Hyundai Motor India IPO: Price band set at ₹1,865-1,960 per share; check GMP, issue details, more

Hyundai Motor India IPO price band: The Hyundai Motor India Limited IPO price band has been fixed in the range of ₹1,865 to ₹1,960 per equity share of the face value of ₹10. The Hyundai Motor India IPO date of subscription is scheduled for Tuesday, October 15, and will close on Thursday, October 17. The allocation to anchor investors for the Hyundai Motor India IPO is scheduled to take place on Monday, October 14.

The floor price is 186.50 times the face value of the equity shares and the cap price is 196.00 times the face value of the equity shares. The price to earnings ratio based on diluted EPS for financial year ended 2024 for the company at the upper end of the price band is as high as 26.28 times and at the lower end of the price band is 25.01 times as compared to the average industry peer group P/E ratio of 23.57 times. The Hyundai Motor India IPO lot size is 7 equity shares and in multiples of 7 equity shares thereafter.

Hyundai Motor India IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee reservation portion includes up to 778,400 equity shares. A discount of ₹186 per equity share is being offered to eligible employees bidding in the employee reservation portion.

Tentatively, Hyundai Motor India IPO basis of allotment of shares will be finalised on Friday, October 18, and the company will initiate refunds on Monday, October 21, while the shares will be credited to the demat account of allottees on the same day following refund. Hyundai Motor India share price is likely to be listed on BSE and NSE on Tuesday, October 22.

Hyundai Motor India, a division of the Hyundai Motor Group, ranks as the third largest auto original equipment manufacturer (OEM) globally in terms of passenger vehicle sales in CY2023, as per the CRISIL Report. Since Fiscal 2009, they have consistently held the position of being the second largest auto OEM in the Indian passenger vehicles market, based on domestic sales volumes, as per the CRISIL Report. Hyundai Motor India has a proven track record of producing and marketing reliable, safe, feature-rich, innovative four-wheeler passenger vehicles that incorporate the latest technology.

As per the red herring prospectus (RHP), the company's listed peers are Maruti Suzuki India Ltd (with a P/E of 29.38), Tata Motors Ltd (with a P/E of 11.36), and Mahindra & Mahindra Ltd (with a P/E of 29.96).

Between March 31, 2024, and March 31, 2023, Hyundai Motor India Limited's profit after tax (PAT) climbed by 29% and its revenue by 16%, respectively, during the financial year.

Hyundai Motor India IPO details

Hyundai Motor Company's promoter will offer 14.2 crore equity shares in the offer-for-sale as per the RHP. The IPO does not include any fresh issue component.

The merchant bankers in charge of the Hyundai Motor India IPO are Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India, and Morgan Stanley India Company, while KFin Technologies will serve as the registrar.

Hyundai Motor India IPO GMP today

Hyundai Motor India IPO GMP today is +147. This indicates Hyundai Motor India share price was trading at a premium of ₹147 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Hyundai Motor India share price is indicated at ₹2,107 apiece, which is 7.5% higher than the IPO price of ₹147.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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