Hyundai Motor India GMP Drops To Rs 38 Ahead Of IPO Launch, Barely Marks 2% Premium

Hyundai Motor India is set to launch its initial public offering on Tuesday, allowing investors to subscribe until Oct. 17. As of 1:55 p.m. on Wednesday, the company's shares are trading with a grey market premium of Rs 38, representing a modest 1.94% premium over the upper end of the price band set at Rs 1,960.

This marks a significant decline from a GMP of Rs 570 just two weeks ago when the shares began trading in the unlisted market.

This IPO marks a significant milestone, as Hyundai Motor India will become the first automaker to go public in two decades, following Maruti Suzuki's listing in 2003.

The offer will involve Hyundai Motor Global offloading 14.2 crore shares, equating to just over 17% of its stake in the Indian subsidiary. At the upper end of the price band, Hyundai India will be valued at Rs 1.6 lakh crore.

While all proceeds from the IPO will go to the parent company, management has indicated that funds will be allocated for research and development and innovative product offerings.

As the second largest carmaker in India, Hyundai boasts a diverse portfolio of 13 passenger vehicle models, including sedans, hatchbacks and sport utility vehicles. The company aims to enhance its position as Hyundai Motor's largest production hub in Asia, leveraging its local manufacturing capabilities. It operates two production facilities in Chennai with a combined capacity of 8.24 lakh units per year and is currently running at over 90% capacity utilisation.

For the quarter ending June 2024, Hyundai Motor India reported revenue of Rs 17,344 crore as compared to Rs 16,624 crore in the same quarter last year. The company’s net profit for the quarter reached Rs 1,489.7 crore from Rs 1,329.2 crore the previous year.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.