Hyundai IPO: Should you invest in India's largest public offering?
Gearing up to be the largest public offering ever witnessed in India, Hyundai Motor India is set to open its Initial Public Offering (IPO) tomorrow. The offering, worth a whopping ₹27,856 crore, will be open for subscription till October 17. This highly anticipated event has sparked investor interest across the nation, raising critical questions: Should you invest? What are the key details to consider before bidding?
Hyundai's IPO receives 'subscribe' rating from ICICI Direct Research
ICICI Direct Research has assigned a 'Subscribe' rating to Hyundai Motor India's IPO, citing the company's strong financials and growth prospects. The firm also noted Hyundai's strong SUV lineup as a contributing factor. However, it expects limited listing gains from this IPO but healthy double-digit portfolio returns over a medium to long-term period.
Hyundai's market position and future plans
SBI Securities has also given a 'Subscribe' rating for the long term, citing Hyundai's position as the second-largest market shareholder in the Indian passenger vehicle industry. The company is known for its strong brand, popular models such as Creta, Venue and Verna, advanced technology, and high export potential. Arihant Capital also shared the sentiment by giving a 'Subscribe for long term' rating to the issue. BlackRock and Singaporean sovereign wealth fund GIC Pte have already placed bids in the IPO.
Hyundai's IPO details and gray market performance
Hyundai Motor India plans to sell up to 14.2 crore equity shares. The company has set a price band of ₹1,865-1,960 per share, valuing the automaker at up to ₹1.6 lakh crore. Investors can bid for one lot of seven shares, and multiples of seven thereafter. The shares will list on NSE, BSE by October 22. The company's shares have witnessed a massive decrease in GMP, falling over 80% in the past 10 days to ₹65 (a meagre 3.3% premium).
