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PremiumHyundai IPO Day 2 Highlights: The second day of bidding for Hyundai Motor India Ltd's initial public offering (IPO) did not get a favourable reaction in the Indian stock market today. There was a lack of enthusiasm for the IPO, and it received a sluggish response.The bidding for Hyundai Motor India IPO commenced on Tuesday, October 15, 2024, and today is the second day of the IPO subscription period. The public issue will close on Thursday, October 17, 2024. Hyundai Motor India IPO price band has been set at ₹1,865 to ₹1,960 per share.
On the second day of subscription, the Hyundai Motor India IPO has achieved a 42% subscription, based on BSE data.
According to BSE, the initial share sale saw bids for 4,17,33,328 shares against the 9,97,69,810 shares offered.
The retail investors' portion saw a 38% subscription, while non-institutional investors' quota reached 26%. The portion allocated to qualified institutional buyers (QIBs) was subscribed 58%. Additionally, the employee portion was subscribed 1.30 times.
At the end of the first day of the bidding process, Hyundai Motor India IPO saw 18% subscription as it received bids for 1.77 crore equity shares as compared with 9.97 crore shares on the offer, according to NSE data. Stay tuned to our Hyundai Motor India IPO LIVE blog for the latest updates.
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.
“We recommend subscribe to the issue as the company with its industry leading market share in SUV segment, premiumization of cars which will help in growth of ASP, increase in production capacity and foray into EV segment will boost future prospects positively. We recommend to subscribe to the issue as a good long term investment as a pure play PV segment company with industry leading market share in SUV segment, premiumization and launch of new EV models aiding revenue and margin improvement, though the valuations seem to be in sync with other listed peers," the brokerage said.
The initial public offer of Hyundai Motor India IPO has been subscribed 37% on the second day of subscription today, at 16:18 IST, as per BSE data.
The initial share sale received bid for 3,72,09,739 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 23%. The qualified institutional buyers (QIBs) part is booked 45%. The employee portion has been subscribed 1.30 times.
The sales of domestic PVs in India experienced a 5% compound annual growth rate, marking a significant recovery from a 10% decline between FY19 and FY21. During FY23, sales reached a record high of 3.9 million vehicles and are expected to increase by 8.4% in FY24, reaching 4.2 million units.
This growth is being primarily driven by strong demand for SUVs and improved disposable incomes. The industry's value grew at an 11% compound annual growth rate from FY19 to FY23, supported by a shift towards premium vehicles and price increases related to compliance. Total vehicle sales, including exports, rebounded with a 21% compound annual growth rate after FY21, resulting in a market value of ₹3 trillion.
The brokerage believes that Maruti Suzuki India (MSIL) is most appropriately compared with Hyundai Motors India, a pure play listed PV player. According to the brokerage, there are three players from the domestic PV space that are listed in India: Maruti Suzuki, Tata Motors, and Mahindra & Mahindra (M&M). However, Tata Motors and M&M also have other significant lines of business, making peer comparison largely unnecessary.
The initial public offer of Hyundai Motor India IPO has been subscribed 28% on the second day of subscription today, at 15:09 IST, as per BSE data.
The initial share sale received bid for 2,77,58,465 shares against 9,97,69,810 shares on offer, according to BSE.
The portion for retail investors received 37% subscription while the quota for non-institutional investors got subscribed 22%. The qualified institutional buyers (QIBs) part is booked 14%. The employee portion has been subscribed 1.25 times.
“At the higher price range, HMIL is seeking an P/E ratio of 25.6x, which is in-line to its peer average. Thus the issue is fully priced. Historically, the company has reported profitable business growth and is consistently paying dividends. Further, with capacity expansion, new PV launches and focus on premiumization, the company is well placed to benefit in the long-term. Thus considering the above observations, we assign a “Subscribe for Long Term" rating for the issue," the brokerage said.
Hyundai IPO Day 2 Live: Deepak Shenoy, Founder of Capitalmind, weighed in on Twitter, and highlighted two key points often debated by potential investors on Hyundai Motor India IPO. While Shenoy did not recommend or oppose the IPO, he shed light on nuanced aspects that investors should take into account before making any decisions.
Hyundai IPO Day 2 Live: Hyundai Motor India IPO has been subscribed 25% so far as it received bids for 2.5 crore equity shares as compared with 9.97 crore shares on the offer, according to NSE data as at 1:45 PM. The Retail investors’ portion has been subscribed 35%, while the Non-Institutional Investors (NII) portion is booked 20%. Qualified institutional buyers (QIBs) category is subscribed 0.09 times, and the employee portion received 1.20 times subscription so far.
Hyundai IPO Day 2 Live: Hyundai Motor India IPO GMP today, or grey market premium today, is ₹35 per share, according to stock market observers. This indicates that in the grey market, the shares of the company are trading higher by ₹35 than their issue price of ₹1,960 apiece, or at a premium of just 1.79% at ₹1,995 per share.
Hyundai IPO Day 2 Live: Hyundai Motor India IPO has been subscribed 24% so far as it received bids for 2.42 crore equity shares as compared with 9.97 crore shares on the offer, according to NSE data as at 1:00 PM. The Retail investors’ portion has been subscribed 34%, while the Non-Institutional Investors (NII) portion is booked 19%. Qualified institutional buyers (QIBs) category is subscribed 0.08 times, and the employee portion received 1.17 times subscription so far.
