Hyundai Motor India IPO Day 1 Highlights: India's biggest-ever IPO subscribed 18%

Hyundai Motor India's Rs 27,870-crore initial public offering (IPO) saw a steady response on first day of subscription with 18 percent of the overall offer getting subscribed. On October 15, the retail portion was booked 26 percent with retail investors placing bids for 1.3 crore shares as against 4.94 crore shares on offer. Meanwhile, the non-institutional investors had bid for 27.66 lakh shares as compared to 2.12 crore shares on offer, representing 13 percent bids so far. (Read More)

On day one of the largest initial public offer (IPO) the country has ever seen, the head of research at Capitalmind has released an interesting statistic. On platform, Anoop Vijaykumar has posted that big IPOs have not historically delivered. He wrote, "19 of the top 30 IPOs by size have failed to generate excess returns." (Read More)

As of now, the overall subscription for Hyundai Motor India IPO stands at 17 percent, as per the NSE data.

The auto industry seems to have swerved to the edge with the simmering conflict in the Middle East causing deepest uncertainty over the prices of crude oil. Crude prices are feared to head north in case the tension flares up across a wider area in the region, threatening supplies. While many automakers reckon that the market is underestimating the geopolitical risks and a potential disruption to oil supplies, industry body SIAM believes a surge in fuel prices can put pressure on Internal Combustion Engine Vehicles (ICEVs). (Read More)

Hyundai Motor India's public offering, the largest-ever IPO in India, has garnered 16% overall subscription so far, with its grey market premium (GMP) climbing. In terms of category-wise subscriptions, the issue has been taken up 0.05 times by Qualified Institutional Buyers (QIB), 0.24 times by retail investors, and 0.11 times by Non-Institutional Investors (NII) at this point.

As per the current data, the Hyundai IPO has been subscribed 14% so far.

• After months of eager anticipation, Hyundai's IPO is finally here, with an issue size of Rs 27,870 crore, marking India's largest-ever IPO. While the country's passenger car market is known for being tough, with many global brands struggling to cater to value-conscious consumers and compete against the formidable competition posed by Maruti Suzuki, Hyundai has firmly established itself as the No. 2 player with a revenue of Rs 68,829 crore in FY24.
• In recent years, however, Hyundai has been losing some ground to Indian giants like Tata Motors and Mahindra & Mahindra, both of which have made impressive comebacks: the former fuelled by a successful EV transition, and the latter on the back of strong product launches. As for Hyundai Motors India, Creta remains a standout model, garnering a 38 percent market share in Q1 of FY25, the largest in the mid-size SUV segment. Creta accounted for 26.5 percent of the total revenue in FY24. (Read More)

Hyundai offer opens - October 15-October 17

Hyundai Allotment Date - October 18

Hyundai Listing Date - October 22

Multiplex firm PVR Inox Ltd on October 15 reported consolidated net loss of Rs 12 crore for the quarter ended September 30, 2024. It reported net profit of Rs 166 crore in the year-ago period. (Check live updates)

Economists are reviewing their forecasts for interest rate cuts in India after inflation accelerated faster than expected last month, fueled by surging food prices. Several economists, including Upasna Bhardwaj of Kotak Mahindra Bank Ltd. and Gaura Sen Gupta of IDFC First Bank Ltd., say the Reserve Bank of India is unlikely to cut interest rates in December as previously predicted, after data Monday showed consumer prices rose at the fastest pace this year in September. (Bloomberg)

Directorate General of Civil Aviation on Tuesday removed budget airline SpiceJet from enhanced surveillance. "Random spot checks shall continue to be carried out across the operational fleet to ensure continuing safety of operations," the aviation regulator said in a statement.

• The IPO market is buzzing with activity, and the biggest of them all opened for subscription on October 15. At Rs 27,870 crore, the IPO of Hyundai Motor India is the largest in terms of issue size in Indian market history, beating that of the government-owned Life Insurance Corporation.
• Hyundai is the second largest passenger vehicle company in India, and the issue values the company at $19 billion. Moneycontrol spoke to the top management of the company, including Managing Director Unsoo Kim, COO Tarun Garg, and CFO Wangdo Hur, to understand the company’s growth strategy and other issues concerning investors. (Read More)

Hyundai Motor India is a wholly-owned subsidiary of Hyundai Motor Company, Korea. Since its establishment in 1996, Hyundai has emerged as a leading automotive manufacturer in India, recognized for producing popular vehicles like the i20, Creta, and Venue. The company has steadily increased its market share in the country, making the upcoming IPO an appealing opportunity for those interested in the automobile sector. (PTI)

This is the first time in over 20 years that a carmaker has brought in an initial share sale in India. The last time Indian markets saw an IPO by a carmaker was by Maruti Suzuki's listing back in 2003. With the 2024 IPO, South Korean parent is diluting some of the stake via the OFS route.

