,870 crore initial public offer (IPO) of Hyundai India, which opened for subscription earlier today, has been subscribed by 8% in the initial hours of the bidding process.

Around 11:20 am, the highest demand was driven by the retail investors, subscribing to the issue by 13%, followed by the non-institutional investors, who booked the issue by 6% so far. The portion reserved for the qualified institutional buyers (QIBs) attracted merely 252 bids against 2,82,83,260 shares reserved for them.

Hyundai has ensured to maintain 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. Hyundai also plans to gradually become a major player in the EV segment. Company has also recorded one of the highest RoNW among its peers. We believe the company can take advantage of the growing PV market in India with its diverse offerings. At the upper price band of INR 1960, the issue is priced at a P/E of 26.3x post-issue based on the FY24 EPS of INR 74.58. We have a“Subscribe for long term” rating for the issue.
– Arihant Capital Markets

Hyundai Motor IPO Live Updates | Subscription status: Issue applied 6% in 1 hour
Total: 0.06 times
Employee Reserved: 0.20 times
Retail Individual Investors (RIIs): 0.10 times
Non-Institutional Investors(NIIS): 0.05 times
Qualified Institutional Buyers (QIBs): 0
Hyundai Motor IPO Live Updates | How it’s valuation stacks against rivals Maruti Suzuki, M&M and Tata Motors
Hyundai Motors IPO: India’s second-largest passenger car manufacturer by market share, Hyundai Motor India (HMI), is set to launch its ₹27,870 crore initial public offering (IPO) on Tuesday.

The stock is anticipated to trade at nearly 26x FY2024 earnings at the upper end of the price band upon listing.

Here’s how it compares to leading peers like Maruti Suzuki India (MSIL), Mahindra & Mahindra (M&M), and Tata Motors.

Hyundai Motor IPO Live Updates | How it’s valuation stacks against rivals Maruti Suzuki, M&M and Tata Motors

Hyundai has consistently grown stronger and has been one of the most recognised brands in India since its inception and has been the first- mover in various PV categories. We believe that the outlook for Hyundai continues to be strong owing to its strong parentage and leveraging HMC’s technology and R&D capabilities and strong balance sheet. However, at the upper price band, Hyundai is available at a rich valuation of 26x its FY24 EPS, leaving little on the table for investors. We have a SUBSCRIBE recommendation to this issue for a long term
– Aditya Birla Money

We believe that the issue is fully priced and recommend ‘Subscribe – Long Term’ rating to the IPO.
– Anand Rathi Research

Hyundai Motor IPO Live Updates | Company’s key financials
Source: Anand Rathi Research

Hyundai Motor IPO Live Updates | Company’s key financials

We recommend subscribing to the IPO with a long-term investment horizon. The pricing appears attractive for those considering a 3-5-year play.
– Krishna Appala, Senior Research Analyst, Capitalmind Research

Hyundai Motor IPO Live Updates | Key details
Hyundai Motor IPO Live Updates | Key details

Hyundai Motor IPO Live Updates | IPO opens for subscription
The ₹27,870 crore initial public offering (IPO) of Hyundai India opened for subscription today and will remain available for investors until October 17.

This issue consists entirely of an offer for sale (OFS) of 14.2 crore shares, which will be sold by the company’s parent, Hyundai Motor Global.

Hyundai Motor IPO Live Updates | IPO opens for subscription

Hyundai Motor IPO Live Updates | Key business details
Incorporated in 1996, Hyundai Motor India (HMI) is a comprehensive manufacturer of passenger vehicles, including hatchbacks, sedans, and SUVs, across various powertrains. The company operates a fully functional plant in Chennai with a capacity of 824,000 units and is currently establishing another plant in Talegaon, Maharashtra.

Once fully operational, this new facility will increase the total capacity to 1,074,000 units over the next three to four years. In FY24, HMI’s passenger vehicle sales rose by 8% year-on-year to 777,876 units. Of these, ICE and CNG powertrains accounted for 89.2% and 10.6%, respectively, while EVs made up 0.2%. HMI held a market share of 12.3% in hatchbacks, 20% in sedans, and 18.4% in SUVs during FY24.

