Hyundai Motor India (HMIL), the second-largest player in the Indian vehicle market, is all set to make its stock market debut with an IPO listing on Tuesday(October 15, 2024). With shares priced between Rs 1865-1960 a piece, the automaker aims to raise over 25,000 crore from the bidding, which will remain open till Thursday, October 17, 2024. Here are ten points for investors to remember about one of Asia’s biggest IPO, which has a large size of seven equity shares.
- Hyundai IPO is a complete offer for sale (OFS) of 14.2 crore shares with a face value of Rs 10 each, by its South Korean parent company Hyundai Motor Company. The parent company will retain its 82.5 per cent stake after the listing.
- The South Korean company, which has been operating in India since 1996, has sold 7.3 million vehicles in 2023. The carmaker, which includes Hyundai and Kia, currently has 13 passenger vehicle models including SUVs, hatchbacks, battery EVs, and sedans.
- 50 per cent of the net public issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors, and the remaining 35 per cent of shares are for retail investors. While 7, 78, 400 equity shares have been reserved for the company’s employees.
- Hyundai's share price offers less valuation comfort as compared to India’s largest automaker company Maruti.
- As Hyundai’s parent company is offloading 17.5 per cent of its stake, the company will not receive any of the offer’s proceeds. The entire amount will go to the parent company, which will receive all offer proceeds after deducting offer-related costs and applicable taxes.
- The Price-Earning ratio of Hyundai Motor India is also above the industry average of 24.41x, far higher than its parent company.
- Ahead of its IPO, Hyundai Motors India’s grey market premium is trading in the price range of Rs 65 in the unlisted market. The premium has nosedived from a high of Rs 570 to the current under Rs 50 level in the past 18 sessions. It suggests a premium of a marginal 3 per cent over the issue price.
- Maruti Suzuki India, Tata Motors Ltd, and Mahindra & Mahindra are the company’s listed peers. The P/E ratios of Maruti, Tata and Mahindra are 17.93, 11.36 and 29.96 respectively as of October 2024.
- Hyundai Motor India IPO basis of allotment of shares will reportedly be finalised on Friday, October 18. The refunds will start processing on Monday, October 21, while credit to the demat account of allottees will happen on the same day following the refund.
- The company shares will debut on BSE, NSE with the listing date on Tuesday, October 22, 2024, tentatively.
