On Tuesday, October 17, Hyundai Motor India’s eagerly awaited initial public offering (IPO) will be up for bid. The goal is to raise Rs 27,856 crore, which would make it the biggest IPO in the history of the Indian stock market. Until the selling concludes on Thursday, investors can buy shares in lots of seven at prices ranging from Rs 1,865 to Rs 1,960 each. This is the first initial public offering (IPO) by an Indian automaker since Maruti Suzuki’s 2003 launch. With up to 14.22 crore equity shares available through the IPO, Hyundai’s market capitalization is expected to reach Rs 1.6 lakh crore.
Nonetheless, investor zeal for the grey market has waned. The grey market premium (GMP) for Hyundai Motor India fell sharply to Rs 65 per share after reaching a peak of Rs 500 earlier this month, suggesting a slight 3% possible gain upon listing. The sharp drop in value from Rs 150 per share over the weekend underscores the erratic mood of the market.
Concerns Around OFS and Valuations
Many analysts are cautiously optimistic about Hyundai’s long-term prospects despite its full pricing because of its strong financial record and market presence. But the offering’s nature—an Offer for Sale (OFS) with the money going to the South Korean parent company—has sparked worries. Hyundai Motor India’s attraction is diminished by investors’ concerns that none of the money will remain with the company. Furthermore, some investors worry that tighter liquidity could affect overall market dynamics due to recent market volatility and high valuations.
These worries were minimized by WealthMills Securities’ Director of Equity Strategy Kranthi Bathini, who said that investors shouldn’t be put off by the OFS. “After supporting the business for decades, the promoters are now just enjoying the benefits. Strong fundamentals and Hyundai’s history should sustain favorable IPO sentiment.
Expert Opinions
Brokers’ opinions on the IPO are divided. Hyundai’s limited presence in the MPV class and possible weakening in the passenger vehicle (PV) market in FY25 could be obstacles, according to IIFL Securities, even though the company’s value is competitive when compared to other Indian automakers.
Hyundai’s drive toward electric vehicles (EVs) was emphasized by Nuvama Institutional Equities, which pointed out that the company has the Creta EV and other models in the works. Globally, India may see future development prospects due to Hyundai’s varied EV and hybrid range.
Operationally, Hyundai is attempting to lower import expenses by localizing its supply chain, which includes essential parts like ADAS components and EV batteries. It is anticipated that the recent purchase of General Motors’ Talegaon facility will increase manufacturing capacity by 0.17 million vehicles by H2FY26.
Hyundai Motor’s Market Position
In the Indian PV market, Hyundai Motor India now has a 14–15% market share, second only to Maruti Suzuki. Sharekhan cites the company’s robust market positioning, pertinent product offerings, and strong parentage as the main drivers of its long-term success. Notwithstanding its difficulties, the IPO continues to rank among the most important occasions in the financial and automotive sectors of India.
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