It wouldn’t surprise anyone if GMP fell to negative before trading, given the sharp drop in recent days.
The issue was recorded with 11% so far on the first day, with retail investors being the highest bidders with 19% subscription in the category. The category reserved for non-institutional investors only obtained 8%.
There is almost a consensus among analysts that subscribing to Hyundai’s IPO willpower It will be a strong bet for long-term investors in the growing passenger vehicle market, as consumers increasingly prefer larger, premium cars.
As many as 10 analysts advised investors to subscribe to the IPO for the long term.
Also read: Hyundai Motor India IPO opens for subscription. Should you bid for the mega issue?However, the premium PE valuation of 26 times its FY25 earnings means short-term investors may be disappointed, given current GMP and valuation talks. Historically, Hyundai has ensured that it maintains a stable share market in India. It enjoys loyalty among the Indian consumer base due to its seamless and affordable after-sales service.
Equipped with R&D from Korea and an automated factory in Chennai, the company has been able to streamline its operations while expanding its distribution. The automaker also plans to gradually become a major player in the electric vehicle segment.
“We believe the company can tap the Indian PV market with its diverse offering. We have a long-term underwriting rating for the issue,” Arihant Capital said.
The issue is entirely an offer to sale (OFS) of 14.2 million shares, which will be sold by the company’s parent company, Hyundai Motor Global. Since the IPO is an SFO, all proceeds will go to the selling shareholders.
Although all proceeds from the IPO will go to the parent company, management said the funds will be used for research and development and innovative new offerings.
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