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| Hyundai Motor India IPO |
Hyundai Motor India's initial public offering (IPO) was open for bidding from October 15 to October 17. The shares were offered at Rs 1,865 to Rs 1,960 per share, with a minimum lot size of 7 shares.
Hyundai Motor India is set to conclude the allocation of shares on Friday, October 18. Bidders can expect to receive notifications, alerts, or emails regarding the deduction of their funds or the cancellation of their IPO mandates either during the weekend or by the latest on Monday, October 21.
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India's Largest IPO ( Hyundai Motor India IPO )
The largest initial public offering in the Indian stock market faced significant challenges but ultimately succeeded, largely due to the support from institutional investors on the final day.
The initial public offering (IPO) of Hyundai Motor India was available for bidding from October 15 to October 17. The company set a fixed price range for its shares, which was between Rs 1,865 and Rs 1,960, with a minimum lot size of 7 shares.
Through this primary offering, the automaker successfully raised approximately Rs 27,856 crore, which consisted entirely of an offer-for-sale (OFS) involving 142,194,700 shares from its South Korean parent company, Hyundai Motor Company.
The situation resulted in a subdued level of bidding, with the overall subscription rate reaching only 2.37 times. The allocation for qualified institutional bidders (QIBs) was significantly oversubscribed at 6.97 times, whereas the segment reserved for employees experienced a subscription rate of 1.74 times.
In contrast, the portions designated for non-institutional and retail investors attracted bids of only 60 percent and 50 percent, respectively, throughout the bidding period.
The initial public offering (IPO) of Hyundai Motor India was available for bidding from October 15 to October 17. The company set a fixed price range for its shares, which was between Rs 1,865 and Rs 1,960, with a minimum lot size of 7 shares.
Through this primary offering, the automaker successfully raised approximately Rs 27,856 crore, which consisted entirely of an offer-for-sale (OFS) involving 142,194,700 shares from its South Korean parent company, Hyundai Motor Company.
The situation resulted in a subdued level of bidding, with the overall subscription rate reaching only 2.37 times. The allocation for qualified institutional bidders (QIBs) was significantly oversubscribed at 6.97 times, whereas the segment reserved for employees experienced a subscription rate of 1.74 times.
In contrast, the portions designated for non-institutional and retail investors attracted bids of only 60 percent and 50 percent, respectively, throughout the bidding period.
Hyundai Motor India IPO Grey Market Premium
The grey market premium (GMP) for Hyundai Motor India has experienced a significant decline following an underwhelming response to its bidding process. Recent reports indicate that the company is now trading at a discount of Rs 32-35 per share, which translates to an approximate loss of 2 percent for investors upon listing.
Notably, the company has completely forfeited its previous standing in the unofficial market, where it had once been valued at a premium of Rs 500.
Notably, the company has completely forfeited its previous standing in the unofficial market, where it had once been valued at a premium of Rs 500.
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The company is engaged in the production and distribution of a diverse range of four-wheeled passenger vehicles, encompassing various models such as sedans, hatchbacks, SUVs, and electric vehicles (EVs).
Brokerages generally maintain an optimistic perspective regarding the matter and recommend long-term investment, highlighting the company's robust financial history, strong brand recognition, ambitious expansion strategies, substantial market share, and emphasis on product premiumization.
Nevertheless, concerns arise from factors such as competitive pricing strategies, dwindling cash reserves, the significant size of the offering, the possibility of future stake sales, and the entirely offer-for-sale structure, which may pose challenges.
Hyundai Motor India Company Overview
Hyundai Motor India, located in Chennai, operates as a subsidiary of South Korea's Hyundai Motor Group recognized as the third largest original equipment manufacturer (OEM) globally in terms of passenger vehicle sales.The company is engaged in the production and distribution of a diverse range of four-wheeled passenger vehicles, encompassing various models such as sedans, hatchbacks, SUVs, and electric vehicles (EVs).
Brokerages generally maintain an optimistic perspective regarding the matter and recommend long-term investment, highlighting the company's robust financial history, strong brand recognition, ambitious expansion strategies, substantial market share, and emphasis on product premiumization.
Nevertheless, concerns arise from factors such as competitive pricing strategies, dwindling cash reserves, the significant size of the offering, the possibility of future stake sales, and the entirely offer-for-sale structure, which may pose challenges.
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The company's shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with a tentative listing date set for Tuesday, October 22.
