The much-awaited Hyundai Motor IPO will be open for subscription from October 15 to October 17, 2024. This book-built issue aims to raise an impressive ₹27,870.16 crores. The price band has been set between ₹1865 and ₹1960 per share, with retail investors able to apply for a minimum of seven shares per lot.
This IPO represents a significant milestone for Hyundai Motor India, a key part of the global Hyundai Motor Group, known for its leadership in the automotive industry. Investors are eager to seize the opportunity presented by this offering, which is scheduled to debut on the BSE and NSE on October 22, 2024.
To participate in this IPO, investors need to have a demat account set up, and using a reliable demat app can simplify the process of applying for shares efficiently.
Key IPO Dates and Offer Details
Investors looking to buy shares should first open demat account to manage their holdings effectively.
| 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 |
Hyundai Motor IPO Offer 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) |
Allocation and Reservation Details
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.
Hyundai Motor’s Anchor Investors
On October 14, 2024, a day before the public subscription begins, Hyundai Motor will secure ₹8,315.28 crore from anchor investors. The IPO will allocate 42,424,890 shares to these investors, with a lock-in period of 30 days for half of the shares, ending on November 17, 2024. The remaining shares will be locked in for 90 days, until January 16, 2025.
Hyundai Motor India: A Legacy of Innovation
Hyundai Motor India Limited, part of the global Hyundai Motor Group, has emerged as a dominant player in the Indian automotive industry. Founded in May 1996, the company has played a crucial role in transforming the country’s passenger vehicle market.
Leveraging advanced technology, Hyundai Motor India manufactures and sells a wide range of vehicles, including sedans, hatchbacks, SUVs, and electric vehicles (EVs). Some of its popular models are the Grand i10 NIOS, Venue, Verna, Creta, and the electric SUV Ioniq 5. With a diverse lineup, the company caters to a broad array of customers.
Hyundai’s presence spans across India, supported by an extensive network of 1,366 sales outlets and 1,550 service centers. The company also exports vehicles to various international markets, such as Africa, the Middle East, and South Asia. As of March 31, 2024, Hyundai had sold nearly 12 million vehicles domestically and through exports.
Financial Performance and Market Capitalization
Hyundai Motor India has demonstrated robust financial performance, reporting a 16% increase in revenue and a 29% rise in profit after tax (PAT) for the financial years ending March 31, 2023, and March 31, 2024. As of June 30, 2024, the company’s revenue reached ₹17,567.98 crore, with total assets valued at ₹25,370.24 crore. The profit after tax for this period was ₹1,489.65 crore.
Here’s a summary of the company’s financials in recent years (all figures in ₹ crore):
| Period Ended | Revenue | Profit After Tax | Assets |
| 30 Jun 2024 | 17,567.98 | 1,489.65 | 25,370.24 |
| 31 Mar 2024 | 71,302.33 | 6,060.04 | 26,349.25 |
| 31 Mar 2023 | 61,436.64 | 4,709.25 | 34,573.34 |
As of June 30, 2024, Hyundai Motor’s return on capital employed (ROCE) is 13.69%, and its return on net worth (RoNW) is 12.26%. The company has a price-to-book value (P/BV) of 14.93.
The market capitalization of Hyundai Motor’s IPO is estimated at ₹159,258.06 crore, positioning it as one of the largest IPOs in India’s automotive sector.
Investors analyzing Hyundai Motor’s financial metrics can leverage a stocks app to evaluate market trends and make informed investment decisions.
Promoter Holding and Post-IPO Shareholding
Hyundai Motor Company, the global parent of Hyundai Motor India, is the sole promoter of the company. Before the IPO, Hyundai Motor Company owns 100% of the company’s shares. After the IPO, its stake will decrease to 82.50% as the remaining shares will be made available to the public through the sale of 14.22 crore shares.
Hyundai Motor IPO Objectives
The Hyundai Motor IPO is structured as a purely offer for sale (OFS), with specific implications for the company and its stakeholders:
- No Proceeds for Hyundai Motor India: The company will not receive any proceeds from the IPO.
- Total Proceeds: The entire ₹27,870.16 crore raised will go to the promoter, Hyundai Motor Company, which is selling shares of its Indian subsidiary.
- Well-Capitalised Company: This structure indicates that Hyundai Motor India is already well-capitalised and does not require additional funds for expansion or operational purposes.
- Stake Monetisation: The proceeds will enable Hyundai Motor Company to monetise its stake in the Indian arm, benefiting from its investment in the subsidiary.
The Hyundai Motor IPO represents a crucial opportunity for equity trading, allowing investors to engage with a well-established automotive company while benefiting from the overall market momentum.
How to Invest in Hyundai IPO
Investors seeking a simple and user-friendly approach to IPO investments may find the One-Click IPO feature especially advantageous. This innovative platform streamlines the IPO application process, making it more accessible and efficient for investors. Platforms such as HDFC Sky provide a comprehensive solution for easily managing IPO investments, making it an ideal choice for those interested in this efficient method.
Investing in the Hyundai IPO is both easy and secure with HDFC Sky. Just follow these steps:
- Open an HDFC Sky Account: Set up your account online quickly and conveniently.
- Find the IPO: Browse the upcoming Hyundai IPO on the HDFC Sky platform.
Invest with One Click: Select the Hyundai IPO and use your UPI ID for a seamless investment experience.
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