The Hyundai Motor India IPO is generating excitement in the investment community. Scheduled to open on October 15, 2024, and close on October 17, 2024, this initial public offering presents a unique opportunity for investors.
The price range is set between ₹1,865 and ₹1,960 per share, with a minimum investment of ₹13,720 for a lot of 7 shares. With an IPO size of ₹27,870.16 crores, it is poised to be one of the year’s major entries in the Indian stock market. The shares are expected to be listed on both the BSE and NSE on October 22, 2024.
Let’s understand the Hyundai IPO process and how HDFC Sky’s ‘One-Click IPO’ enhances the investment experience.
For investors looking to buy shares, a demat account opening online is essential to manage their holdings effectively.
About Hyundai
Hyundai Motor India is a subsidiary of the Hyundai Motor Group, recognized as the third-largest auto original equipment manufacturer (OEM) in the world. This status lends significant credibility to the IPO, drawing interest from both retail and institutional investors.
The offering will consist entirely of 14.22 crore shares available as an offer for sale, with no new shares being issued. As a result, the proceeds will go to the selling shareholders rather than Hyundai itself.
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Financial Snapshot
Before delving into the IPO, it’s important to review Hyundai Motor India’s financial performance. The company has experienced significant growth in recent years, with revenue rising to ₹71,302.33 crores in FY24, an increase from ₹61,436.64 crores in FY23. EBITDA also saw a substantial rise, reaching ₹9,132.62 crores. With a profit after tax (PAT) of ₹6,060.04 crores in FY24, Hyundai has showcased strong financial health.
Here’s a summary of the key financial metrics over the last three fiscal years:
| Particulars | FY24 | FY23 | FY22 |
| Revenue (in ₹ crores) | 71,302.33 | 61,436.64 | 47,966.05 |
| EBITDA (in ₹ crores) | 9,132.62 | 7,548.78 | 5,486.01 |
| PAT (in ₹ crores) | 6,060.04 | 4,709.25 | 2,901.59 |
Hyundai’s ability to adapt and thrive in the competitive automotive landscape positions it well for future growth.
Investment Considerations
IPO Details and Process
| Event | Date |
| IPO Open Date | October 15, 2024 |
| IPO Close Date | October 17, 2024 |
| Basis of Allotment | October 18, 2024 |
| Initiation of Refunds | October 21, 2024 |
| Credit of Shares to Demat Accounts | October 21, 2024 |
| Listing Date (Tentative) | October 22, 2024 |
| Anchor Bid Date | October 14, 2024 |
| Category | Details |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹10 per share |
| Price Band | ₹1865 to ₹1960 per share |
| Total Issue Size | 14.22 crore shares (₹27,870.16 crore) |
| Offer for Sale | 14.22 crore shares |
| Employee Reservation | 778,400 shares (with a discount of ₹186) |
| Minimum Investment (Retail) | ₹13,720 (7 shares) |
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The Hyundai IPO has sparked excitement not only because of its size but also due to the brand’s strong reputation. As the second-largest car OEM in the Indian passenger vehicle market, Hyundai offers a diverse lineup that includes sedans, hatchbacks, and electric vehicles. The company’s dedication to innovation and quality has led to the sale of nearly 12 million passenger cars since it entered the Indian market in 1998.
Reserved Categories
The Hyundai Motor IPO is reserved for different categories of investors, with specific allocations for each group:
- Qualified Institutional Buyers (QIBs): Up to 50% of the net issue is reserved.
- Retail Investors: 35% of the net issue is allocated to retail participants.
- Non-Institutional Investors (NIIs): Also referred to as high-net-worth individuals (HNIs), 15% of the total issue is set aside for them.
- Employee Reservation: 778,400 shares are reserved for Hyundai employees, offered at a discount of ₹186 per share to the issue price. This encourages employee participation in the IPO.
Strengths and Opportunities of the IPO
Hyundai Motor India stands tall in a competitive market. Here are a few strengths and opportunities associated with the IPO:
- Diverse Vehicle Portfolio: The company offers a wide range of vehicles which cater to various consumer preferences and market segments.
- Strong Manufacturing Capabilities: Hyundai’s manufacturing plants in Tamil Nadu utilise advanced technologies, ensuring high-quality production.
- Focus on Electric Vehicles: With the global shift toward sustainability, Hyundai’s investment in electric vehicles positions it favourably for future growth.
- Financial Backing: As a subsidiary of a leading global automotive manufacturer, Hyundai enjoys strong financial resources, providing stability and growth potential.
Risks to Consider
While the prospects are promising, potential investors should also be aware of the risks involved:
- Competitive Landscape: The Indian automotive market is saturated with both domestic and international competitors vying for market share.
- Regulatory Challenges: The automotive industry faces strict regulations related to emissions and safety, which can affect operational costs and product offerings.
- Economic Dependency: Hyundai’s performance is closely tied to economic conditions in India, which can fluctuate.
- Supply Chain Issues: Global supply chain disruptions, particularly in semiconductor availability, can impact production schedules and overall business operations.
Utilising an SIP app can help investors build a disciplined investment strategy, allowing them to invest systematically in high-potential IPOs like Hyundai.
How to apply for IPO using HDFC Sky’s One-Click feature
HDFC Sky’s One-Click feature makes the IPO application process smoother and more efficient. To apply for the Hyundai IPO, follow these steps:
- Login to HDFC Sky: Sign into your account using your credentials.
- Navigate to the IPO section: Go to “Indian Stocks” in your profile and click on “IPO.”
- Select Hyundai IPO: Find Hyundai in the IPO list and click “Apply Now.”
- Input your bid: Enter your bid and customise your application.
- Proceed to payment: Choose UPI as your payment method.
- Approve mandate: Open your UPI app to approve the payment.
- Place your order: Complete the application by placing the order.
Key features of HDFC Sky’s One-Click IPO:
- Easy application: Apply in one click, reducing paperwork.
- Instant notifications: Receive real-time updates on your application and refunds.
- Unified platform: Manage your IPO investments from one place.
- Apply anywhere: Use the HDFC Sky app or portal to apply from any location.
Hyundai’s IPO offers substantial growth potential, and with HDFC Sky’s One-Click feature, applying is simpler than ever. Don’t miss this opportunity to invest easily and efficiently.