The upcoming Hyundai Motors IPO, set to launch on October 15, 2024, is one of the most anticipated initial public offerings in Indian stock market history. As Hyundai looks to raise a whopping ₹27,855 crore, this IPO could be a game-changer for both retail and institutional investors alike. In this article, we’ll delve into all the key details about this IPO, from its pricing and grey market premium (GMP) to the potential listing gains, making this the perfect resource for anyone looking to invest smartly in Hyundai Motors.
Key Details of Hyundai Motors IPO
1. Launch Date: October 15, 2024
2. Closing Date: October 17, 2024
3. Issue Size: ₹27,855 crore
4. Price Band: ₹1,865 - ₹1,960 per share
5. Lot Size: 7 shares
6. Minimum Investment: ₹13,720 (for retail investors)
7. IPO Type: Offer for Sale (OFS)
8. Expected Listing Date: October 22, 2024
9. Lead Managers: Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, HSBC Securities & Capital Markets, and Morgan Stanley India
10. Registrar: KFin Technologies
Hyundai Motors: A Legacy of Excellence
Hyundai Motor India, established in 1996, is a subsidiary of South Korea’s Hyundai Motor Group, the world’s third-largest automaker in terms of passenger vehicle sales. Hyundai has been instrumental in revolutionizing India’s automotive sector with popular models like the Creta, i20, Verna, and Tucson. With over 12 million carssold in India and strong export markets across Asia, Africa, and the Middle East, Hyundai has solidified its position as one of the most trusted carmakers in India.
Financial Performance
Investors are closely eyeing the financial health of Hyundai India. The company posted a net profit of ₹6,060.04 crore in FY2024 with revenues of ₹71,302.33 crore. This strong financial backing makes Hyundai Motors’ IPO even more appealing to potential investors. The company's performance in the first quarter of FY2025, with revenues of ₹17,567.98 crore and a net profit of ₹1,489.65 crore, further highlights its growing market dominance.
Grey Market Premium (GMP) and Listing Gains
While there is still no confirmed grey market premium (GMP) for the Hyundai Motors IPO, early market trends suggest a positive reception due to the company's strong market presence and excellent financials. As the listing date approaches, experts predict a moderate-to-high listing gain percentage, making this IPO potentially profitable for short-term and long-term investors alike.
Allocation and Allotment Details
The IPO will be divided as follows:
-50% of the net offer for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 35% for Retail Investors
Additionally, there is a *reservation of 7.78 lakh shares* for eligible employees, who will benefit from a *₹186 per share discount*.
Reasons to Invest in Hyundai Motors IPO
1. Strong Market Position
Hyundai Motors India is the **second-largest carmaker** in the country after Maruti Suzuki, with a solid lineup of vehicles, including **SUVs, sedans, and electric cars**. Its focus on expanding the SUV lineup, a rapidly growing segment, is expected to strengthen its market share even further.
2. Proven Financials
Hyundai Motors India has demonstrated robust financial performance, with consistent revenue growth and profitability. For investors looking for stability, Hyundai’s past financial success offers a solid foundation.
3. Industry Outlook
The automotive industry is seeing a transition toward electric vehicles (EVs), and Hyundai’s early investment in this space positions it well for future growth. As India continues to push for greener technologies, Hyundai's EV offerings, like the Ioniq 5, are expected to see significant demand in the coming years.
4. Strong International Presence
Hyundai's presence in multiple markets, including Africa and the Middle East, allows the company to diversify its revenue streams. This global presence reduces its dependency on the Indian market and enhances growth potential.
Key Risks to Consider
1. Market Saturation: The Indian automotive market is highly competitive, with both domestic and international players vying for market share. While Hyundai has performed well, maintaining its position will require continued innovation and adaptation to market trends.
2. Macroeconomic Factors: Changes in interest rates, fuel prices, or government policies could impact the company’s profitability in the short term.
How to Apply for the Hyundai Motors IPO
Investors can apply for the Hyundai Motors IPO via online platforms offered by various brokerage firms such as Zerodha, Upstox, and Groww, or through their Demat account linked with a bank.
Step 1: Log in to your trading platform or app.
Step 2: Go to the IPO section and select Hyundai Motors.
Step 3: Enter the lot size you wish to apply for (minimum 7 shares).
Step 4: Submit your application after verifying the total investment amount.
Conclusion: Is Hyundai Motors IPO a Good Investment?
The Hyundai Motors IPO offers a unique opportunity to invest in one of India’s top automakers. With its strong financial performance, expansion into electric vehicles, and robust market position, the IPO is poised to generate substantial interest from retail and institutional investors alike. While it’s essential to consider market risks, Hyundai’s long-term growth potential makes it a compelling option for investors.
For those looking for both short-term gains through IPO listing as well as long-term growth in the auto sector, the Hyundai Motors IPO could be an excellent addition to their investment portfolio.
0 Comments