Get Ready for the Hyundai IPO: Key Details and Insights

The Hyundai Motor India IPO is creating a buzz in the investment community. Scheduled to open on 15 October 2024 and close on 17 October 2024, this initial public offering (IPO) offers a unique opportunity for investors. 

The price range is set between ₹1865 to ₹1960 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 promises to be one of the significant entries in the Indian stock market this year. The shares will be listed on both the BSE and NSE on 22 October 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 part of the Hyundai Motor Group, which is renowned as the third-largest auto original equipment manufacturer (OEM) globally. This stature adds considerable credibility to the IPO, attracting interest from retail and institutional investors alike. 

As part of this offering, 14.22 crore shares will be available entirely as an offer for sale, with no fresh issue involved, meaning the proceeds will go to the selling shareholders, not to Hyundai itself.

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Financial Snapshot

Before diving into the IPO, let’s take a look at Hyundai Motor India's financial performance. The company has shown impressive growth in recent years, with revenue climbing to ₹71,302.33 crores in FY24, up from ₹61,436.64 crores in FY23. The EBITDA also saw a notable increase, reaching ₹9,132.62 crores. With a profit after tax (PAT) of ₹6,060.04 crores in FY24, Hyundai has demonstrated robust financial health.

Here’s a summary of the key financial metrics over the last three fiscal years:

Hyundai's ability to adapt and thrive in the competitive automotive landscape positions it well for future growth.

Investment Considerations

IPO Details and Process
 

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The Hyundai IPO has generated anticipation not only due to its size but also because of the brand's reputation. Being the second-largest car OEM in the Indian passenger vehicle industry, Hyundai boasts an extensive lineup of vehicles ranging from sedans and hatchbacks to electric vehicles. The company’s commitment to innovation and quality has resulted in the sale of nearly 12 million passenger cars since entering 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:

1. Diverse Vehicle Portfolio: The company offers a wide range of vehicles which cater to various consumer preferences and market segments.
2. Strong Manufacturing Capabilities: Hyundai's manufacturing plants in Tamil Nadu utilise advanced technologies, ensuring high-quality production.
3. Focus on Electric Vehicles: With the global shift toward sustainability, Hyundai’s investment in electric vehicles positions it favourably for future growth.
4. 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:

1. Competitive Landscape: The Indian automotive market is saturated with both domestic and international competitors vying for market share.
2. Regulatory Challenges: The automotive industry faces strict regulations related to emissions and safety, which can affect operational costs and product offerings.
3. Economic Dependency: Hyundai's performance is closely tied to economic conditions in India, which can fluctuate.
4. 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:

1. Login to HDFC Sky: Sign into your account using your credentials.
2. Navigate to the IPO section: Go to "Indian Stocks" in your profile and click on "IPO."
3. Select Hyundai IPO: Find Hyundai in the IPO list and click "Apply Now."
4. Input your bid: Enter your bid and customise your application.
5. Proceed to payment: Choose UPI as your payment method.
6. Approve mandate: Open your UPI app to approve the payment.
7. 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.