The lacklustre debut of one of the most anticipated initial public offerings (IPOs) - Hyundai Motor India - failed the expectations of experts and left investors worried if they should hold their investments or try to cut their losses early.

The lacklustre debut of one of the most anticipated initial public offerings (IPOs) - Hyundai Motor India - failed the expectations of experts and left investors worried if they should hold their investments or try to cut their losses early. The shares of Hyundai Motor India were listed in the stock market at Rs 1,960, which was a 1.5 per cent discount on their issue price. The stock debuted at Rs 1,934 on the National Stock Exchange (NSE) and Rs 1,931 on the Bombay Stock Exchange (BSE), which was lower than the suggestion of the grey market premium (GMP). The Rs 27,870 crore IPO had achieved full subscription only on the last day, which was a reflection of retail investors' cautious approach. Explaining this slump in performance of the IPO to WION, Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers, said, "I think the valuation was a major setback for the investors, especially the retail investors, who generally look for some listing gains as well apart from medium to long-term gains. The IPO was fully priced at the upper band and there was hardly any room left for listing gains." Also Read: Money-Wise: Do IPO investments promise assured returns? Here are the risks you must know about What should be the next step for Hyundai IPO's investors? Now that the IPO has made its debut in the market, many investors have been worried about what should be the next step. Solanki suggested that remaining invested in the IPO is not that bad an idea. "I think the investors could continue to remain invested as there is nothing fundamentally wrong with the business as the company is second largest domestic player and also largest player when it comes to export volumes. Also, the future lineup of launches, especially the EV line, should also add to the market share in this space and the company should do well in the long term," he said. Watch: Mega IPOs With Lower Returns Spur Worries But does the lacklustre opening of the Hyundai IPO hint at a waning enthusiasm among investors to invest in IPOs? "I don't think so, as we have seen other IPOs getting subscribed very well, and the response was very good. I think the primary market would continue to remain healthy and buzzing and see no major risks," emphasised Solanki. Can investors know the future of IPO ahead of its debut? Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers, shared some tips which can help investors recognise IPOs that may not perform well in the market. The valuations and overall business outlook in the near term play a significant role as far as listing gains are concerned. Companies that price their IPOs at reasonable valuations gather much attention from retail investors. The overall quality of earnings and balance sheet also impacts the IPO prospects.

Money-Wise: Hyundai IPO falls flat on D-Street. What should be the next step for investors?

South Korea's Hyundai Motor Company plans to sell up to 17.5 per cent of its stake in Hyundai Motor India Ltd (HMIL) through an initial public offering (IPO). This IPO could raise between $2.5 billion and $3 billion, potentially setting a new record as India's largest IPO to date.&nbsp;

Hyundai is expected to file the necessary documentation with the Securities and Exchange Board of India (SEBI) as early as Friday. Once approved, the listing will take place on the Bombay stock exchange. This offering marks Hyundai's first listing outside of South Korea. Unlike typical IPOs, no new shares will be issued. Instead, the South Korean parent company will divest part of its existing stake in HMIL through an "offer for sale" route.&nbsp;

Investment banks including Kotak Mahindra, Citibank, Morgan Stanley, JP Morgan, and HSBC are onboard to facilitate this significant financial transaction. The final approval from SEBI is anticipated within 60 to 90 days, suggesting the IPO could go live by September or October.&nbsp;

In FY23, HMIL reported revenues of approximately Rs 60,000 crore and profits of Rs 4,653 crore, making it the most profitable non-listed car manufacturer in India. The company sold 614,717 passenger vehicles in 2023-24, representing an 8.3 per cent year-on-year growth and holding a 14.6 per cent share of the domestic market. &nbsp;

The IPO aims to leverage the burgeoning market potential in India, where Hyundai has been a significant player for over 27 years. Known for popular models like the Santro and Creta, HMIL is the second-largest carmaker in India, trailing only Maruti Suzuki.&nbsp;

The funds raised from the IPO will support Hyundai’s extensive expansion and innovation plans in India. Key initiatives include:&nbsp;

