As the much-anticipated Hyundai Motor India IPO reaches its final day of subscription on October 17, 2024, investors are closely monitoring the unfolding scenario. Officially launched on October 15, this initial public offering (IPO) features a price band between ₹1,865 and ₹1,960 per equity share. With lukewarm demand observed thus far, potential investors are left debating whether to jump on board or hold off until market conditions stabilize.
Current Subscription Status
As of the second day’s end, the Hyundai Motor India IPO has seen a subscription rate of just 0.42 times overall. Breaking it down, the retail investor segment stands at 0.40 times, while non-institutional investors (NIIs) are at 0.27 times. The qualified institutional buyer (QIB) category has shown slightly more interest, registering at 0.58 times. This subdued response raises significant concerns regarding market sentiment and investor confidence.
Grey Market Premium (GMP)
The current grey market premium (GMP) for Hyundai Motor India shares is pegged at ₹17, estimating a debut price of approximately ₹1,977 on Indian exchanges. This reflects a modest premium of around 0.87%. Notably, this represents a sharp decline from earlier GMP levels that reached ₹570, indicating a notable shift in investor sentiment and enthusiasm.
Expert Opinions: Should You Apply?
Market analysts and brokerage firms remain divided on the decision to invest in the Hyundai Motor India IPO. Some experts highlight the company’s strong market position and ambitious plans for expanding their electric vehicle offerings as key advantages for long-term growth. For instance, Master Capital Service projects a compound annual growth rate (CAGR) of 4.5% to 6.5% for the domestic passenger vehicle (PV) market, contingent on GDP growth trajectories. They emphasize Hyundai’s substantial market share and thoughtful strategies for capacity growth as promising signs for potential investors.
On the contrary, while Aditya Birla Capital appreciates Hyundai’s strong foundation and technological innovations, they caution that the upper end of the valuation, at 26 times FY24 earnings per share (EPS), may not offer substantial upside potential for new investors. Meanwhile, Marwadi Shares and Finance provides a “subscribe” rating, arguing that Hyundai remains the second-largest auto OEM in India and is competitively priced compared to its peers in the automotive sector.
Conclusion
As we approach the closing hours of subscription for Hyundai Motor India’s IPO, investors must thoroughly assess their options. The investment carries attractive long-term growth potential and a strong market position; however, the declining subscription rates and significant valuation concerns merit careful consideration. Disclaimer: This article serves informational purposes only and does not serve as investment advice. Always perform your own research or consult a financial advisor before making any investment decisions.