Hyundai IPO Highlights: Share Allotment Expected Today; Latest GMP and How to Check Status

Hyundai Motor India's much-hyped initial public offering (IPO), the biggest in India's history, witnessed a somewhat underwhelming response, barely managing to secure full subscription within the three-day window. The saving grace came from Qualified Institutional Buyers (QIBs) who subscribed to their portion a whopping 6.97 times on the final day.

Retail investors, on the other hand, remained hesitant throughout the subscription period, with their portion only receiving 50% subscription. This subdued interest from retail investors could be seen as a "royal snub" towards the offering.

Hyundai Motor India IPO Subscription Details:

• Total shares offered: 9.97 crore

• Bids received: 23.63 crore

• Retail investors: 50% subscription

• Non-institutional investors (NIIs): 60% subscription

• QIBs: 6.97 times subscription

• Employee portion: 1.74 times subscription

Share Allotment and Listing Details

Investors are eagerly awaiting share allotment, which is expected to be finalized today, October 18th. If allotted shares, investors will see them credited to their demat accounts by October 21st. Unsuccessful bidders will receive refunds on the same day.

Latest GMP and Analyst Recommendations:

The grey market premium (GMP) for Hyundai Motor India IPO witnessed a significant drop on the final day of bidding, indicating a potential listing price below the offer price. Domestic brokerage Motilal Oswal Financial Services maintained a "Subscribe for long term" recommendation for the IPO. Analysts believe the company's strong presence in the SUV segment and upcoming electric vehicle launches position it well for future growth.

Key Investment Points:

• Issue priced at ₹1,960 per share

• P/E ratio of 26.3x FY24

• ROE of 33% and ROCE of 32% in FY24 (outperforming peers)

• Considered reasonably priced compared to Maruti Suzuki which trades at 29.8x P/E

Hyundai Motor India: A New Chapter

This IPO marks a significant event for India's automotive sector, being the first initial public offering by a foreign carmaker in over two decades, following Maruti Suzuki's listing in 2003. Hyundai Motor Group anticipates that the listing will enhance their brand image and provide much-needed liquidity.

How to Check Hyundai IPO Allotment Status?

To check the allotment status for Hyundai Motor India’s IPO, follow these steps:

1. Visit the BSE website or the official registrar’s website.

2. Select 'Equity' from the issue type drop-down menu.

3. Enter the Hyundai Motor India IPO details, such as the application number or PAN card number.

4. Submit the details to view your allotment status.

Alternatively, investors can also check their allotment status through their demat accounts or the stockbroker platform where they placed their bid.

Conclusion

The Hyundai Motor India IPO has undoubtedly faced a mixed reception, with concerns about valuation and retail participation casting a shadow over the final days of its subscription period. However, the strong demand from institutional buyers, particularly QIBs, signals confidence in the company’s long-term prospects.

Despite the grey market premium (GMP) indicating a muted listing, analysts remain bullish on Hyundai’s potential, especially considering its dominance in the SUV segment and future plans in electric vehicles.

For retail investors, while short-term gains may be limited, Hyundai’s consistent growth, strong market position, and focus on premiumisation offer significant promise for those with a long-term investment horizon. As Hyundai takes its first step into the Indian stock market, its performance will be closely watched by investors and industry stakeholders alike.