Capacity expansion: Hyundai plans to enhance production capabilities at its existing plants and the newly acquired Talegaon plant from General Motors.&nbsp;

Electric vehicle development: The company will invest in the development and manufacturing of electric vehicles (EVs), targeting both affordable and premium segments. Plans also include setting up a charging network and a battery manufacturing unit.&nbsp;

Cell manufacturing: Establishing cell manufacturing facilities in India to reduce the costs of EV production.&nbsp;

Export enhancement: Increasing exports from India to position the country as a strong global manufacturing hub.&nbsp;

Despite the optimistic outlook, Hyundai acknowledges several risks in its IPO filing. These include its dependence on the South Korean parent company for funds and strategic direction, and the potential reduction of government incentives for EV manufacturers. Listing these risk factors is a regulatory requirement and highlights the challenges Hyundai might face in its growth trajectory.&nbsp;

This IPO, if successful, will surpass the previous record set by the state-owned Life Insurance Corporation of India's $2.7 billion IPO in 2022. Hyundai's decision to go public in India comes as the country becomes an increasingly important market, contributing about 14 per cent of Hyundai's total global sales in 2023.&nbsp;

South Korea's Hyundai Motor Company plans to sell up to 17.5 per cent of its stake in Hyundai Motor India Ltd (HMIL) through an initial public offering (IPO). This IPO could raise between $2.

South Korea's Hyundai Motor Company plans to sell up to 17.5 per cent of its stake in Hyundai Motor India Ltd (HMIL) through an initial public offering (IPO). This IPO could raise between $2.5 billion and $3 billion, potentially setting a new record as India's largest IPO to date. Hyundai is expected to file the necessary documentation with the Securities and Exchange Board of India (SEBI) as early as Friday. Once approved, the listing will take place on the Bombay stock exchange. This offering marks Hyundai's first listing outside of South Korea. Unlike typical IPOs, no new shares will be issued. Instead, the South Korean parent company will divest part of its existing stake in HMIL through an "offer for sale" route. Investment banks including Kotak Mahindra, Citibank, Morgan Stanley, JP Morgan, and HSBC are onboard to facilitate this significant financial transaction. The final approval from SEBI is anticipated within 60 to 90 days, suggesting the IPO could go live by September or October. In FY23, HMIL reported revenues of approximately Rs 60,000 crore and profits of Rs 4,653 crore, making it the most profitable non-listed car manufacturer in India. The company sold 614,717 passenger vehicles in 2023-24, representing an 8.3 per cent year-on-year growth and holding a 14.6 per cent share of the domestic market. The IPO aims to leverage the burgeoning market potential in India, where Hyundai has been a significant player for over 27 years. Known for popular models like the Santro and Creta, HMIL is the second-largest carmaker in India, trailing only Maruti Suzuki. The funds raised from the IPO will support Hyundai’s extensive expansion and innovation plans in India. Key initiatives include: Capacity expansion: Hyundai plans to enhance production capabilities at its existing plants and the newly acquired Talegaon plant from General Motors. Electric vehicle development: The company will invest in the development and manufacturing of electric vehicles (EVs), targeting both affordable and premium segments. Plans also include setting up a charging network and a battery manufacturing unit. Cell manufacturing: Establishing cell manufacturing facilities in India to reduce the costs of EV production. Export enhancement: Increasing exports from India to position the country as a strong global manufacturing hub. Despite the optimistic outlook, Hyundai acknowledges several risks in its IPO filing. These include its dependence on the South Korean parent company for funds and strategic direction, and the potential reduction of government incentives for EV manufacturers. Listing these risk factors is a regulatory requirement and highlights the challenges Hyundai might face in its growth trajectory. This IPO, if successful, will surpass the previous record set by the state-owned Life Insurance Corporation of India's $2.7 billion IPO in 2022. Hyundai's decision to go public in India comes as the country becomes an increasingly important market, contributing about 14 per cent of Hyundai's total global sales in 2023.

