Hyundai IPO: Finally India’s biggest IPO
India’s Hyundai IPO, worth Rs 2787 crore, is now underway. All investors are expected to receive an ample allotment. All the important information related to this IPO is now available.
Key details of IPO
Although, earlier it was expected that the gray market premium would run between Rs 800 to Rs 1000, now the price band has come down to Rs 1960. This has made the premium a bit expensive.
Grey market situation
According to earlier estimates, the IPO price was expected to reach Rs 1200-1300. Now the gray market premium is around Rs 900 to Rs 1000, but due to the latest price band, it has come down. Now the premium has come down to only ₹ 10.
Company Introduction
Hyundai, established in 1996, is one of the third largest automobile original equipment manufacturers in the world. This IPO requires 815 applications, with 15 lots in the Small AAI category.
Application Process
Keep in mind that usually, I say there is no use applying more than one lot in Small AAI or Retail. But if you have to apply in this IPO and if a category is not fully subscribed, you can apply in multiple lots.
Financials Overview
The company has total assets of more than Rs 25000 crore. Revenue is projected to grow by 16% in 2023-2024, and PAT (Profit After Tax) is projected to grow by 29%, to more than Rs 6000 crore.
Market Cap and Valuation
The IPO size is Rs 2787 crore and is entirely an Offer for Sale. The P/E ratio is around 73.3, while key competitor Maruti has a P/E ratio between 11-30.
Risk Factors
Legal disputes, dependence on suppliers, and related party transactions are potential risks that may increase the risk factor.
Investor Opinion
Investors may have two types of opinions about this IPO. First, only two of the previous big IPOs have been profitable, while the rest have resulted in losses for investors. On the other hand, some investors consider it expensive and believe that the company can perform well in the long term.
Conclusion and Your Opinion
If you do not have a demat account yet, please open one by visiting the link. What is your opinion about this IPO? Share your thoughts in the comments!
Stay tuned for more information and updates as the Hyundai IPO launch comes closer. Do you think this IPO will be successful or not? Your opinion is important to us!