Hyundai Motor India Limited, one of the country’s leading automakers, is all set to hit the market with its highly anticipated Initial Public Offering (IPO). The IPO is scheduled to launch between October 15 and October 17, 2024, and is expected to be one of the largest IPOs of the year.
This blog will guide you through crucial details of the Hyundai Motor IPO, including bidding dates, investment requirements, and other key features to consider.
IPO Details
| 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) |
To take part in this exciting IPO, potential investors should open free demat account. This account will be essential for holding the shares electronically, ensuring a seamless investment experience.
Hyundai IPO Structure
The Hyundai Motor India IPO is an offer for sale (OFS) of approximately 14.22 crore shares. This means that the shares being sold were previously owned by existing shareholders, not newly issued by the company.
The subscription period is brief, allowing investors just three days to place their bids.
For those interested in tracking their investments, utilising a share market app can greatly enhance the experience, providing timely updates and easy access to market data throughout the IPO process.
Allotment and Listing Dates:
Key Dates
| 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) |
Investment Insights
Investment Requirements for Hyundai Motor IPO:
- Retail Investors: Minimum investment of ₹13,720 for 7 shares.
- Small Non-Institutional Investors (sNII): Minimum investment of ₹2,05,800 for 15 lots (105 shares).
- Large Non-Institutional Investors (bNII): Minimum investment of ₹10,01,560 for 73 lots (511 shares).
Allotment Reservation:
The allocation of shares is designed to benefit various investor categories with specific quotas:
- Qualified Institutional Buyers (QIB): Up to 50% of the net issue.
- Retail Investors: At least 35% of the net issue.
- Non-Institutional Investors (NII): Not less than 15% of the net issue.
Additionally, Hyundai has set aside up to 7,78,400 shares for employees at a discounted rate of ₹186 per share.
Hyundai Motor India Limited Overview
Hyundai Motor India Limited, a subsidiary of Hyundai Motor Company, is a leading player in the Indian automotive market, offering a diverse range of vehicles including sedans, hatchbacks, SUVs, and electric vehicles (EVs). With an extensive network of 1,366 sales outlets and 1,550 service centres across the country, Hyundai is committed to providing innovative mobility solutions to Indian customers.
Hyundai has consistently held the position of the second-largest auto original equipment manufacturer (OEM) in India since fiscal 2009, demonstrating its strong market presence and customer preference. Moreover, the company has been the leading exporter of passenger vehicles from India since fiscal 2005, underscoring its global reach and manufacturing capabilities.
Financial Performance
Hyundai’s financial growth reflects its strong market position:
| Financial Metric | FY 2023 (₹ million) | FY 2022 (₹ million) |
| Revenue from Operations | 603,075.80 | 473,784.32 |
| Profit After Tax (PAT) | 47,092.50 | 29,015.91 |
| Cash & Cash Equivalents | 177,411.47 | 141,388.42 |
| Total Sales Volume | 720,565 | 610,760 |
| Net Worth | 200,548.18 | 168,562.55 |
| Earnings Per Share (EPS) | 57.96 | 35.71 |
Hyundai’s impressive revenue growth and profit margins are indicative of its strong operational efficiency and market demand.
Industry Outlook
The Indian automotive market is poised for substantial growth, driven by a projected GDP expansion of 7% between fiscal years 2025 and 2029. As India continues to urbanize and disposable incomes increase, the demand for vehicles, especially mid-size SUVs, is expected to skyrocket.
Hyundai’s extensive product lineup, featuring 13 models including the Grand i10 NIOS, i20, Creta, and the Ioniq 5 electric SUV, positions the company to capitalize on these favorable market trends.
Purpose of the Hyundai Motor India IPO
The Hyundai Motor India IPO is a significant event in the share market, valued at ₹27,870.16 crores and structured entirely as an offer for sale of approximately 14.22 crore shares. This strategic move serves multiple purposes:
Shareholder Divestment: The IPO primarily allows existing shareholders to sell their stakes. This is a crucial opportunity for them to liquidate their investments and realise profits.
No Proceeds for Company: It’s important to note that Hyundai Motor India will not benefit from the IPO proceeds, as all funds generated will go to the Promoter Selling Shareholder after deducting offer-related expenses and taxes.
Market Positioning: By launching this IPO, Hyundai aims to strengthen its presence in the Indian market and enhance shareholder liquidity, creating a more dynamic environment for future investments.
Accessibility for Investors: This IPO opens doors for retail and institutional investors to participate in Hyundai’s equity, contributing to greater market engagement.
How to Participate in Hyundai IPO
Hyundai Motor India Limited is set to make waves in the share market with its upcoming IPO. Whether you are looking to open a demat account or explore margin trading options, now is an exciting time to participate in this significant IPO opportunity.
For investors looking for a hassle-free way to participate in IPOs, the One-Click IPO feature is a game-changer. This innovative platform streamlines the application process, making it easier and more efficient. Platforms like HDFC Sky offer a comprehensive solution for managing IPO investments, making them ideal for those who prefer a straightforward approach.
Here’s how you can easily invest in the Hyundai IPO using HDFC Sky:
- Register for an HDFC Sky Account: Quickly create your account online in just a few steps.
- Explore IPO Opportunities: Navigate through the platform to find the upcoming Hyundai IPO.
- Make Your Investment Effortless: Click on the Hyundai IPO option and use your UPI ID to complete your investment seamlessly.
