Hyundai Motor IPO Set to Launch on October 15: All You Need to Know About India’s Biggest Offering

Hyundai Motor IPO: In a move that is set to make waves in the Indian stock market, Hyundai Motor India is all set to launch its Initial Public Offering (IPO) on Tuesday, October 15, 2024. This will be the largest IPO India has ever witnessed, offering an excellent opportunity for investors to participate in the growth of one of the biggest automobile companies in the world. In this article, we will cover all the details surrounding this historic IPO, including its pricing, market impact, and Hyundai’s position in the Indian market.

Contents

Hyundai Motor India’s Landmark IPO Biggest IPO in Indian Stock Market History Hyundai Motor India: A Legacy of Excellence Financial Performance: A Snapshot Hyundai’s Market Footprint in India IPO Breakdown: Investor Opportunities Key Players in the IPO Process Listing on BSE and NSE Why Hyundai Motor India’s IPO is a Game-Changer

Hyundai Motor India’s Landmark IPO

The IPO of Hyundai Motor India will be an offer for sale (OFS) by its South Korean parent company, Hyundai Motor Company. This means that Hyundai Motor Company will offload up to 14,21,94,700 equity shares to the public. The price range of the shares is set between ₹1,865 and ₹1,960 per share, with a minimum investment of seven shares. The bidding window will remain open from October 15 until October 17, 2024, allowing potential investors a short but impactful window to participate in this significant event.

Biggest IPO in Indian Stock Market History

This IPO is not just any offer for sale—it is poised to be India’s largest IPO ever. At the upper end of the price band (₹1,960 per share), Hyundai Motor India is expected to raise a staggering ₹27,855 crore. This amount would surpass all previous IPOs in the Indian stock market, cementing Hyundai’s place as a market giant. For comparison, the largest IPO to date was Life Insurance Corporation of India (LIC), which raised ₹21,000 crore in 2022.

While this is a major development for Hyundai and the Indian stock market, it’s essential to note that none of the proceeds from this IPO will go to Hyundai Motor India itself. The entire amount raised will be directed to its parent company, Hyundai Motor Company in South Korea, which retains full control over the financial allocation.

Hyundai Motor India: A Legacy of Excellence

Hyundai Motor India, incorporated in May 1996, is a wholly owned subsidiary of Hyundai Motor Company. The company operates out of its headquarters in Chennai and is part of the Hyundai Motor Group, the third-largest automobile manufacturer in the world based on passenger vehicle sales.

Hyundai Motor India has played a significant role in transforming the Indian automotive landscape by introducing world-class vehicles. Today, Hyundai manufactures a wide range of four-wheeler passenger vehicles, including sedans, hatchbacks, SUVs, and electric vehicles (EVs).

Some of the company’s popular models include:

Grand i10 NIOS
i20
Verna
Creta
Alcazar
Tucson
Ioniq 5 (All-Electric SUV)

These models have become household names in India, with the brand’s reputation for quality, performance, and affordability resonating with consumers.

Financial Performance: A Snapshot

For potential investors, Hyundai Motor India’s strong financial performance is a key factor to consider. The company has consistently reported healthy financial figures, underlining its solid foundation.

For the quarter ending June 30, 2024, Hyundai Motor India reported a net profit of ₹1,489.65 crore, supported by revenue figures of ₹17,567.98 crore.
For the financial year ending March 31, 2024, the company achieved a net profit of ₹6,060.04 crore, with an impressive total revenue of ₹71,302.33 crore.

These financials reflect Hyundai’s dominance in both the Indian and global automotive markets, making it a promising investment opportunity.

Hyundai’s Market Footprint in India

One of the key strengths of Hyundai Motor India is its extensive network of dealerships and service points, which have helped the company reach customers across the length and breadth of the country. The company operates 1,366 sales points and 1,550 service points, which enable it to maintain strong customer relationships and ensure seamless after-sales service.

Hyundai has sold nearly 12 million passenger vehicles in India, and its export reach extends to Africa, the Middle East, and neighboring countries like Bangladesh, Nepal, Bhutan, and Sri Lanka. The company has also partnered with 363 dealer companies to ensure effective distribution and sales across the country.

IPO Breakdown: Investor Opportunities

The IPO offers several opportunities for different categories of investors:

Qualified Institutional Buyers (QIBs): Hyundai Motor India has reserved 50% of the net offer for QIBs, ensuring that large institutional investors have a significant stake in the IPO.
Non-Institutional Investors (NIIs): 15% of the offer is earmarked for NIIs, allowing high-net-worth individuals and entities to invest.
Retail Investors: 35% of the offer is set aside for retail investors, providing individual investors with the opportunity to participate in this landmark event.
Employee Reservation: Hyundai Motor India has reserved 7,78,400 equity shares for its employees, who will enjoy a discount of ₹186 per share.

The IPO’s size and structure ensure that it is accessible to a broad range of investors, from large institutional entities to retail participants and employees, making it one of the most inclusive IPOs in recent times.

Key Players in the IPO Process

To bring this monumental IPO to the public, Hyundai Motor India has enlisted the help of several prominent financial institutions. The book running lead managers for the issue include:

Kotak Mahindra Capital
JP Morgan India
Citigroup Global Markets India
HSBC Securities & Capital Markets
Morgan Stanley India Company

These financial giants will oversee the smooth execution of the IPO, ensuring that investors have easy access to the offering. Meanwhile, KFin Technologies has been appointed as the registrar for the issue.

Listing on BSE and NSE

Once the IPO concludes, Hyundai Motor India’s shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with the tentative listing date set for Tuesday, October 22, 2024. This listing will further elevate Hyundai’s presence in the Indian financial markets, providing an additional opportunity for investors to trade the company’s shares post-IPO.

Why Hyundai Motor India’s IPO is a Game-Changer

The upcoming Hyundai Motor India IPO is a significant event for multiple reasons:

Market Expansion: As India’s auto market continues to grow, Hyundai is well-positioned to capitalize on the increasing demand for passenger vehicles, including electric vehicles.
Investment Potential: With a solid financial track record and a global presence, Hyundai Motor India presents an attractive investment opportunity for both short-term and long-term investors.
Largest IPO: The sheer scale of this IPO sets it apart, offering investors the chance to be part of a historic financial event in India.