Planning to apply for Hyundai Motor India IPO tomorrow: All you need to know

Hyundai Motor India initial public offering (IPO), India’s largest till date, is set to open for subscription on tomorrow (October 15). The issue will close on October 17. The price range is ₹1,865-1,960 crore and the company plans to raise a total of ₹27,856 crore through the IPO.
Ahead of the mega issue, shares of Hyundai Motor India have seen a significant fall in the grey market as the grey market premium (GMP) of the company fell by over 80% in the last 10 days.
ICICI Direct Research assigned a ‘Subscribe’ rating on Hyundai Motor India attributing it to the company’s steady growth prospects amid industry tailwinds, robust financials and healthy SUV product slate.
“At the upper end of the price band, HMIL will command a valuation of 26 times P/E, 16.5 times EV/EBITDA and 2.3 times P/S on FY24 basis, which is at a tad discount to industry leader i.e. Maruti Suzuki India,” it said.
SBI Securities said that Hyundai Motor India’s strong brand, blockbuster models such as Creta, Alcazar, Venue and Verna, advanced technology and high export potential are key differentiators. The brokerage assigned a subscribe rating to the issue for a long term, noting, “At the upper price band of ₹1,960, Hyundai Motor India is valued at 26.3 times FY24 EPS.”
Arihant Capital assigned a ‘Subscribe for long term’ rating to the issues saying that Hyundai has plans to gradually become a major player in the EV segment, and that it has also recorded one of the highest RoNW among its peers.