Hyundai Motor IPO GMP

September 28, 2024 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

Hyundai Motor India Ltd is poised to make a significant entry into the Indian stock market with its upcoming initial public offering (IPO), aiming to raise up to $3.3 billion. This IPO will mark a historic moment as it is the largest in India’s history and the first by a car manufacturer in two decades, following Maruti Suzuki’s IPO in 2003. The company has set a price range of ₹1,865 to ₹1,960 per share, which values it at approximately $19 billion. The IPO opens for bidding from October 15 to October 17, with shares expected to start trading on October 22.

₹30

Latest IPO GMP

Last updated on 21 Oct 2024 18.33

₹1960

IPO Offer Price

*cut off price

₹1934

Listing Price

Listing Date 22/10/2024

Expert Opinions

Hyundai Motor India’s IPO is entering a favorable market sentiment, characterized by heightened investor enthusiasm for the automotive sector amid India’s economic growth. The company’s strengths lie in its strong brand equity, extensive service network, and innovative product offerings, including plans for electric vehicles.

However, investors should remain vigilant about risks such as intense competition from domestic players and potential supply chain disruptions. Valuation analysis suggests that the IPO price range aligns well with industry standards, positioning Hyundai competitively in the market. From a long-term investment perspective, Hyundai is strategically poised to capture growth in India’s expanding vehicle market, making it an attractive option for investors seeking sustainable returns.

Investor Considerations

Hyundai Motor India’s IPO presents several investor considerations. The company’s performance has been robust, with significant revenue growth and a strong market position as India’s second-largest carmaker. The sector outlook remains positive, driven by increasing demand for passenger vehicles and a shift towards electric mobility. In terms of IPO valuation, the price band of ₹1,865 to ₹1,960 per share suggests a competitive entry point for investors, valuing the company at approximately $19 billion.

Growth prospects are promising, with plans to expand the SUV lineup and introduce India-made electric vehicles. However, investors should be aware of risk factors such as intense competition and supply chain challenges. Finally, for those with a long-term investment horizon, Hyundai’s strategic initiatives and market positioning make it an appealing option in the evolving automotive landscape.