Hyundai IPO: GMP remains strong, should you subscribe?

Hyundai IPO GMP today

The Hyundai Motor India IPO is all set to hit the market on October 19th, 2023. The company is planning to raise Rs 1,500 crore through the issue, which will be used to repay debt and for general corporate purposes. The price band for the IPO has been set at Rs 1,865-1,960 per share.
The issue has been met with strong demand from investors, with the grey market premium (GMP) currently trading at Rs 65 per share. This suggests that investors are expecting the stock to list at a premium to the issue price.
So, should you subscribe to the Hyundai Motor India IPO? Here are a few factors to consider:
1. Strong parent company: Hyundai Motor India is a subsidiary of Hyundai Motor Company, which is the world's fifth-largest automaker. This gives the company access to a strong global network and a wide range of products.
2. Growing Indian passenger vehicle market: The Indian passenger vehicle market is expected to grow at a CAGR of 6.5% over the next five years. This growth is being driven by factors such as rising disposable incomes and increasing urbanization.
3. Attractive valuations: The Hyundai Motor India IPO is priced at a P/E ratio of 18x its FY23 earnings. This is at a discount to the industry average P/E ratio of 20x.
4. Experienced management team: The Hyundai Motor India management team has a strong track record of success. The company has been consistently profitable and has grown its market share in recent years.
Overall, the Hyundai Motor India IPO looks like a good investment opportunity. The company is a leader in the growing Indian passenger vehicle market and is backed by a strong parent company. The issue is also priced at attractive valuations. Therefore, investors may consider subscribing to the issue.