The listing of Hyundai Motor India is highly anticipated as the first major auto player's debut on Indian bourses after Maruti Suzuki went public 20 years ago.
However, analysts expect the listing could go either way on the positive to negative spectrum, given the weak grey market demand and subdued response for the IPO.
The IPO was booked 2.3 times, with a full subscription achieved only on the last day. The valuations are fully priced, and since the issue is a complete offer for sale (OFS), the company will not receive any proceeds from the offer.
"While Hyundai Motor India holds a strong market position as the second-largest passenger vehicle company in India, and its strategic focus on SUVs is promising, the overall market sentiment and IPO size may limit listing gains," said Shivani Nyati, Head of Wealth, Swastika Investmart.
The GMP moved back to the positive territory after slipping into the red for a brief period and is currently at Rs 67, which indicates a moderate gain of 3% over the issue price.
Also Read: Shapoorji Pallonji Group's Afcons Infrastructure sets price band for its IPO. Check details
"Hyundai Motor India is the second-largest automobile manufacturer in India, holding a 15% market share. The company’s shares at pre-listing are trading at a GMP of just over 3% higher than its original price band," said Master Capital Services.
While immediate listing gains may be modest, analysts say Hyundai’s robust fundamentals make it an attractive long-term investment.
Hyundai has ensured to maintain a stable share market in India historically. It enjoys loyalty in the Indian consumer base owing to smooth and affordable after-sales service.
Equipped with R&D from Korea and an automated factory in Chennai, the company has been able to optimise its operations while expanding its distribution. The automaker also plans to gradually become a major player in the EV segment.
The company's leadership in India's passenger vehicle market along with its strategic focus on electric vehicles make a case for long-term potential.
"Investors with a long-term outlook and the ability to navigate potential listing challenges may consider holding onto their investments post-listing for potential future growth," said Shivani Nyati.
"Despite some concerns regarding short-term listing gains due to subdued grey market premium, the company offers steady growth prospects amid industry tailwinds, robust financials and healthy SUV product demand," said Master Capital Services.
The issue was completely an offer for sale (OFS) of 14.2 crore shares, offloaded by the company's parent Hyundai Motor Global. Since the IPO is an OFS, all the proceeds will go to the selling shareholder.
Even though the entire proceeds from the IPO will go to the parent company, the management said funds will be used for research and development and new innovative offerings.
However, analysts expect the listing could go either way on the positive to negative spectrum, given the weak grey market demand and subdued response for the IPO.
The IPO was booked 2.3 times, with a full subscription achieved only on the last day. The valuations are fully priced, and since the issue is a complete offer for sale (OFS), the company will not receive any proceeds from the offer.
"While Hyundai Motor India holds a strong market position as the second-largest passenger vehicle company in India, and its strategic focus on SUVs is promising, the overall market sentiment and IPO size may limit listing gains," said Shivani Nyati, Head of Wealth, Swastika Investmart.
The GMP moved back to the positive territory after slipping into the red for a brief period and is currently at Rs 67, which indicates a moderate gain of 3% over the issue price.
Also Read: Shapoorji Pallonji Group's Afcons Infrastructure sets price band for its IPO. Check details
"Hyundai Motor India is the second-largest automobile manufacturer in India, holding a 15% market share. The company’s shares at pre-listing are trading at a GMP of just over 3% higher than its original price band," said Master Capital Services.
While immediate listing gains may be modest, analysts say Hyundai’s robust fundamentals make it an attractive long-term investment.
Hyundai has ensured to maintain a stable share market in India historically. It enjoys loyalty in the Indian consumer base owing to smooth and affordable after-sales service.
Equipped with R&D from Korea and an automated factory in Chennai, the company has been able to optimise its operations while expanding its distribution. The automaker also plans to gradually become a major player in the EV segment.
The company's leadership in India's passenger vehicle market along with its strategic focus on electric vehicles make a case for long-term potential.
"Investors with a long-term outlook and the ability to navigate potential listing challenges may consider holding onto their investments post-listing for potential future growth," said Shivani Nyati.
"Despite some concerns regarding short-term listing gains due to subdued grey market premium, the company offers steady growth prospects amid industry tailwinds, robust financials and healthy SUV product demand," said Master Capital Services.
The issue was completely an offer for sale (OFS) of 14.2 crore shares, offloaded by the company's parent Hyundai Motor Global. Since the IPO is an OFS, all the proceeds will go to the selling shareholder.
Even though the entire proceeds from the IPO will go to the parent company, the management said funds will be used for research and development and new innovative offerings.
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