Day 2 of the Hyundai Motor India IPO: GMP, Subscription, Review, and More
According to stock market analysts, the company's shares are presently trading at a premium of ₹65 in the grey market.
Hyundai IPO
Yesterday, Hyundai Motor India Limited's initial public offering (IPO) was launched on the Indian primary market. The public issue will remain open until October 17, 2024. Therefore, Hyundai Motor India's initial public offering (IPO) subscription will be available for bidding from Tuesday to Thursday of this week. Hyundai Motor India's initial public offering (IPO) pricing ranges from ₹1865 to ₹1960 per equity share. As the book build offering is entirely an offer for sale (OFS), the net proceeds of the public issue will not be recorded on the company's balance sheet. Hyundai Motor India intends to raise 27,870.16 crore through its initial public offering.
In the interim, Hyundai Motor India Limited's inventory is accessible on the grey market. According to stock market analysts, the company's shares are presently trading at a premium of ₹65 in the grey market.
Hyundai Motor India's Initial Public Offering (IPO) Subscription Status
The initial public offering of Hyundai Motor India has been subscribed to 21% on the second day of subscription today, at 10:30 IST, according to BSE data. The BSE reported that 2,07,73,928 shares were bid for in the inaugural share sale, while 9,97,69,810 shares were offered. Retail investors received 31% of the subscriptions, while non-institutional investors received 16%. The qualified institutional buyer (QIB) segment is reserved at 5%. The employee portion has been subscribed to by 99%.
The book-built issue was subscribed 0.18 times, the retail portion of the public issue was booked 0.26 times, and the NII portion was subscribed 0.13 times at the conclusion of day one of tendering. The QIB component has been subscribed to 0.05 times.
Important Information Regarding Hyundai Motor India's Initial Public Offering
1] Hyundai Motor India IPO GMP: The business's shares are presently trading at a premium of ₹65 in the grey market.
2] The price of Hyundai Motor India's initial public offering (IPO) is ₹1865 to ₹1960 per equity share.
3] Hyundai Motor India IPO date: The public offering commenced today and will remain open until Thursday. Bidding will commence at 10:00 a.m. today.
4] Hyundai Motor India intends to raise 27,870.16 crore through an offer for sale (OFS) in its initial public offering (IPO).
5] Lot size for Hyundai Motor India IPO: Bidders are permitted to submit applications for the public offering in lots, each of which constitutes seven company shares.
6. Hyundai Motor India IPO allotment date: The most probable date for share allocation is October 18, 2024, which falls on a Friday this week.
7] KFin Technologies has been designated as the official registrar for the book-build issuance of Hyundai Motor India's initial public offering.
8] 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 are the principal managers of the Hyundai Motor India IPO.
9] Hyundai Motor India IPO listing date: The book build issue is scheduled to be listed on the BSE and NSE on October 22, 2024, in accordance with the 'T+3' listing regulation.
10] Evaluation of Hyundai Motor India's Initial Public Offering: The public issue was rated 'subscribe' by Gaurav Garg, a research analyst at Lemonn Markets. Garg stated that Hyundai Motor India's imminent IPO is expected to be the largest in the country's history, providing investors with a distinctive opportunity to engage with India's second-largest car manufacturer. The brand has exhibited exceptional operational efficiency by procuring approximately 90% of its parts locally. This has significantly bolstered its financial performance, as evidenced by a 19.4% revenue compound annual growth rate (CAGR) from FY21 to FY24 and an exceptional return on capital employed (RoCE) of over 50% in FY24. However, Hyundai offers an alluring long-term investment opportunity despite the fact that the immediate listing gains are slight.
Master Capital has also assigned a 'buy' rating to the book build issue, with the statement that "The company intends to maintain its strong position by expanding its passenger vehicle portfolio by leveraging its deep understanding of consumer preferences and increasing its EV market share." Additionally, the organisation intends to maintain the premiumisation of its passenger vehicle portfolio while simultaneously emphasising the optimisation of capital allocation and the expansion of its manufacturing capacity. The IPO is priced appropriately, and investors who are interested in the company can make long-term investments.
Shivani Nyati, Head of Wealth at Swastika Investment, classified the public offer as "apply for long-term" and stated, "The IPO is fully priced; it may restrict the potential upside for investors." The IPO is an Offer for Sale (OFS), which implies that the corporation does not receive any proceeds. It may be challenging to achieve substantial listing advantages due to the IPO's size. Investors who are prepared to tolerate potential listing issues and possess a long-term perspective may wish to submit an application 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, and SMIFS have also designated the most anticipated public offering as "subscribe."
