Hyundai Motor IPO Ahead: Apply or Avoid? Best 10 Points to consider

India’s biggest Upcoming IPO is going to be South Korean parent company Hyundai Motors India IPO which is going to be open for bidding on 14th October 2024. Hyundai Motor India IPO issue size is for ₹25000 crore, and the amount makes it the largest IPO since LIC  IPO of issue size of ₹21,000 Crore. 

Is this IPO worth investing? Here, let’s try to find the best answer. 

Hyundai Motor IPO Details
Hyundai Motor IPO Details

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Hyundai Motor IPO Details:

Latest GMP of IPO Hyundai: Between ₹300 and ₹305

Estimated Listing Gain: 16% approximately.

Price Band: ₹1900-₹1960

Offer Date: 15th October to 17th October 

Lot Size: 7 Shares/Lot

Allotment Date: 18th October, 2024

Listing Date: 22nd October, 2024.

Issue Type: Book Building

Listing on: NSE and BSE

Registrar: Kfintech

Now what are the 10 negatives that must be considered before investing.

Hyundai Motor India IPO Weak Points

Hyundai Motor IPO
Hyundai Motor IPO

1] All the IPO issue size is Offer for Sale: Promoters are selling 142,194,700 equity shares are

2] NO Fresh Issues: The biggest negative points that makes the IPO less lucrative for the Indian investors.

3] Objectives of the IPO: Promoters will receive all the proceeds from the offer for sale and the company won’t receive  any.

4] Weak contribution in Global Market: Hyundai Motor Indian Unit contributes only 6.5% of global revenue.

5] Offer Price higher valuation: Hyundai Motor will surely try to take advantage of India’s higher valuations.

6] Lower valuation in South Korea: In South Korea Hyundai Stock Price valuation is less than in the Indian market.

7] Not Debt Free: The IPO funds will not be used to repay the debt of the company.

8] Doesn’t have a stake in Kia Motors in India.

9] Not significant growth in ROE, ROCE, and Net Worth, Etc.

10] Last but not the least: Hyundai Motors India is expected to be valued at the 42+% of the parent company’s market capitalization upon listing. 

Click for more update about Hyundai IPO, visit NSE official Website

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