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The Rs 27,870 crore initial public offer (IPO) of Hyundai India, which opened for subscription on Tuesday, was subscribed 37% so far on the second day of the bidding process. The issue received nearly 3.7 crore consolidated share bids versus 9,97,69,810 shares available for subscription.Retail investors led the way, subscribing to the issue by 37%, followed by the non-institutional investors, who booked the issue by 23% so far. The portion reserved for the qualified institutional buyers (QIBs) attracted 1.27 crore shares bids or 45% against 2,82,83,260 shares reserved for them.The issue is completely an offer for sale (OFS) of 14.2 crore shares, which will be offloaded by the company's parent Hyundai Motor Global. Since the IPO is an OFS, all the proceeds will go to the selling shareholder.Even though the entire proceeds from the IPO will go to the parent company, the management said funds will be used for research and development and new innovative offerings.Hyundai India IPO price bandThe company has fixed a price band of Rs 1,865-1,960 per share, where investors can bid for 7 shares in one lot.Hyundai India IPO GMPIn the unlisted market, Hyundai's shares were trading at Rs 35-36 ahead of the IPO opening, reflecting a 2% premium over the issue price, down from a 3% premium earlier. In early trade today, the GMP was 3% higher, trading at Rs 65 above the issue price.Also Read: Cochin Shipyard shares fall 5% as two-day OFS beginsHyundai India IPO reviewMost analysts advised investors to subscribe to the IPO for the long term, given that the company has strong brand presence in India and is well poised to capture growth opportunities in the passenger car market."We assign subscribe rating on Hyundai given steady growth prospects amid industry tailwinds, robust financials & healthy SUV product slate. We expect limited listing gains to this IPO, however expect the company to deliver healthy double-digit portfolio returns over the medium to long term," said ICICI Direct."At the upper band, the company is valuing at 26.2x its FY24 earnings along with being valued at 26.7x if we annualize FY25 earnings. We believe that the issue is fully priced and recommend Subscribe – Long Term rating to the IPO," said Anand Rathi.Other detailsHyundai is the second largest carmaker in India with a portfolio of 13 passenger vehicle models across sedans, hatchbacks and SUVs. The company aims to leverage its strong local manufacturing capabilities to position itself as Hyundai Motor's largest production base in Asia.It operates two production facilities in Chennai with a combined installed capacity of 8.24 lakh units per annum and is currently running at over 90%+ capacity utilization.For the quarter ending June 2024, Hyundai Motor India reported a revenue of Rs 17,344 crore, marking a growth from Rs 16,624 crore in the same period last year. Of the total revenue, 76% was derived from the domestic market, while exports accounted for 24%.The company's net profit for the quarter stood at Rs 1,489.65 crore, compared to Rs 1,329.19 crore in the previous year.Kotak Mahindra Capital, Citigroup Global, HSBC Securities, JP Morgan, and Morgan Stanley are the book running lead managers to the issue, while KFin Technologies is the registrar to the offer.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

The earnings growth of banks will continue to be weak even in the September quarter, continuing the trend seen in recent quarters. However, the quarter is expected to be better compared with the preceding June quarter, led by private banks due to higher fees and lower provisions sequentially.The subdued numbers for the lenders will be driven by muted net interest income (NII) due to slowdown in loan growth. However, asset-quality metrics should be less worrisome, barring lenders exposed to the microfinance sector, analysts said."Provisional business data released by a cross-section of banks suggest that loan growth has slowed, with the emphasis shifting to lowering the credit-to-deposit ratio," said Kotak Equities.The slower earnings trend will likely be seen for both public and private sector lenders. Private banks are expected to report a PAT growth of just 3% year-on-year, according to ICICI Securities. Meanwhile, NII growth for the July-September 2024 period is seen around 11% year-on-year.Among the private banks, Motilal Oswal projects Bandhan Bank to lead the peers with a growth at 24% year-on-year, followed by IDFC Bank at 23% year-on-year and Federal Bank at 16% year-on-year.HDFC Bank, the market leader in the private lending space, reported a slowing loan growth of 7% year-on-year, with the bank choosing to slow down or securitize the portfolio.The net interest income (NII) for the Bank is likely to grow around 10% year-on-year, while PAT may rise by a modest 2% year-on-year.For public sector lenders, NII growth will likely remain moderate at 6% year-on-year as margins maintain a marginal downward bias. State Bank of India (SBI) will, however, continue its strong show from the last few quarters with 17% PAT growth and 6% rise in NII.Which stocks to buyAnalysts said valuations remain close to long-term averages and banks remain one of the few pockets of value. Notwithstanding the valuation argument, JM Financial sees growth (NII, PPOP) and asset quality to be more critical factors for sector re-rating.The brokerage continues to prefer larger banks and its key picks are ICICI Bank, Axis Bank and SBI.Meanwhile, Nomura is bullish on stocks with stronger underwriting capabilities and lower exposures to segments where credit cost is likely to go up (especially unsecured retail and microfinance).We also have a preference for banks that have lower deposit-led growth pressures. In that context, our top picks remain ICICI Bank, SBI, Kotak Mahindra Bank and Federal Bank.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Mumbai: Hyundai Motor India's ₹27,870 crore initial public offering (IPO) - India's largest-ever - was subscribed 0.18 times on Tuesday, the opening day of the public issue.The non-institutional investor (NII) portion, primarily high-net-worth individuals, was subscribed 0.13 times, while the retail investor portion saw a subscription of 0.26 times. The portion reserved for the company's employees, offered at a discount of ₹186 per share, was subscribed 0.8 times (80%).Meanwhile, the qualified institutional buyer (QIB) portion was subscribed 0.05 times, though institutions typically place bids on the final day of the subscription period. 114265968The IPO, priced between ₹1,865 and ₹1,960 per share, will remain open for subscription until Thursday.Around 35% of the total shares in the offering are reserved for retail investors, while QIBs and NIIs are offered 50% and 15% of the issue size, respectively.Hyundai Motor India, the country's second-largest passenger car manufacturer after Maruti Suzuki, raised ₹8,315 crore (roughly 30% of the IPO size) on Monday from 225 anchor investors, led by funds owned by the Singapore government, among others.

