Hyundai Motor India IPO: Opening Date, Price, Recommendations, GMP, All You Need to Know

Hyundai Motor India IPO: Hyundai Motor India Ltd, the Indian arm of South Korean car manufacturer Hyundai, is mosting likely to release its going public (IPO) on October 15. It will certainly be ended on October 17. The concern will certainly be opened up for support capitalists on October 14. The cost band of the much-awaited 28,000-crore preliminary share-sale has actually been taken care of at Rs 1,865-1,960 per share.

This IPO marks a considerable landmark for the Indian car market, as it is the very first car manufacturer’s preliminary share sale in over twenty years, complying with Japanese car manufacturer Maruti Suzuki’s listing in 2003.

Hyundai Motor India IPO: Opening Date & & Price

The IPO will certainly be opened up for public registration on October 15 and shut on October 17. The IPO will certainly be opened up for support capitalists on October 14.

The cost band of the IPO has actually been taken care of in the series of Rs 1,865 to Rs 1,960 per share.

Hyundai Motor India IPO: What Analysts Say

Brokerage company Master Capital Services Ltd in its note stated, “Hyundai Motor is the second largest carmaker in India after Maruti Suzuki India. In comparison to Maruti Suzuki, Tata Motors, and other competitors, Hyundai Motor India is thought to be stronger as a result of the listing since it may make financing in the future simpler even though the company is not going to utilize the IPO proceeds directly for the company. The business’s stated RoNW for FY23 was 23.48%, the highest among its peers. This indicates that the company is making good use of the money provided by shareholders to create profits.”

From Fiscal 2019 to 2023, the PV market saw solid development, with a healthy and balanced 11% CAGR in market worth driven by an 8% CAGR in typical lorry costs and a 3% CAGR in complete sales quantities and Hyundai is well placed to make use of this development because of their varied offerings within the market as contrasted to its peers which display diverse monetary metrics, highlighting varied market toughness, it included.

“Hyundai’s IPO offers potential value growth by expanding investment prospects in the underdeveloped Indian auto market,” Master Capital Services specified.

Hyundai Motor India IPO Size

The Hyundai Motor India IPO, which is valued at around Rs 27,870 crore, will certainly be the biggest in India considering that the Rs 21,000 crore IPO of Life Insurance Corporation of India (LIC).

Hyundai Motor India’s recommended Rs 28,000-crore IPO is totally an offer-for-sale (OFS) of 142,194,700 equity shares of the stated value of Rs 10 each by marketer Hyundai Motor Company, without fresh concern part, according to the draft red herring syllabus (DRHP) submitted in June.

Hyundai Motor India IPO: GMP Today

According to market onlookers, unpublished shares of Hyundai Motor India Ltd are trading Rs 115 greater in the grey market than its concern cost. The Rs 115 grey market costs or GMP suggests the grey market is anticipating a 5.87 percent listing gain from the general public concern. The GMP is based upon market beliefs and maintains altering.

‘Grey market premium’ shows capitalists’ preparedness to pay greater than the concern cost.

Hyundai Motor India IPO: Minimum Investment

The minimal financial investment called for by retail capitalists to bid for one great deal of Hyundai Motor IPO is Rs 13,720. The minimal great deal dimension financial investment for tiny NII is 15 great deals or 105 shares, accumulating as much as Rs 205,800, and for huge NII, it is 73 great deals or 511 shares, accumulating as much as Rs 1,001,560.

Hyundai Motor India IPO: A Complete Offer for Sale

The Hyundai Motor India IPO is entirely a market (OFS). It suggests the existing marketers are unloading their equity on the market, and no fresh equity will certainly be drifted.

The South Korean moms and dad is thinning down a few of the risk via the OFS course. Since the general public concern is entirely an OFS, Hyundai Motor India Ltd, which is the 2nd biggest carmaker in India after Maruti Suzuki India, will certainly not obtain any kind of profits from the IPO.

The car manufacturer got authorization from the Securities and Exchange Board of India (Sebi) on September 24 to drift its IPO.

In its draft documents, Hyundai Motor India specified that it anticipates that the listing of the equity shares “will enhance our visibility and brand image and provide liquidity and a public market for the shares”.

Hyundai Motor India IPO: More Details

Hyundai Motor India began procedures in India in 1996 and presently offers 13 designs throughout sections.

In its draft documents, Hyundai Motor India stated, “Further, our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India.”

Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital and Morgan Stanley are the financial investment financial institutions encouraging on the deal and law practice Shardul Amarchand Mangaldas is the firm guidance. Cyril Amarchand Mangaldas is the financial institutions’ guidance and Latham and Watkins is working as the worldwide guidance.