Hyundai Motor India is set to launch its highly anticipated initial public offering (IPO) on October 15, 2024, with an anchor investor subscription opening a day earlier on October 14. The IPO will be priced between ₹1,865 and ₹1,960 per share, valuing the company at approximately $19 billion, making it one of the largest IPOs in India this year. This marks a significant milestone as it will be the first car manufacturer to go public in India since Maruti Suzuki in 2003.
Main Points
Key Details of the Hyundai India IPO
Launch Dates:
- Anchor Investor Subscription: October 14, 2024
- Retail and Other Investors Subscription: October 15-17, 2024
- Expected Listing Date: October 22, 2024
Price Band:
- The shares will be offered at a price range of ₹1,865 to ₹1,960 per share.
Issue Size:
- The total issue size is approximately ₹25,000 crore (around $3 billion), with Hyundai Motor Company selling up to 17.5% of its stake through an offer for sale.
Lot Size:
- Each lot will consist of a specific number of shares, which is yet to be confirmed but typically ranges from 6 to 12 shares in Indian IPOs.
How to Apply for the Hyundai India IPO
Investors can apply for the Hyundai IPO through various online platforms. Here’s a simple guide:
- Log in to your trading account (e.g., Angel One, Groww).
- Navigate to the IPO section on your platform.
- Select the Hyundai IPO from the list of available offerings.
- Enter the lot size you wish to bid for.
- Submit your UPI ID for payment processing.
- Approve the payment request via your UPI app.
Financial Overview and Business Model
Hyundai Motor India is currently valued at approximately $19 billion, based on the upper end of the price band. The IPO will involve an offer for sale of up to 17.5% of its equity shares, with no new shares being issued. After this offering, Hyundai Motor Company will retain an 82.5% stake in its Indian subsidiary.
The company has consistently maintained a strong market presence, holding around 15% of India’s automotive market share, making it the second-largest car manufacturer in the country after Maruti Suzuki. Hyundai plans to enhance its product lineup by introducing electric vehicles and expanding its SUV offerings.
Market Position and Competitor Comparison
Hyundai’s entry into the public market comes at a time when it aims to reclaim market share from domestic rivals amid increasing competition. The automotive sector in India has seen significant shifts, with competitors like Tata Motors and Mahindra & Mahindra also vying for consumer attention.
Competitor Snapshot
| Competitor | Market Share | Recent Developments |
|---|---|---|
| Maruti Suzuki | ~45% | Focus on hybrid models |
| Tata Motors | ~12% | Expanding EV lineup |
| Mahindra & Mahindra | ~10% | Launching new SUV models |
Risks and Concerns
Investors should consider potential risks associated with investing in Hyundai’s IPO:
- Market Competition: The automotive sector is highly competitive, with established players and new entrants.
- Economic Conditions: Fluctuations in economic conditions can impact vehicle sales.
- Regulatory Challenges: Compliance with evolving regulations regarding emissions and safety standards could affect operational costs.
Grey Market Premium (GMP) and Allotment Insights
As of today, the grey market premium for Hyundai’s shares is showing positive trends, indicating strong investor interest ahead of the listing. The GMP reflects market sentiment and can influence retail investor participation.
Growth Prospects
Hyundai’s growth strategy includes launching its first India-made electric vehicle in early 2025 and introducing gasoline-powered models tailored to local preferences by 2026. This proactive approach positions Hyundai well to capitalize on India’s growing demand for both traditional and electric vehicles.
Conclusion
Hyundai Motor India’s upcoming IPO is poised to attract significant attention from both institutional and retail investors due to its strong market position and growth prospects. With the automotive sector evolving rapidly, Hyundai’s strategic initiatives could enhance its competitive edge in this dynamic landscape.
