Hyundai Motor IPO: Check Date, Price, GMP, and Full Review Here

Hyundai Motor India is set to make a significant move in the stock market with its Initial Public Offering (IPO) expected to launch between October 14 and 16, 2024. This IPO, which is anticipated to raise approximately $3 billion, could be the largest in India’s history, surpassing the previous record held by LIC’s IPO in 2022. This announcement comes amid a backdrop of fluctuating market conditions due to geopolitical tensions in the Middle East, which have affected investor sentiment.

Key Details About the Hyundai Motor India IPO

Hyundai Motor India Limited (HMIL) has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its IPO. The company aims to capitalize on its strong market position as the second-largest car manufacturer in India, holding about 15% of the domestic car market share. The IPO will consist of an offer for sale by its parent company, Hyundai Motor Company, which plans to dilute 15-20% of its equity.

Hyundai Motor IPO Timeline and Structure

• IPO Opening Date: Expected between October 14-16, 2024
• Issue Size: Approximately ₹25,000 crores (around $3 billion)
• Price Band: To be announced shortly before the opening date
• Retail Investor Quota: Up to 35%
• Qualified Institutional Buyers (QIB) Quota: Up to 50%
• Non-Institutional Investors (NII) Quota: Up to 15%

The final price band will be determined in consultation with lead managers, including major global banks like JP Morgan and Citi. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Investment Opportunities and Risks

Investors are keenly watching this IPO due to Hyundai’s robust financial performance and strategic growth initiatives. The company’s consistent revenue growth, driven by its popular SUV lineup and significant investments in electric vehicles (EVs), positions it well for future success. However, potential investors should also consider risks such as market volatility and intense competition from local rivals like Maruti Suzuki and Tata Motors.

Benefits of Investing in Hyundai Motor IPO

• Market Leadership: As a top player in the Indian automotive sector, Hyundai’s established brand recognition can attract investors.
• Growth Potential: The company’s focus on expanding its EV portfolio aligns with global trends towards sustainable transportation.
• Strong Financials: Hyundai has shown consistent revenue growth, indicating a solid business foundation.

Risks Involved

• Market Conditions: The success of the IPO is closely tied to overall market sentiment, which can be unpredictable.
• Competition: Intense rivalry from other automakers may impact Hyundai’s market share and profitability.
• Regulatory Changes: Changes in government policies or tax laws could affect operational outcomes.

How to Invest in the Hyundai Motor IPO

Investors interested in participating in this IPO can follow these steps:

1. Open a Demat Account: Ensure you have a Demat account with a registered broker.
2. Stay Updated: Keep an eye on announcements regarding the exact price band and subscription dates.
3. Apply Online: Use your broker’s platform to apply for shares once the subscription window opens.
4. Monitor Allotment Status: After applying, check your allotment status through your broker’s website or app.

Hyundai Motor India Limited (HMIL) is preparing for a significant Initial Public Offering (IPO), which will consist entirely of an offer for sale by its promoter, Hyundai Motor Company. This IPO is set to be one of the largest in India’s history, with plans to sell approximately 142,194,700 equity shares, representing 17.50% of the total equity share capital of HMIL after the IPO completion.

Promoter Holding Details

1. Promoter: Hyundai Motor Company, based in South Korea, is the sole promoter and selling shareholder in this IPO.
2. Share Offer: The entire 142,194,700 shares being offered will come from Hyundai Motor Company, which aims to enhance its visibility and brand image through this public offering.
3. Valuation Target: The IPO is targeting a valuation of approximately ₹25,000 crores (around $3 billion), which would surpass the previous record held by the Life Insurance Corporation (LIC) of India.
4. Use of Proceeds: It is important to note that Hyundai Motor India Limited will not receive any proceeds from this sale; all funds raised will go directly to the promoter

Market Impact and Future Projections

The upcoming IPO is expected to reshape the competitive landscape of the Indian automotive industry. With increased capital from public investment, Hyundai plans to enhance its production capabilities and expand its product offerings, particularly in the EV segment. Analysts predict that this move could spur further innovation among competitors as they adapt their strategies to maintain market share.

Hyundai’s decision to go public is also seen as a strategic effort to address what is known as the “Korea discount,” where South Korean firms often trade at lower valuations compared to their global counterparts. By listing its Indian arm separately, Hyundai aims to unlock higher valuations and attract a broader investor base.

Hyundai Motor India Limited (HMIL), a wholly-owned subsidiary of the South Korean Hyundai Motor Company, was established on May 6, 1996. It has become a significant player in the Indian automotive market, known for producing a diverse range of vehicles, including sedans, hatchbacks, SUVs, and electric vehicles (EVs). As of FY 2024, HMIL holds approximately 15% of the domestic car market, making it the second-largest automobile manufacturer in India, trailing only Maruti Suzuki.

Company Overview

Hyundai Motor India began its journey with the launch of the Hyundai Santro in September 1998, which quickly gained popularity and established the brand in India. Over the years, HMIL has expanded its product lineup to include 13 models and has developed a robust sales and service network with 1,366 sales outlets and 1,550 service centers across the country as of December 31, 2023.

Market Position

HMIL is recognized as the largest exporter of passenger vehicles in India since 2005 and has sold nearly 12 million passenger vehicles through domestic sales and exports from its inception until March 31, 2024. The company’s strong market presence is supported by its advanced manufacturing practices and access to technology within the Hyundai Motor Group.

Financial Performance

Hyundai Motor India’s financial health is reflected in its consistent revenue growth. The company has maintained its position as a leading Original Equipment Manufacturer (OEM) in India. In 2023, it was ranked as the world’s third-largest auto OEM by passenger vehicle sales. Despite facing challenges such as seasonal demand fluctuations and competition from other brands like Kia (also owned by Hyundai), HMIL’s strategic initiatives have positioned it well for future growth.

Strategic Goals

The decision to pursue an Initial Public Offering (IPO) aims to raise ₹25,000 crores by selling approximately 142 million equity shares. This move is intended to enhance the company’s visibility and brand image while providing liquidity through public listing. The IPO could potentially be one of the largest in Indian history, surpassing previous records held by companies like LIC and PayTM