Hyundai Motor India IPO: Key Developments and Market Performance

The Hyundai Motor India IPO, which opened on Tuesday, October 15, concludes today, Thursday, October 17. Despite a lukewarm response in the first two days, market experts remain optimistic about the issue’s successful closure. The IPO’s price band is set between ₹1,865 and ₹1,960 per share.

Subscription Performance

• Second Day:
  • Total subscription: 42%
  • Retail investors: 38%
  • Non-institutional investors (NIIs): 26%
  • Qualified Institutional Buyers (QIBs): 58%
  • Employee portion: 1.30 times
• Third Day (10:12 IST):
  • Subscription level: 43%
  • Shares subscribed: 4.26 crore out of 9.97 crore on offer
  • Retail investors: 40%
  • NIIs: 27%
  • QIBs: 58%
  • Employee portion: 1.38 times

On the IPO’s opening day, bids were received for 1.77 crore shares, representing an 18% subscription against the total offer size.

Offer Structure and Key Entities

• The IPO consists solely of an offer-for-sale by Hyundai Motor Company’s promoter, offering 14.2 crore shares.
• No fresh issue component is included.
• Lead merchant bankers: Kotak Mahindra Capital, Citigroup, HSBC Securities, JP Morgan, and Morgan Stanley.
• Registrar: KFin Technologies.

Company Strengths

• Second-largest auto OEM and the top exporter of passenger vehicles in India.
• Offers diverse products across key vehicle segments and powertrains.
• Swiftly adapts to market trends, launching innovative products and technologies.
• Operates an extensive nationwide sales and service network with digitization across the value chain.

Leadership Team

• Unsoo Kim – Managing Director, overseeing overall operations.
• Tarun Garg – Whole-time Director & COO, responsible for sales, marketing, and dealer management.
• Gopalakrishnan Chathapuram Sivaramakrishnan – Whole-time Director & Chief Manufacturing Officer.
• Wangdo Hur – Whole-time Director & CFO, managing financial operations.

Analyst Views and Grey Market Trends

• Arihant Capital’s Recommendation: “Subscribe for long term” citing Hyundai’s market stability, operational efficiency, and EV plans.
• Grey Market Premium (GMP):
  • Current GMP: +₹17, indicating a slight premium over the issue price.
  • Estimated listing price: ₹1,977 (0.87% above the upper band price of ₹1,960).
  • GMP has fluctuated between ₹0 and ₹570 over the last 21 sessions, reflecting varied market sentiment.

The IPO’s outcome hinges on today’s investor response, with the company aiming to leverage its strengths and align with India’s growing passenger vehicle market.