Tue Oct 15 08:30:14 UTC 2024: ## Hyundai Motor India Makes History with Landmark IPO

**Chennai, India** – Hyundai Motor India has become the first major automaker in two decades to launch an IPO in India, with subscriptions opening today, October 15th. The IPO, set to close on October 17th, aims to raise Rs 27,856 crore through the sale of 14.2 crore shares, representing a 17.5% stake in the company.

The price band for the IPO has been set between Rs 1,865 and Rs 1,960 per share, with a modest grey market premium (GMP) of Rs 40 reflecting a 2.04% premium over the issue price. Despite a recent drop in the GMP, analysts remain optimistic about Hyundai’s long-term prospects.

Hyundai, a dominant player in the Indian automotive market with a 14.6% market share, boasts a strong financial performance. The company reported revenue of Rs 17,344 crore and a net profit of Rs 1,489.65 crore in the first quarter of FY24, demonstrating robust growth. The IPO proceeds will be utilized to further expand the business, enhance electric vehicle (EV) offerings, and fund other strategic initiatives.

Several brokerage firms have issued positive recommendations for the Hyundai IPO, citing the company’s strong market position, robust financials, and growth potential. ICICI Direct, Bajaj Broking, and SBI Securities have all advised investors to subscribe, especially those with a long-term investment horizon. Hyundai’s valuation, pegged at 26.3 times its FY24 earnings at the upper end of the price band, is considered competitive compared to rivals like Maruti Suzuki.

LKP Securities, Anand Rathi, and Master Capital Services Ltd have echoed these sentiments, highlighting Hyundai’s strong presence in the Indian automotive landscape, particularly in the SUV segment. They suggest that investors looking for a long-term play in the auto sector should consider subscribing.

Saji John, Senior Research Analyst at Geojit Financial Services, emphasized Hyundai’s premium product lineup, especially in the SUV and EV segments, as a key driver for future growth. Hyundai’s innovative approach in the electric vehicle space could further solidify its market leadership as consumer demand shifts toward sustainable and advanced options.

With foreign investor interest also anticipated, Hyundai’s IPO is expected to not only enhance the company’s valuation but also boost the entire automotive sector. Investors can apply for the Hyundai IPO via their Demat accounts using net banking or stockbroker platforms. The minimum lot size is [Number of Shares] shares, and investors can place bids in multiples thereof.

Hyundai Motor India’s IPO presents a compelling opportunity for investors seeking exposure to a key player in the rapidly evolving Indian automotive market. While immediate short-term gains may not be guaranteed, Hyundai’s long-term growth potential, particularly in the electric vehicle space, makes it an attractive option for long-term investors.

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