The Rs 27,870 crore preliminary public offer (IPO) of Hyundai India ended recently with the pains getting subscribed 2.37 instances albeit a lackluster turnout from retail particular person traders (RIIs). The pains got over 23.63 crore consolidated half bids versus 9,97,69,810 shares on hand for subscription.
On the closing day, retail traders subscribed the pains by just appropriate 50% in opposition to the quote of 4,94,95,705 shares on hand for subscription. The IPO sailed via thanks to real participation by qualified institutional customers (QIBs) who booked their quota by 6.97 instances. The fragment reserved for the qualified QIBs attracted merely 19.72 crore bids in opposition to 2,82,83,260 shares reserved for them.
Non-institutional traders subscribed handiest 60% within the quota reserved for them.
The pains is totally a proposal within the marketplace (OFS) of 14.2 crore shares, that can be offloaded by the firm's mother or father, Hyundai Motor World. Since the IPO is an OFS, all proceeds will scramble to the selling shareholder.
Although all proceeds from the IPO will scramble to the mum or father firm, management talked about that funds would perchance be ragged for review and pattern and recent innovative offerings.
Hyundai IPO GMP
Hyundai India's grey market premium has fallen to 0, indicating a flat or destructive itemizing designate. The GMP has been falling consistently over the direction of the pains. Its perfect GMP became spherical Rs 570 per half.
Hyundai IPO Mark Band
The firm has situation a designate band of Rs 1,865-1,960 per half, with traders in a build apart to swear for 7 shares in one lot.
Hyundai India IPO Review
Most analysts counsel traders subscribe to the IPO for the very long timeframe, noting that the firm has a real impress presence in India and is successfully-positioned to capture development alternatives within the passenger automobile market.
"We assign a subscribe rating to Hyundai, given smartly-liked development prospects amid alternate tailwinds, sturdy financials, and a healthy SUV product slate. We demand minute itemizing beneficial properties from this IPO, but look forward to the firm will bring healthy double-digit portfolio returns over the medium to very long timeframe," talked about ICICI Snort.
"At the upper band, the firm is valued at 26.2 instances its FY24 earnings and 26.7 instances if we annualize FY25 earnings. We assume relating to the pains is totally priced and counsel a Subscribe – Long Term rating for the IPO," talked about Anand Rathi.
Other Particulars
Hyundai is the 2d-largest carmaker in India, with a portfolio of 13 passenger automobile gadgets across sedans, hatchbacks, and SUVs. The firm aims to leverage its real native manufacturing capabilities to connect itself as Hyundai Motor's largest manufacturing unfriendly in Asia.
It operates two manufacturing facilities in Chennai, with a blended assign in capability of 8.24 lakh gadgets per annum, currently operating at over 90% capability utilization.
For the quarter ending June 2024, Hyundai Motor India reported income of Rs 17,344 crore, up from Rs 16,624 crore within the identical period last year. Of this income, 76% became derived from the home market, whereas exports accounted for 24%.
The firm's discover profit for the quarter stood at Rs 1,489.65 crore, in comparison to Rs 1,329.19 crore within the outdated year.
Kotak Mahindra Capital, Citigroup World, HSBC Securities, JP Morgan, and Morgan Stanley are the book-operating lead managers for the pains, whereas KFin Technologies is the registrar to the offer.
(Disclaimer: Suggestions, ideas, views and opinions given by the experts are their very possess. These accomplish now not tell the views of Financial Instances)