Book-running lead managers for the IPO of Hyundai's IPO
The Hyundai Motor IPO is being managed by a consortium of book-running lead managers that includes Kotak Mahindra, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India, and Morgan Stanley India. Kfin Technologies has been appointed as the registrar for this offering.The company's shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with a tentative listing date set for Tuesday, October 22.
Important Dates and Information of Hyundai's IPO
Share Allocation Date: October 18
Expected Listing Date: October 22
Notification for Bidders: Investors can expect notifications regarding the deduction of funds or cancellation of mandates by October 21.
Subscription Details and Challenges of Hyundai's IPO
Despite the potential of the Indian market, the IPO faced significant challenges:
Overall Subscription Rate: The IPO was subscribed 2.37 times.
Qualified Institutional Bidders (QIBs): This segment saw strong interest, with a subscription rate of 6.97 times.
Non-Institutional and Retail Investors: These categories were underwhelming, attracting only 60% and 50% subscription rates, respectively.
How to Check Hyundai Motor India IPO Allotment Status
Investors who participated in the Hyundai Motor India issue can verify their allotment status by visiting the Bombay Stock Exchange (BSE) website. To do so, they should navigate to the designated page at https://www.bseindia.com/investors/appli_check.aspx.Once there, they need to select 'Equity' under the issue type and choose 'Hyundai Motor India Limited' from the dropdown menu for the issue name.
Following this, they must enter their application number and provide their PAN card ID. Finally, they should confirm they are not robots by clicking the appropriate checkbox and then submit their information.
Investors have the option to verify the allotment status through the online platform provided by KFin Technologies Limited, which serves as the registrar for the issue, accessible at https://kosmic.kfintech.com/ipostatus.
The registrar operates as a Sebi-registered organization, is authorized to perform its designated functions, and is responsible for the electronic processing of all applications as well as executing the allotment procedure by the prospectus.
The registrar operates as a Sebi-registered organization, is authorized to perform its designated functions, and is responsible for the electronic processing of all applications as well as executing the allotment procedure by the prospectus.
This entity is tasked with adhering to the established timelines for updating the electronic credit of shares to successful applicants, managing the dispatch and uploading of refunds, and addressing all inquiries from investors.
1) Access the online platform of KFin Technologies Limited.
2) Choose the IPO from the dropdown menu, which will only display options once the allotment has been confirmed.
3) You may need to select one of three identification methods: Application number, Demat Account number, or PAN ID.
4) Specify the application type by selecting either ASBA or non-ASBA.
5) Provide the necessary information corresponding to the mode you selected in the previous step.
6) For security reasons, ensure that you accurately complete the captcha.
7) Finally, click on the submit button.
FAQs
What is the price range for Hyundai Motor India shares in the IPO?
The shares were offered at a price range of Rs 1,865 to Rs 1,960.
When will Hyundai Motor India shares be listed?
The shares are expected to be listed on October 22.
How can I check the status of my Hyundai Motor India IPO application?
You can check your allotment status on the BSE website by entering your application number and PAN ID.
Who are the book-running lead managers for the Hyundai Motor India IPO?
The IPO is managed by a consortium including Kotak Mahindra, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India, and Morgan Stanley India.
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1) Access the online platform of KFin Technologies Limited.
2) Choose the IPO from the dropdown menu, which will only display options once the allotment has been confirmed.
3) You may need to select one of three identification methods: Application number, Demat Account number, or PAN ID.
4) Specify the application type by selecting either ASBA or non-ASBA.
5) Provide the necessary information corresponding to the mode you selected in the previous step.
6) For security reasons, ensure that you accurately complete the captcha.
7) Finally, click on the submit button.
FAQs
What is the price range for Hyundai Motor India shares in the IPO?
The shares were offered at a price range of Rs 1,865 to Rs 1,960.
When will Hyundai Motor India shares be listed?
The shares are expected to be listed on October 22.
How can I check the status of my Hyundai Motor India IPO application?
You can check your allotment status on the BSE website by entering your application number and PAN ID.
Who are the book-running lead managers for the Hyundai Motor India IPO?
The IPO is managed by a consortium including Kotak Mahindra, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India, and Morgan Stanley India.
Conclusion
Hyundai Motor India’s IPO represents a significant opportunity in the growing automotive sector in India. While the initial response was tepid, long-term investors may find value in the company’s established market presence and future growth strategies.
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