ET Intelligence Group: The stock of Reliance Industries (RIL) lost 2% on Tuesday from the previous day's close following a weaker set of second-quarter financial numbers and concerns over rising net debt on its balance sheet. The company's refining and petrochemicals (O2C) business reported a sharp fall in margins amid lower global demand even as it attracted higher capital expenditure (capex) during the quarter while the consumer-focused businesses including retail and digital delivered numbers below analysts' estimates.The retail segment was affected by a demand slack in the fashion and lifestyle (F&L) vertical and a sequential decline in total store area. The digital segment reported a sequential drop in subscriber numbers amid tariff hikes and higher average revenue per user (ARPU). In the near term, economic impetus in China, winter demand in the West and firm petrochemicals demand in India are key positives for the O2C segment while rising geopolitical tensions may heighten volatility in the global crude oil market.114265940RIL's net debt increased by ₹4,097 crore sequentially to ₹1,16,438 crore at the end of the September quarter while capex rose to ₹34,022 crore from ₹28,785 crore in the previous quarter.The conglomerate's consolidated revenue increased by 0.8% year-on-year to ₹2,58,027 crore while net profit fell by 2.8% to ₹19,323 crore, marking a second consecutive quarter of decline. The operating profit before depreciation and amortisation (Ebitda) fell by 2% to ₹43,934 crore, dragged down by a 23.7% fall in the Ebitda of the O2C division. This segment contributed 60% to the consolidated revenue and 28.3% and Ebitda. "Demand scenario for refining business has turned bearish over the last couple of months along with petrochemical margins," noted ICICI Securities in a review report adding that overall O2C prospects remain tepid for the next 12-18 months.According to JM Financial Research, the implied gross refining margin for RIL's refining activities was lower at $7.1 per barrel compared with $ 7.7 per barrel in the previous quarter.Among the consumer-facing businesses, the revenue of Jio Platforms increased by 17.7% YoY to ₹37,119 crore while net profit rose by 23.4% to ₹6,536 crore. While the subscriber base improved by 4.2% YoY to 478.8 million, it fell by 2.2% sequentially following tariff increases. The ARPU improved by 7.4% sequentially and YoY to ₹195.1.The retail segment's revenue dropped by 1.1% YoY to ₹76,302 crore whereas net profit rose by 5.2% to ₹2,935 crore. On a sequential basis, while the number of stores increased by 28 to 18,946, the area under operation reduced to 79.4 million square feet from 81.3 million square feet implying consolidation of larger store formats.Some analysts have reduced RIL's earnings estimates after the Q2 results. "We reduce FY25 and FY26 EPS by 14% and 8%, led by lower refining and petrochemicals margins," said Elara Securities. The firm has pared the target price to ₹3,265 from ₹3,636 while reiterating the "accumulate" call.

The festive season could see the launch of more than '1 lakh crore worth of residential projects in Delhi-NCR, with developers having delayed new launches till the formation of the Haryana government and the festive period. While housing sales have been rising for the last two years, the July to September quarter saw an 11% dip.Listed developers such as DLF, Signature Global, TARC, and Max Estates have launched large-scale projects in Gurugram. Others including M3M, Smartworld, Trident Group, Central Park, Paras, County Group, Gaurs Group, and Adani Realty are also in the process of launching new housing projects in Noida and Gurugram."Traditionally, the Indian festive season is considered an ideal time to invest in wealth-creating assets. This year, the sector is poised to see a substantial rise in demand for homes, especially with a wave of new luxury launches attracting high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs), and significant investments from the NRI community," said Aakash Ohri, joint MD and chief business officer, DLF Homes.DLF is launching an ultra-luxury project with a targeted sales value of '34,000 crore, about 2.5 times the value of its Camellias project in Gurugram, or any other realty project in India.The sales value of DLF's upcoming The Dahlias project would be equivalent to that of Three Sixty West by Oberoi Realty in Mumbai, DLF Camellias in Gurugram, and Naman Xana in Mumbai. The apartments would have a starting size of 9,500 square feet.The new project is expected to substantially boost DLF's market share. According to PropEquity, DLF held a 25% market share in the ultra-luxury segment (properties priced above '25 crore) over the last five years."The Gurugram real estate market is already heating up in anticipation. Areas like Golf Course Extension Road and Dwarka Expressway are emerging as prime hotspots, driven by infrastructure upgrades and a growing demand for luxury homes," said Vivek Singhal, CEO, Smartworld Developers. Smartworld Developers recently sold 900 residential units in its latest luxury project in Sector 69, Gurugram, featuring high-end apartments priced between '4-5 crore each.Gaurs Group also sold 1,200 luxury apartments in Ghaziabad, with a total value of Rs 3,000 crore.Max Estates reported Rs 4,100 crore in pre-sales from its first residential development in Gurugram, while Signature Global posted its best-ever half-year pre-sales, totalling Rs 5,900 crore in H1FY25, reflecting a 217% year-on-year growth.