• Hyundai Motor India's Rs 27,870-crore initial public offering (IPO) received a steady response on its first day of subscription, with 10% of the total offer subscribed within the first two hours.
• As of 12:20 PM on October 15, the retail portion was 17% booked, with retail investors bidding for 84 lakh shares out of the 4.94 crore shares available. Meanwhile, non-institutional investors had submitted bids for 15 lakh shares, which is 7% of the 2.12 crore shares on offer. (Read More)

Hyundai Motor India's massive IPO has opened for subscription today. In the meantime, the grey market premium (GMP) for its shares has dropped to around Rs 25, indicating only a slight premium over the issue price. This represents a decline of over 89% from its previous high of Rs 570.

• India is happy to share its experience and learning in the field of DPI with other nations, says Prime Minister Modi
• No nation can protect its citizens from cyber threats. We need to collaborate with each other. We need a digital framework, and WTSA need to work in that direction, says PM
• We need to make telecom safer for people, says PM Modi
• Make [telecom] global standards that are inclusive, secure and ready to face any challenge in the future, says PM Modi

• From chip to finished product, we are involved in giving the world a complete mobile phone: Modi
• India deployed fibre optic cable that is 8 times the distance between Earth and the moon: Modi
• India is the second largest 5G market in the world. We are now working on 6G with speed: Modi
• The kind of telecom reforms and innovation India has carried out so far remain unprecedented: Modi
• ONDC will bring a revolution to digital commerce: Modi

• “From silk route to tech route, India's mission has always been to connect the world and open new ways of progress,” says PM Modi
• “In today's world full of conflict, consensus and connectivity are important,” says PM Modi
• “We have made telecom a medium for equity and opportunity,” says PM Modi

• “Vi's FPO was the largest of its kind in India, we had received more than 90,000 crore bids. The response was an emphatic endorsement of the potential of Indian telecom sector,” says Kumar Mangalam Birla
• “The fundraise has enabled Vi to kickstart again in capex cycle,” says Kumar Mangalam Birla Vi
• “With continued support from the government, I am confident that we will do our part to realise the Prime Minister's Digital India destiny,” says Birla (Read More)

• “Govt has consistently recognised the importance of digital connectivity and has introduced several reforms over the years,” says Kumar Mangalam Birla
• “Digital transformation moving beyond larges businesses to our SMEs,” says Kumar Mangalam Birla
• “We at Vodafone Idea are committed to providing max support by promoting digital transformation to India's small businesses with a focus on technologies like 4G, IoT, AI and Cloud,” says Kumar Mangalam Birla
• “We can create a thriving digital ecosystem that can empower our MSMEs to drive India's economic growth,” says Kumar Mangalam Birla”
• “Vodafone Idea is making significant strides in combating spam and fraud,” says Kumar Mangalam Birla

• PM Modi never rests on his laurels, you achieve something and he will give you a bigger task to do: Mittal
• It is impossible for terrestrial services to cover every square inch of any country, with launch of LEO networks, now we have the possibility of connecting 4G speeds and massive capacities in the hands of those who have been left behind: Mittal
• With the launch of satcom services in India, anybody, anywhere in the country, however remote or under challenging conditions they may be, will be able to connect on a fast network similar to 4g/5G: Mittal
• I would like to draw attention of PM Modi that intertemporal choices will have to be made as to how satellite needs to coexist with terrestrial networks: Mittal

• India lost the manufacturing race in previous 20-30 years to China and other parts of the world, and that call to action has resulted in India becoming a major manufacturing hub: Sunil Mittal, Bharti Enterprises
• In the next 15-18 months, each and every part of the country will be connected to a very powerful 5G network: Mittal (Read More)

‘We request the government to expedite the updating of the 2020 draft of the data center policy so that Indian data should remain in India data centers,’ says Akash Ambani (Read More)

• India was crawling at 2G speed and now galloping down the 5G highway, and India will have even a better record in 6G: Akash Amban
• India’s digital revolution has spread to the remotest corners of the nation: Akash Ambani
• Jio has played a significant part in this remarkable transformation: Akash Ambani
• With AI, India has the potential to completely transform the manufacturing centers, including SMEs so that India becomes a new age factory and new age service centers for the world: Akash Ambani
• We are committed to democratising AI, offering powerful AI models and services to everyone at affordable prices: Akash Ambani

PM Narendra Modi inaugurates World Telecommunication Standardisation Assembly at Bharat Mandapam

Vodafone Idea is nearing the end of its multi-year IT outsourcing deals, which will bring in new players to take over parts of the previous agreement with US tech giant IBM. Sources closer to the discussions told Moneycontrol that the new contacts would be finalised within the next 10 days. According to sources, the renegotiated deal will decrease Vodafone Idea's dependence on IBM. The telecom company has chosen to involve more vendors to decrease the overall operating costs and to work with specialised firms in specific areas, rather than renewing the entire agreement with IBM alone. (Read More)

When looking at most of the brokerages, the trend seems to be indicating at limited listing gains from Hyundai's jumbo IPO. The brokerages feel that the company is likely to give robust double-digit returns in long-term period. If looking at absolute numbers, as many as eight brokerages have given as rating of 'subscribe' for the Hyundai IPO. This is specifically for those looking for long-term investment.