Hyundai's bold $3 billion IPO: Game changer for India's auto market?

South Korean automaker, Hyundai Motor, is gearing up for a groundbreaking move in the Indian market, eyeing an Initial Public Offering (IPO) for its Indian unit. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

This potential IPO, slated to be the largest in the country, aims to raise at least $3 billion, sources familiar with the matter reported on Friday. <o:p></o:p>

The move comes as Hyundai intensifies its focus on the Indian market, anticipating increased competition with the impending entry of electric vehicle giant, Tesla.<o:p></o:p>

Early talks and potential valuation<o:p></o:p>

Hyundai Motor India has initiated preliminary discussions regarding the IPO with various banks.<o:p></o:p>

&nbsp;The IPO could potentially value Hyundai's Indian operation at up to $30 billion, more than half of its current market capitalisation of $42 billion in Seoul. <o:p></o:p>

The announcement triggered a surge in Hyundai's shares, climbing 5 per cent to reach their highest point in nearly three years on Monday. <o:p></o:p>

This valuation would position Hyundai's India unit behind industry counterparts like Tata Motors and Maruti Suzuki India.<o:p></o:p>

"They want to make use of India's IPO boom. India's capital markets have hardly stood out like this before compared to other countries," Reuters quoted one of the sources familiar with the matter.<o:p></o:p>

India's capital market surge and IPO boom<o:p></o:p>

India's stock market, valued at $4 trillion, has emerged as a robust alternative to China, surpassing Hong Kong to become the fourth-largest globally. <o:p></o:p>

With the Nifty 50 index rising by 20 per cent in 2023 and continuing its record-breaking run into 2024, India's capital market has become a focal point for domestic and foreign investments. <o:p></o:p>

The second half of 2023 witnessed a surge in IPOs, a trend anticipated to persist in 2024, driven by expectations of policy stability.<o:p></o:p>

&nbsp;Hyundai's potential IPO aligns with this trend, positioning the company to leverage India's flourishing capital markets.<o:p></o:p>

Hyundai's IPO talks with major investment banks<o:p></o:p>

In its pursuit of an Indian IPO, Hyundai has engaged in discussions with prominent investment banks such as JP Morgan, Morgan Stanley, Citi, and Bank of America. <o:p></o:p>

While formal appointments are yet to be made, these talks reflect Hyundai's commitment to exploring all options for its India business. <o:p></o:p>

Hyundai's move follows a pattern of companies like SoftBank-backed Ola Electric and Swiggy, expected to go public in 2024. <o:p></o:p>

Although there has been no official comment from the mentioned banks, Hyundai's plan is gaining momentum in the financial sector.<o:p></o:p>

Hyundai's India push and competition with Tesla<o:p></o:p>

Hyundai, India's second-largest car maker by sales, has been strategically reinforcing its presence in India and the United States, redirecting focus after scaling back production in China and exiting the Russian market. <o:p></o:p>

Entering India over two decades ago, Hyundai is the only foreign player to have secured a significant market share alongside Maruti Suzuki. <o:p></o:p>

Hyundai's move to go public comes at a crucial juncture as it faces growing competition from domestic players like Tata Motors.<o:p></o:p>

&nbsp;Analysts speculate that the IPO could enhance Hyundai's position against Tesla in the Indian EV market.<o:p></o:p>

"Hyundai's India unit IPO talks come amid Tesla's plan to enter India, and if Hyundai's unit manages to go public in the country, it might help Hyundai better compete with Tesla in the Indian EV market in the future," noted industry analysts.<o:p></o:p>

Future investments in India's EV market<o:p></o:p>

Hyundai has outlined ambitious plans for the Indian market, announcing intentions to invest close to $4 billion over the next decade. <o:p></o:p>

These funds are set for launching new electric vehicles, expanding charging infrastructure, and establishing a battery pack assembly unit. <o:p></o:p>

Notably, part of this investment involves acquiring a former General Motors plant, a strategic move to bolster production capacity in India. <o:p></o:p>

Currently, Hyundai manufactures cars at its Chennai plant, often referred to as the "Detroit of Asia".<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

South Korean automaker, Hyundai Motor, is gearing up for a groundbreaking move in the Indian market, eyeing an Initial Public Offering (IPO) for its Indian unit.