Hyundai Motor IPO Live Updates | IPO Analysis: Valuation Watch
Hyundai Motors IPO: Hyundai Motor India is seeking an FY24 price-earnings (P/E) multiple of up to 26.7, while Maruti Suzuki is trading at a P/E multiple of 29.8.

Hyundai Motor IPO Live Updates | IPO Analysis: Key risks
Hyundai Motors IPO: Due to intense competition, the company’s PV market share has gradually declined to 14.6% in FY24, down from 17.6% in FY20. This trend may compel HMI to provide higher customer discounts in the future to maintain its market share, which could impact profitability.

Hyundai Motor IPO Live Updates: How financials stack up
Revenue rose by 21.4% annually from FY22 to FY24, reaching Rs 69,829 crore, while net profit increased by 44.5% to Rs 6,060 crore. The operating margin before depreciation and amortization (EBITDA margin) improved from 11.6% to 13.1% during this period. Similarly, peer Maruti saw its EBITDA margin grow from 6.4% to 13.1%.

Hyundai Motor IPO Live Updates: How financials stack up

Hyundai Motor IPO Live Updates | Hyundai Motor raises Rs 8,315 crore from anchor investors
Hyundai Motors IPO: Co secured ₹8,315.27 crore from 225 anchor investors on Monday ahead of its IPO launch. The company allocated 42.4 million shares at the upper price band of ₹1,960 to these investors.

We assign a subscribe rating to Hyundai due to steady growth prospects, robust financials, and a strong SUV lineup. While we anticipate limited listing gains, we expect the company to deliver healthy double-digit returns over the medium to long term.
– ICICI Direct on Hyundai IPO

Hyundai Motor IPO Live Updates: Hyundai may take a while to scorch D-Street
Investors planning to participate in Hyundai Motor India’s massive initial public offering (IPO) – set to be the largest in the country’s history – should be prepared to hold the stock for at least a year to achieve substantial returns. Analysts do not anticipate a dramatic surge on listing day for the nation’s second-largest automaker, as grey market trends suggest a more modest debut.

Hyundai IPO Live Updates: Hyundai India raises Rs 8,315 crore from anchor investors ahead of IPO opening
Hyundai Motor India has raised Rs 8,315 crore from 225 anchor investors ahead of its much-anticipated IPO, which opens on Tuesday. The shares were allocated at Rs 1,960 per share, the upper limit of the price band. In the anchor book, 21 domestic mutual funds participated through a total of 83 schemes to subscribe to the shares.

Hyundai IPO Live Updates: Hyundai Motor IPO | Premium pricing leaves little room for listing gains in India’s largest offering
The much-anticipated IPO of Hyundai Motor India is set to open on October 15, but for investors considering short-term bets, there are questions about whether the current pricing offers potential for listing gains.

Hyundai IPO Live Updates: Hyundai India GMP down to just 3% over issue price as IPO opens today
The IPO of Hyundai Motor India will open for subscription today, with investors able to bid until October 17. In the unlisted market, the company’s shares are currently trading at a grey market premium (GMP) of Rs 60. Based on the upper price band of Rs 1,960, this represents a modest 3% premium over the issue price, a sharp decline from the Rs 570 premium seen two weeks ago when the shares first started trading in the unlisted market.

Hyundai IPO Live Updates: Hyundai India IPO could trigger a sector-wide positive re-rating for auto stocks
The highly anticipated IPO of Hyundai Motor India, set to be the largest public offering in the country, is expected to draw substantial global interest and a potential surge in foreign capital. Analysts suggest that this could lead to a sector-wide re-rating for the Indian auto industry, reflecting increased investor confidence and valuation adjustments across the sector.

Hyundai IPO Live Updates: Hyundai IPO opens tomorrow: Can investors ignore these two red flags?
Hyundai Motor India Ltd (HMIL) is set to launch India’s largest initial public offering (IPO) on Tuesday, October 15, with a mix of excitement and caution among investors. Hyundai seeks to capitalize on India’s strong market, where nearly 260 companies have collectively raised over $9 billion in 2024. The IPO, involving a full offer for sale (OFS) of 14.2 crore shares by the Korean parent company, is priced between Rs 1,865 and Rs 1,960 per share, positioning Hyundai as India’s second-largest automaker after Maruti Suzuki.