Hyundai Motor India is gearing up to launch what is expected to be the largest initial public offering (IPO) in the history of the Indian stock market. The IPO is scheduled to open on Tuesday, October 15, 2024, with the company aiming to raise ₹27,855 crore, setting a new record for the automobile industry. Hyundai’s robust market presence and solid financial performance have sparked considerable interest from both retail and institutional investors.
This highly anticipated IPO provides an exciting opportunity for those looking to invest, especially given the growing ease of accessing stock markets. Let’s explore the Hyundai IPO, along with how HDFC Sky’s ‘One-Click IPO’ offers an easier path for investors.
By opening demat account online, retail investors can easily engage in Hyundai’s landmark IPO and capitalise on this significant investment opportunity.
Hyundai IPO Details
| Hyundai Motor India IPO Details | Description |
| IPO Type | Offer for Sale (OFS) by Hyundai Motor Company |
| Equity Shares on Offer | 14.21 crore shares |
| Price Band | Rs 1,865 to Rs 1,960 per share |
| Minimum Shares for Retail Investors | 7 shares |
| Minimum Investment Amount | Rs 13,720 |
| Subscription Period | October 15 to October 17, 2024 |
| Qualified Institutional Buyers (QIBs) | 50% of the net offer |
| Non-Institutional Investors (NIIs) | 15% of the net offer |
| Retail Investors | 35% of the net offer |
| Employee Reservation | 7.78 lakh shares with a discount of Rs 186 per share |
Stock trading apps provide easy access to participate, and using an F&O app can help investors manage their positions more effectively.
Market Reach and Business Operations
Founded in May 1996, Hyundai Motor India operates as a subsidiary of Hyundai Motor Group, the third-largest automobile manufacturer in the world by passenger vehicle sales. The company has a significant presence in India, with over 1,366 sales points and 1,550 service centers across the country.
Hyundai’s Indian portfolio features a diverse range of vehicles, including hatchbacks, sedans, SUVs, and electric vehicles (EVs). Popular models include the Grand i10 NIOS, i20, Venue, Verna, Creta, Alcazar, Tucson, and the all-electric Ioniq 5. Beyond India, the company also exports vehicles to markets such as Africa, the Middle East, Bangladesh, Nepal, Bhutan, and Sri Lanka.
Hyundai operates through 363 dealerships in India, enabling it to effectively distribute and sell vehicles to a wide customer base. With nearly 12 million vehicles sold in the Indian market to date, Hyundai Motor India has established itself as a key player in the automotive sector. As the company continues to expand its operations, it presents a unique opportunity for investors to be part of its growth journey.
Financial Performance
Hyundai Motor India’s financial performance has been robust, which further strengthens its position as a compelling investment. For the quarter ended June 30, 2024, the company reported a net profit of Rs 1,489.65 crore, with revenues amounting to Rs 17,567.98 crore. This quarterly performance showcases the company’s ability to maintain profitability despite the challenges posed by the global automotive market.
For the full financial year ending on March 31, 2024, Hyundai Motor India reported revenues of Rs 71,302.33 crore, accompanied by a net profit of Rs 6,060.04 crore. This consistent growth in both revenue and profit margins demonstrates the company’s resilience and capacity to navigate market fluctuations effectively.
Such financial stability makes the Hyundai Motor India IPO an attractive proposition for both short-term and long-term investors. Using a stock trading app, investors can track real-time data on Hyundai’s market performance post-listing and make informed decisions about whether to hold or sell their shares based on market conditions.
Allocation and Listing Timeline
- The IPO subscription will close on Thursday, October 17, 2024.
- Share allotment will be finalised on Friday, October 18, 2024.
- The shares are expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Tuesday, October 22, 2024.
Hyundai has appointed Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, HSBC Securities & Capital Markets, and Morgan Stanley India Company as lead managers for this monumental IPO. Kfin Technologies will act as the registrar for the issue, ensuring that the allotment process runs smoothly.
Hyundai Motor India’s Global and Indian Impact
Hyundai Motor Group has firmly established itself as a global automotive leader, ranking as the third-largest automaker globally in passenger vehicle sales. Its Indian subsidiary plays a pivotal role in the group’s global strategy, contributing significantly to domestic sales while also serving as an essential export hub for nearby markets.
Key Points:
- Hyundai Motor India is a major player in both domestic and international markets.
- The company serves as an export hub for regions like Africa, the Middle East, and South Asia.
- The IPO will not provide proceeds to Hyundai Motor India directly; instead, all funds will go to its parent company in South Korea.
- The IPO is structured as an offer for sale (OFS) by Hyundai Motor Company, allowing the parent firm to reduce its stake in the Indian arm without affecting the subsidiary’s operations.
- This move is expected to bolster Hyundai’s market presence in India, solidifying its role in both the automotive and stock market sectors.
Hyundai’s Path Ahead
As Hyundai Motor India prepares for its monumental IPO, the company is well-positioned to capitalise on its strong financial performance and market presence. With Hyundai Motor India’s IPO generating significant buzz, retail investors have multiple ways to participate.
In addition to buying shares directly, they can also consider Futures and Options trading as a strategy to hedge their investments or amplify their returns in the stock market.
How to apply for IPO using HDFC Sky’s One-Click feature
With HDFC Sky’s One-Click IPO feature, applying for IPOs has never been easier. Follow these steps to apply for the Hyundai IPO:
- Login to HDFC Sky: Access your account using your credentials.
- Navigate to IPO section: Go to “Indian Stocks” under your profile, then click on “IPO.”
- Select Hyundai IPO: Find Hyundai in the IPO list and click “Apply Now.”
- Enter your bid: Customise your bid and application details.
- Proceed to payment: Pay using UPI.
- Approve mandate: Approve the payment through your UPI app.
- Confirm and submit: Finalise the process by placing your order.
Key features of HDFC Sky’s One-Click IPO:
- Effortless application: Apply with just a click, avoiding lengthy paperwork.
- Real-time tracking: Get instant updates on your application and allotment.
- All-in-one platform: Manage all IPO applications easily.
- Anywhere access: Apply using the mobile app or portal from anywhere.
Hyundai’s IPO offers a blend of growth potential and stability. The One-Click IPO feature from HDFC Sky makes this opportunity easier to access, streamlining the process for investors.
Follow our WhatsApp channel
