He categories reserved for retail investors and non-institutional investors were not fully subscribed, mainly due to concerns about high prices. The retail section received 50% subscription and the non-institutional investor portion garnered a 60% response.
The QIB portion of the Rs 27,870 crore issue was accounted for 6.97 times.
Even when the IPO closed the bidding, the BPM of the company in the gray market fell to 0 rupees, continuing the downward trend seen in recent days.
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. However, the premium PE valuation of 26 times its FY25 earnings means short-term investors may be disappointed given the current GMP and valuation conversations. Hyundai has ensured to maintain a stable stock market in India historically. 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 was entirely an offer for sale (OFS) of 14.2 crore shares, sold by the company’s parent company, Hyundai Motor Global. Since the IPO is an SFO, all proceeds will go to the selling shareholder.
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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