Hyundai Motor India IPO day 2: GMP, subscription status, review, other details. Apply or not?

Hyundai Motor India IPO: The initial public offering (IPO) of Hyundai Motor India Limited has hit the Indian primary market yesterday. The public issue will remain open until 17th October 2024. So, Hyundai Motor India IPO subscription will remain open for bidding from Tuesday to Thursday this week. The auto OEM company has fixed the Hyundai Motor India IPO price band at ₹1865 to ₹1960 per equity share. The book build issue is entirely an offer for sale (OFS), which means net proceeds of the public issue will not come into the company's balance sheet. The auto company aims to raise ₹27,870.16 crore from Hyundai Motor India IPO.

Meanwhile, Hyundai Motor India Limited shares are available in the grey market. According to stock market observers, shares of the company are available at a premium of ₹65 in the grey market today.

Hyundai Motor India IPO subscription status

The initial public offer of Hyundai Motor India IPO has been subscribed 42% on the second day of subscription today, as per BSE data.

The initial share sale received bid for 4,17,33,328 shares against 9,97,69,810 shares on offer, according to BSE.

The portion for retail investors received 38% subscription while the quota for non-institutional investors got subscribed 26%. The qualified institutional buyers (QIBs) part is booked 58%. The employee portion has been subscribed 1.30 times.

At the end of the day one of bidding, the book built issue had been subscribed 0.18 times, the retail portion of the public issue had been booked 0.26 times, and the NII portion had been subscribed 0.13 times. The QIB portion has been subscribed 0.05 times.

Important Hyundai Motor India IPO details

1] Hyundai Motor India IPO GMP: According to stock market observers, shares of the company are available at a premium of ₹65 in the grey market today.

2] Hyundai Motor India IPO price: The auto company has a fixed price band for the public issue, at ₹1865 to ₹1960 per equity share.

3] Hyundai Motor India IPO date: The public issue has opened today and will remain open until Thursday. Bidding will begin today at 10:00 AM.

4] Hyundai Motor India IPO size: The auto company aims to raise ₹27,870.16 crore from this public issue, ultimately Offer for Sale (OFS).

5] Hyundai Motor India IPO lot size: A bidder can apply for the public issue in lots, and one lot of the public offer comprises seven company shares.

6] Hyundai Motor India IPO allotment date: The most likely date for share allocation is 18th October 2024, i.e., Friday this week.

7] Hyundai Motor India IPO registrar: KFin Technologies has been appointed official registrar of the book build issue.

8] Hyundai Motor India IPO lead managers: Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities & Capital Markets Pvt Ltd, J.P. Morgan India Private Limited, and Morgan Stanley India Company Pvt Ltd have been appointed lead managers of the public offer.

9] Hyundai Motor India IPO listing date: The book build issue is expected to be listed on BSE and NSE on 22nd October 2024, by the 'T+3' listing rule.

Hyundai Motor India IPO: Apply or not?

10] Hyundai Motor India IPO review: Giving a 'subscribe' tag to the public issue, Gaurav Garg, Research analyst at Lemonn Markets, said, "Hyundai Motor India's upcoming IPO is set to be the largest in the country's history, offering investors a unique opportunity to engage with the second-largest car manufacturer in India. The brand has showcased remarkable operational efficiency, sourcing about 90% of its parts locally. This has significantly contributed to its robust financial performance, highlighted by a revenue CAGR of 19.4% over FY21-24 and an impressive return on capital employed (RoCE) exceeding 50% in FY24. With strong financials and a diverse product lineup, Hyundai presents an attractive long-term investment opportunity, even if initial listing gains may be modest."

Master Capital has also assigned a 'buy' tag to the book build issue, saying, "The company plans on maintaining its strong position by expanding its passenger vehicle portfolio by leveraging its deep understanding of consumer preferences and increasing its EV market share. The company also intends to continue premiumization of its passenger vehicle portfolio and focus on calibrated manufacturing capacity expansion and efficient capital allocation. The issue is fully priced, and Investors interested in the company can invest in the IPO for the long term."

Assigning the 'apply for long-term' tag to the public offer, Shivani Nyati, Head of Wealth at Swastika Investment, said, "The IPO is fully priced; it could limit the potential upside for investors. The IPO is an Offer for Sale (OFS), so the company receives no proceeds. Given the significant size of the IPO, it may not be easy to achieve substantial listing gains. Investors with a long-term perspective and a willingness to accept potential listing challenges may consider applying for the HMIL IPO."

Aditya Birla, Anand Rathi, Arihant Capital Markets, Bajaj Capital, Canara Bank Securities, Cholamandalam Securities, ICICI Direct, IDBI Capital, KR Choksey Securities, Marwadi Shares and Finance, SBI Capital Securities, SMIFS have also assigned a 'subscribe' tag to the most awaited public issue.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.