Hyundai IPO Day 2 Live: At the upper price band of ₹1,960, Hyundai Motor India is available at a premium valuation of 26.7x P/ E ratio based on FY25E post issue annualised EPS. We assign a “Subscribe" rating to the issue for the long-term investment, given its strong parentage with Hyundai Motor Company, healthy financial profile, sustained earnings, increased product mix in the SUV segment and enhanced focus towards Electric Vehicle space, says Geojit Financial Services.
Mohit Gulati, CIO and Managing Partner of ITI Growth Opportunities Fund explained that the upper end of the Hyundai Motor India IPO price band is set at ₹1,960 which translates to a valuation of 26 times EPS on an FY24 basis and about 30 times EPS on an FY25 basis due to a challenging year.
“"Despite people's love for the brand, it's important to recognise that the company is conducting a complete Offer for Sale paying its parent; capturing the peak of a liquidity-driven Bull Market, which may not be favourable for investors. Additionally, Hyundai's market share has remained stagnant or even decreased, with Maruti Suzuki on the higher end and Tata Motors + Mahindra & Mahindra competing from below. Considering these factors, I believe the issue price should be at least ₹100-250 lower. Therefore, I will be avoiding this issue. However, I would consider buying the stock once the industry's macros/micros start improving, better products start rolling out from Hyundai (and not Kia), and the valuation hits the 21-23x one year forward mark. Until then enjoy the Laugh of Liquidity!," said Gulati.
Hyundai IPO Day 2 Live: Hyundai Motor India IPO has been subscribed 23% so far as it received bids for 2.25 crore equity shares as compared with 9.97 crore shares on the offer, according to NSE data as at 12:00 PM. The Retail investors’ portion has been subscribed 33%, while the Non-Institutional Investors (NII) portion is booked 18%. Qualified institutional buyers (QIBs) category is subscribed 0.05 times, and the employee portion received 1.13 times subscription so far.
Hyundai IPO Day 2 Live: Market analysts have pointed out that historically, larger Offer for Sale (OFS) have not been rewarding for investors, citing the example of the Life Insurance Corporation of India (LIC) IPO. Being the biggest IPO in India's history has generated significant buzz and curiosity around Hyundai Motor India and its stock offering but, however, market experts have raised huge concerns over its valuations.
Hyundai IPO Day 2 Live: At the upper price band of ₹1,960, Hyundai Motor India IPO is coming with an underlying P/E valuation of 26.3x on its FY24 earnings compared to market leader Maruti Suzuki’s P/E valuation at 30.4x its FY24 earnings. Sales and PAT grew at a CAGR of 19.4% and 47.7% respectively from FY21-24, with EBITDA margins of 13.1% and RoCE over 50%. As such, with strong financials and product lineup, we think it is a good long-term addition to the portfolio even if listing gains might be limited, said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
Hyundai IPO Day 2 Live: Hyundai Motor India IPO has been subscribed 22% so far as it received bids for 2.16 crore equity shares as compared with 9.97 crore shares on the offer, according to NSE data as at 11:00 AM. The Retail investors’ portion has been subscribed 32%, while the Non-Institutional Investors (NII) portion is booked 17%. Qualified institutional buyers (QIBs) category is subscribed 0.05 times, and the employee portion received 1.13 times subscription so far.
Hyundai IPO Day 2 Live: Hyundai Motor India IPO worth ₹27,870.16 crore is the biggest IPO in India to date, surpassing the previous record held by Life Insurance Corporation of India (LIC). In addition to being India’s biggest IPO, this also marks the first IPO by a car manufacturer in the country since Maruti Suzuki India’s IPO in 2003.
Hyundai IPO Day 2 Live: The bidding process for the second day of Hyundai Motor India IPO commenced at 10:00 AM on Wednesday, October 16. At the end of the first day of the bidding process, Hyundai Motor India IPO saw 18% subscription as it received bids for 1.77 crore equity shares as compared with 9.97 crore shares on the offer, according to NSE data.
Hyundai IPO Day 2 Live: Hyundai Motor India IPO opened for subscription on October 15, and will close on October 17. The IPO allotment is expected to be finalized on October 18, and the company will credit the shares into the demat accounts of eligible allottees on October 21 and initiate refunds to unsuccessful investors on the same day. Hyundai Motor IPO listing date is October 22 and the equity shares of Hyundai Motor India will be listed on BSE and NSE.
Hyundai IPO Day 2 Live: At the end of the first day of the bidding process, Hyundai Motor India IPO saw 18% subscription as it received bids for 1.77 crore equity shares as compared with 9.97 crore shares on the offer, according to NSE data. The Retail investors’ portion was subscribed 26%, while the Non-Institutional Investors (NII) portion was booked 13%. Qualified institutional buyers (QIBs) category was subscribed 5%, and the employee portion received 79% subscription.
Hyundai IPO Day 2 Live: Hyundai Motor India IPO price band has been set at ₹1,865 to ₹1,960 per share. At the upper-end of the price band, the company plans to raise ₹27,870.16 crore from the book-built issue which is entirely an offer for sale of 14.22 crore shares from its South Korean parent, Hyundai Motor Company.
Hyundai IPO Day 2 Live: Hyundai Motor India IPO has seen a slow start in the Indian stock market. The bidding for Hyundai Motor India IPO commenced on Tuesday, October 15, 2024, and today is the second day of the IPO subscription period. The public issue will close on Thursday, October 17, 2024. At the end of the first day of the bidding process, Hyundai Motor India IPO saw just 18% subscription
Hyundai IPO Day 2 Live: The bidding for Hyundai Motor India IPO commenced on Tuesday, October 15, 2024, and today is the second day of the IPO subscription period. The public issue will close on Thursday, October 17, 2024.
