Oct 15, 2024 09:03 AM IST
Hyundai Motor IPO allotment is expected on October 18, with a tentative stock listing on BSE and NSE set for October 22.
The initial public offering (IPO) of Hyundai Motor India (HMI), the second-largest passenger vehicle (PV) manufacturer in the country, is set to open today. The issue comes at a time when Hyundai has planned several new model launches in the coming quarters, spanning both internal combustion engine (ICE) and electric vehicle (EV) platforms as the company focuses on future growth. This also marks a significant milestone for Hyundai which is the first automaker to go public in India since Maruti Suzuki’s listing in 2003.
Hyundai IPO price band
The Hyundai IPO is priced between ₹1,865 and ₹1,960 per share and the company is expected to raise ₹27,856 crore through an offer for sale of 14.2 crore shares, representing a 17.5% stake.
The IPO is a complete Offer For Sale (OFS) where the company’s South Korean parent will be selling 14.2 crore shares or 17.5% of the total equity. Investors can bid for one lot of seven shares, followed by multiples of seven shares.
Should you invest in Hyundai IPO?
Analysts at multiple brokerage houses have tagged ‘Subscribe’ rating to the issue, saying that Hyundai Motor India’s IPO could be a strong long-term investment. IIFL Securities said that the company’s valuations are attractive, relative to other listed OEMs in India. The brokerage firm said, “Hyundai has several facets of operational superiority compared to its peers, but believes that the MPV segment is a portfolio gap, which may be addressed soon. However, a potential weakness in the PV industry in FY25 is a major concern.”
ICICI Securities assigned a ‘Subscribe’ rating to the IPO, given the steady growth prospects amid industry tailwinds and strong financials. It said, “We expect limited listing gains to this IPO, however expect HMIL to deliver healthy double-digit portfolio returns over medium to long term.”
SBI Securities tagged ‘Subscribe for Long Term’ rating for the issue saying, “The capacity expansion at Talegaon will help HMIL in ramping up both domestic and export volumes. At the upper price band of ₹1,960, HMIL is valued at 26.3x FY24 EPS.”
When is Hyundai IPO’s allotment and lisitng?
The allotment for the Hyundai Motor IPO is expected to be finalised on October 18. The stock will list on BSE, NSE with tentative listing date fixed as October 22, 2024.