South Korean automaker, Hyundai Motor, is gearing up for a groundbreaking move in the Indian market, eyeing an Initial Public Offering (IPO) for its Indian unit. This is based on a Reuters report. This potential IPO, slated to be the largest in the country, aims to raise at least $3 billion, sources familiar with the matter reported on Friday. The move comes as Hyundai intensifies its focus on the Indian market, anticipating increased competition with the impending entry of electric vehicle giant, Tesla. Early talks and potential valuation Hyundai Motor India has initiated preliminary discussions regarding the IPO with various banks. The IPO could potentially value Hyundai's Indian operation at up to $30 billion, more than half of its current market capitalisation of $42 billion in Seoul. The announcement triggered a surge in Hyundai's shares, climbing 5 per cent to reach their highest point in nearly three years on Monday. This valuation would position Hyundai's India unit behind industry counterparts like Tata Motors and Maruti Suzuki India. "They want to make use of India's IPO boom. India's capital markets have hardly stood out like this before compared to other countries," Reuters quoted one of the sources familiar with the matter. India's capital market surge and IPO boom India's stock market, valued at $4 trillion, has emerged as a robust alternative to China, surpassing Hong Kong to become the fourth-largest globally. With the Nifty 50 index rising by 20 per cent in 2023 and continuing its record-breaking run into 2024, India's capital market has become a focal point for domestic and foreign investments. The second half of 2023 witnessed a surge in IPOs, a trend anticipated to persist in 2024, driven by expectations of policy stability. Hyundai's potential IPO aligns with this trend, positioning the company to leverage India's flourishing capital markets. Hyundai's IPO talks with major investment banks In its pursuit of an Indian IPO, Hyundai has engaged in discussions with prominent investment banks such as JP Morgan, Morgan Stanley, Citi, and Bank of America. While formal appointments are yet to be made, these talks reflect Hyundai's commitment to exploring all options for its India business. Hyundai's move follows a pattern of companies like SoftBank-backed Ola Electric and Swiggy, expected to go public in 2024. Although there has been no official comment from the mentioned banks, Hyundai's plan is gaining momentum in the financial sector. Hyundai's India push and competition with Tesla Hyundai, India's second-largest car maker by sales, has been strategically reinforcing its presence in India and the United States, redirecting focus after scaling back production in China and exiting the Russian market. Entering India over two decades ago, Hyundai is the only foreign player to have secured a significant market share alongside Maruti Suzuki. Hyundai's move to go public comes at a crucial juncture as it faces growing competition from domestic players like Tata Motors. Analysts speculate that the IPO could enhance Hyundai's position against Tesla in the Indian EV market. "Hyundai's India unit IPO talks come amid Tesla's plan to enter India, and if Hyundai's unit manages to go public in the country, it might help Hyundai better compete with Tesla in the Indian EV market in the future," noted industry analysts. Future investments in India's EV market Hyundai has outlined ambitious plans for the Indian market, announcing intentions to invest close to $4 billion over the next decade. These funds are set for launching new electric vehicles, expanding charging infrastructure, and establishing a battery pack assembly unit. Notably, part of this investment involves acquiring a former General Motors plant, a strategic move to bolster production capacity in India. Currently, Hyundai manufactures cars at its Chennai plant, often referred to as the "Detroit of Asia". (With inputs from Reuters)

Hyundai's Ambitious Move: Plans $3 billion IPO for the Indian unit

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Money-Wise: Hyundai IPO falls flat on D-Street. What should be the next step for investors?

Hyundai's bold $3 billion IPO: Game changer for India's auto market?

Hyundai's Ambitious Move: Plans $3 billion IPO for the Indian unit