Mon Oct 14 17:30:03 UTC 2024: ## Hyundai Motor India to Go Public in Landmark IPO, Grey Market Premium Dips

**Chennai, India** – Hyundai Motor India is set to make history as the first automaker to go public in two decades, with its Initial Public Offering (IPO) kicking off on Tuesday, October 10th. Investors can subscribe to the offer until October 17th.

The IPO sees Hyundai Motor Global offloading a 17% stake in its Indian subsidiary, with the offer price set between Rs 1,870 and Rs 1,960 per share. At the upper end of the price band, Hyundai India would be valued at a staggering Rs 1.6 lakh crore.

While the proceeds from the IPO will go to the parent company, Hyundai Motor Global, management has indicated that the funds will be used to bolster research and development efforts and introduce innovative products.

The grey market premium (GMP) for Hyundai Motor India shares has seen a decline in recent weeks, currently standing at Rs 38, representing a 1.94% premium over the upper end of the price band. This is down from a GMP of Rs 570 just two weeks ago.

Despite the dip in GMP, the IPO is expected to be well-received by investors. Hyundai Motor India is the second largest carmaker in India, boasting a diverse portfolio of 13 passenger vehicle models. The company aims to solidify its position as Hyundai Motor’s largest production hub in Asia, leveraging its local manufacturing capabilities. Its two production facilities in Chennai have a combined capacity of 8.24 lakh units per year and are currently operating at over 90% capacity utilization.

Hyundai Motor India’s strong financial performance further supports the IPO’s attractiveness. In the quarter ending June 2024, the company reported revenue of Rs 17,344 crore, a significant increase from Rs 16,624 crore in the same quarter last year. Net profit for the quarter also climbed to Rs 1,489.7 crore, up from Rs 1,329.2 crore the previous year.

**Disclaimer:** The grey market premium (GMP) is not an official price quote for the stock and is based on speculation.

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