• Garuda Construction and Engineering shares made a solid debut on the stock market on October 15, opening at Rs 105, which represents a 10.5% premium over the issue price of Rs 95 per share on the BSE.
• These listing gains exceeded grey market estimates, where shares were trading without any premium. The grey market is an unofficial arena where shares begin trading well before the subscription offer opens and continue until the listing day. (Read More)

While the bidding for the Hyundai IPO can be done till October 17, the basis of allotment will be finalised by October 18.

HDFC Asset Management Company and ICICI Prudential Mutual Fund via their several schemes picked Rs 366.5 crore worth shares each in Hyundai's mega IPO, the company said in a regulatory filing.

Since the time we are tracking, the highest grey market premium for the IPO for Hyundai India was Rs 570. In last 10 days, the GMP of Hyundia IPO has tanked to Rs 45.

As we told you just now, the grey market premium of Hyundai IPO right now is Rs 45. This shows a marginal listing gains of less than three percent. So, what's the reason behind the crash? Experts say that recent market correction as well as somewhat steep price band and expensive valuation are said to be the likely cause behind the Hyundai GMP crash.

According to the data updated by invetsorgain.com, Hyundai Motor IPO latest grey market premium stands at Rs 45. With the price band of Rs 1960, Hyundai's estimated listing price is Rs 2,005 (cap price + today's GMP). The expected percentage listing gains per share has been pegged at 2.30%.

Out of the 4.24 crore equity shares allotted to anchor investors, approximately 1.46 crore shares (or 34.42% of the total allocation) were assigned to 21 domestic mutual funds across 83 schemes.

According to the exchange filing, HMIL allotted 4.24 crore shares to 225 anchor investors at a price of Rs 1,960 per share, which includes a share premium of Rs 1,950 per equity share.

The Korean parent, the world’s third-largest original equipment manufacturer, plans to use the IPO proceeds to invest in new products, technology, and research, which could benefit its Indian operations in the long run.

Hyundai Motor India's IPO, structured as an offer for sale (OFS), involves its Korean parent offloading 14.2 crore shares, with none of the proceeds going to the Indian unit. This has raised concerns about whether the IPO justifies the hype, as the funds won’t contribute to the company’s immediate growth.

At present, all passenger vehicles and parts are manufactured solely at the Chennai plant. Any disruptions or halts in production, including at the Talegaon facility once it becomes operational, could negatively impact the company’s overall performance and financial condition

Kia Corporation and Kia India Private Limited have registered a significant presence in the automobile sector. Part of the same group, the overlapping businesses of Kia may give way to some sort of conflicts of interest. Such a scenario may impact Hyundai Motor India.

Hyundai is seeking a price-to-earnings (PE) valuation of 26x its FY25 earnings, whereas Maruti Suzuki is trading at a PE of 22x for the same period. This valuation exceeds the industry average of 24.41x and is significantly higher than Hyundai Motor Global's PE of 5x.

Many market watchers feel that the price band for Hyundai IPO, which is set at Rs 1,960 at the upper end, is slightly steep.

Hyundai's Rs 27,870 crore IPO is viewed as offering limited valuation comfort when compared to Maruti Suzuki, which has nearly three times the passenger vehicle market share, two-and-a-half times the sales volume, and comparable profitability.

So, who were the global as well as domestic public market investors with which the automaker held discussion? These were Capital Group arms, GIC, Baillie Gifford, Government Pension Fund Global (Norges Bank Investment Management), Fidelity Group arms, T Rowe Price, BlackRock, and HDFC MF, SBI MF, Nippon India MF, ICICI Prudential MF, Axis MF, Kotak MF. Hyundai held several rounds of talks for the participation by these players in its anchor book

On October 9, Moneycontrol was the first to report that Hyundai had discussions with over 100 leading global and domestic public market investors regarding their participation in its anchor book.

In case you are joining us just now, we are tracking India's largest ever IPO - Hyundai Motor India. With lot of volatility in the GMP trend, we take a look at what's the IPO size, allotment date and listing schedule. Stay with us for top updates on Hyundai IPO.

The IPO consists of entirely offer-for-sale of 14.2 crore equity shares by its parent firm Hyundai Motor Company. The automobile company targets to Rs 27,870.2 crore through maiden public issue at the upper price band.

The firm has reserved 7,78,400 equity shares for its employees. They will get those shares at a discount of Rs 186 per share to the final issue price.

Hyundai Motor India will open its Rs 27,870-crore ($3.3 billion) initial public offering for subscription on October 15 with a price band at Rs 1,865-1,960 per share. The last day for bidding will be October 17.

The basis of allotment of Hyundai Motor India IPO shares will be finalised by October 18, while its equity shares will be available for trading on the stock exchanges effective October 22.

Hyundai Motor India, the country's second-largest car maker, has mobilsed Rs 8,315.3 crore from 225 anchor investors on October 14, a day before the public issue opening.