Hyundai Motor India IPO - Subscribe For Long Term, Says Motilal Oswal

Motilal Oswal Report

Hyundai Motor India Ltd. launched its initial public offering today and the offer closes for subscription on Oct. 17. The Rs 14.2 crore Ipo comprises of pure offer-for-sale component.

The company has fixed the price band in the range of Rs 1,865-1,960 apiece to raise up to Rs 27,870 crore. Bids can be made in the lot size of seven shares or multiples thereof.

We recommend ‘Subscribe for long term’. At the upper price band of Rs 1960, the issue is priced at 26.3 times FY24 P/E and looks reasonably priced compared to Maruti which is trading at 29.8 times.

We expect Hyundai Motor India to be a key beneficiary of growth in passenger vehicle segment due to its strong presence in the SUV segment. It is also planning a slew of launches in the EV space.

The company has planned an overall capex of Rs 320 billion to develop capabilities in EV (including battery assembly and charging stations) and ramp up overall manufacturing capacity over FY23-32.

Click on the attachment to read the full IPO report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.