Contents
Hyundai Motor India Limited (HMIL) is poised to make a significant impact in the Indian stock market with its upcoming Initial Public Offering (IPO), set to be the largest in the country’s history. This article provides comprehensive details about the Hyundai Motor IPO, including its structure, financial implications, and what potential investors should know.
Refer to Hyundai Motor IPO RHP for details.
IPO Overview
Hyundai Motor’s IPO is a book-built issue aiming to raise approximately ₹27,870.16 crores through the sale of 14.22 crore equity shares. The IPO will open for subscription on October 15, 2024, and close on October 17, 2024. The allotment of shares is expected to be finalized on October 18, 2024, with shares listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) by October 22, 2024.
Key Details
- Price Band: ₹1865 to ₹1960 per share
- Minimum Lot Size: 7 shares
- Minimum Investment for Retail Investors: ₹13,720
- Total Issue Size: ₹27,870.16 crores
- Employee Discount: ₹186 per share for eligible employees
- Face Value: ₹10 per share
Investor Categories for Hyundai Motor IPO
The IPO has a structured reservation for different categories of investors:
- Qualified Institutional Buyers (QIBs): Up to 50% of the net issue
- Retail Investors: At least 35% of the net issue
- Non-Institutional Investors (NIIs): At least 15% of the net issue
- Additionally, there are 778,400 shares reserved for employees at a discounted rate.
Financial Performance of Hyundai Motor
Hyundai Motor India has shown robust financial growth. For the quarter ending June 30, 2024, the company reported:
- Revenue: ₹17,567.98 crores
- Profit After Tax (PAT): ₹1,489.65 crores
For the fiscal year ending March 31, 2024:
- Total Revenue: ₹71,302.33 crores
- PAT: ₹6,060.04 crores.
The company’s market capitalization post-IPO is projected to be around ₹159,258.06 crores.
Anchor Investor Participation
The IPO has already garnered significant interest from anchor investors, raising approximately ₹8,315.28 crores before the public offering opens. The anchor bid date is set for October 14, 2024, allowing institutional investors to secure their stakes ahead of the general subscription[1][3].
Lock-in Periods for Anchor Investors
- 50% of shares: The lock-in period ends on November 17, 2024 (30 days)
- Remaining shares: Lock-in period ends on January 16, 2025 (90 days).
Company Background
Founded in May 1996 and based in Chennai, Hyundai Motor India Limited is a subsidiary of Hyundai Motor Company and is recognized as one of the leading automobile manufacturers in India. The company operates a vast network comprising:
- 1,366 sales points
- 1,550 service points
Hyundai has sold nearly 12 million passenger vehicles in India and exports to various regions including Africa and the Middle East[2][5]. Its product lineup includes popular models such as:
- Grand i10 NIOS
- i20
- Creta
- Ioniq 5 (electric SUV)
Market Context and Strategic Importance
The Hyundai Motor IPO comes at a time when the Indian automotive sector is experiencing substantial growth, driven by increasing demand for electric vehicles and innovative mobility solutions. Hyundai aims to enhance its market presence further as part of its strategic expansion plans, which are set to be operational by late 2026.
Investor Sentiment and Market Trends
Despite some fluctuations in market sentiment reflected by a decline in Grey Market Premium (GMP) from ₹400 earlier in October to approximately ₹111 recently, investor interest remains robust due to Hyundai’s strong market position and growth potential[1][3]. Analysts suggest that this IPO could provide medium to long-term investment opportunities given Hyundai’s consistent performance and future expansion plans.
Conclusion
The Hyundai Motor India IPO represents not only a landmark event for the Indian stock market but also an opportunity for investors to engage with one of the world’s leading automotive manufacturers. With solid financials and an ambitious growth trajectory, this IPO is expected to attract significant attention from retail and institutional investors.
As always with investments in IPOs, potential investors should conduct thorough research and consider their financial goals before participating in this historic offering.
