Hyundai Motor India Limited is set to launch its initial public offering (IPO), presenting a major opportunity for investors seeking to tap into the market. The company plans to sell 1,42,194,700 shares, valued at around INR 27,870.16 crores. The IPO aims to boost the company’s visibility and brand image while offering liquidity through the listing of its equity shares.
Here’s a closer look at the Hyundai IPO and HDFC Sky’s pioneering ‘One-Click IPO’ feature for seamless investing.
Investors can use a reliable stock trading app to stay informed about this exciting opportunity.
Important Dates for the Hyundai IPO
Here are the crucial dates to remember for the Hyundai Motor India Limited IPO:
- IPO Date: October 15, 2024, to October 17, 2024
- Listing Date: October 22, 2024
- Price Range: INR 1865-1960 per share
- Lot Size: 7 shares
- Total Issue Size: INR 27,870.16 crores
- Basis of Allotment: October 18, 2024
- Initiation of Refunds: October 21, 2024
- Credit of Shares to Demat: October 21, 2024
- Issue Type: Book Built Issue IPO
- Listing At: BSE and NSE
Before participating in the Hyundai IPO, it’s essential for investors to ensure they have a demat account. Investors can open demat account online quickly and easily through various stock trading platforms, allowing them to manage their investments effectively.
Type of Offer
Hyundai Motor India Limited is offering to sell 1,42,194,700 existing shares, with the majority offered by Hyundai Motor Company.
Allotment Structure
The allocation of shares for the IPO is structured as follows:
- 50% for Qualified Institutional Buyers (QIB)
- 15% for Non-Institutional Investors (NII)
- 35% for Retail Individual Investors (RII)
This structured approach aims to ensure a balanced distribution of shares among different types of investors.
Company Profile
Hyundai Motor India Limited, a key subsidiary of the esteemed Hyundai Motor Group, is the second-largest automobile original equipment manufacturer (OEM) in India. Known for delivering reliable and innovative passenger vehicles, the company has consistently led the nation in exports since 2005.
Hyundai’s success is driven by a solid business model that leverages advanced technology and strong relationships with stakeholders. The company maintains its competitive advantage through localized part production and long-term partnerships with customers, dealers, and suppliers. Its market position is further strengthened by a diverse product lineup and a strategic focus on adopting new technologies, especially in the rapidly growing electric vehicle (EV) sector.
Fundamental Analysis of the Hyundai IPO
Hyundai Motor India Limited’s financial performance reflects a generally positive trend, despite some fluctuations. The company has reported rising revenues, along with growth in equity and assets, accompanied by significant improvements in profitability and earnings per share (EPS).
Revenue Trends
The revenue for Hyundai increased from ₹473,784.32 million in March 2022 to ₹603,075.80 million in March 2023. However, the current year’s nine-month period ending December 2023 shows revenue at INR 521,579.11 million, which is below last year’s benchmark.
Equity and Liabilities
The equity position reflects a consistent upward trend, indicating potential for growth and expansion. This positive trajectory can be reassuring for potential investors.
Profitability Insights
Hyundai’s profit after tax (PAT) rose significantly from ₹29,015.91 million in March 2022 to ₹43,828.71 million by December 2023. Such improvements in profitability could instill confidence among investors.
Earnings Per Share (EPS)
The diluted EPS has increased from ₹35.71 in March 2022 to ₹53.94 by December 2023, demonstrating higher earnings available for investors.
Return on Net Worth (RoNW)
The RoNW has improved from 17.21% to 22.16%, suggesting a greater ability to generate returns on shareholder equity, an important metric for potential investors.
Financial Analysis
| Particulars | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in million) | 473,784.32 | 603,075.80 | 521,579.11 |
| Equity (₹ in million) | 168,562.55 | 200,548.18 | 197,779.17 |
| Expenses (₹ in million) | 441,938.42 | 550,910.67 | 473,178.29 |
| Profit After Tax (₹ in million) | 29,015.91 | 47,092.50 | 43,828.71 |
| Diluted EPS (₹) | 35.71 | 57.96 | 53.94 |
| Return on Net Worth (%) | 17.21 | 23.48 | 22.16 |
| NAV per Equity Share (₹) | 207.45 | 246.82 | 243.41 |
| Total Assets (in millions) | 283,580.58 | 345,733.42 | 324,883.44 |
| Total Liabilities (in millions) | 115,018.03 | 145,185.24 | 127,104.27 |
Peer Comparison
In comparison with its peers, Hyundai Motor India Limited shows impressive metrics, particularly in earnings per share and return on equity. Companies like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra present varying financial strengths, but Hyundai consistently stands out.
| Company | Revenue from Operations (₹ in million) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹) |
| Hyundai Motor India Limited | 603,075.80 | 10 | – | 57.96 | 57.96 | 23.48 | 246.82 |
| Maruti Suzuki India Limited | 1,175,713.00 | 5 | 47.28 | 271.82 | 271.82 | 13.29 | 2,045.53 |
| Tata Motors Limited | 3,459,669.70 | 2 | 150.09 | 6.30 | 6.30 | 5.33 | 118.34 |
| Mahindra & Mahindra Limited | 1,212,685.50 | 5 | 30.32 | 92.41 | 91.96 | 18.24 | 506.60 |
Objectives of the Hyundai IPO
The primary objective of this IPO is to enhance visibility and brand image while providing liquidity through the listing of equity shares. This is a strategic move that could attract more investors and boost confidence in the company’s long-term growth prospects.
Risks and Challenges
While the outlook for Hyundai Motor India Limited is positive, there are several risks that need to be considered. The company faces challenges stemming from global market dynamics, reliance on a limited number of suppliers, and exclusive agreements with Hyundai Motor Company (HMC).
Hyundai sources parts and materials from both domestic and international suppliers, which makes it susceptible to fluctuations in global commodity prices and changes in trade agreements. Any disruptions in the supply chain could adversely affect production costs and sales. Furthermore, dependence on HMC for parts and technical support presents potential risks that could impact the company’s operations.
Investors may also consider incorporating derivative trading into their strategy to hedge their bets or enhance their potential returns as they navigate the Hyundai IPO.
Industry and Market Potential
The passenger vehicle (PV) industry has shown robust growth from Fiscal 2019 to 2023, boasting an 11% CAGR in industry value. This growth is largely driven by an 8% CAGR in average vehicle prices and a 3% CAGR in total sales volumes. The surge in customer preference for SUVs has significantly influenced market dynamics, with compact SUVs now comprising 50% of PV sales.
Government incentives, including FAME subsidies and tax reductions, coupled with initiatives like Production-Linked Incentive (PLI) schemes, are accelerating the adoption of electric vehicles. Rising environmental awareness and enhanced infrastructure further contribute to the sector’s expansion.
As investors prepare for the Hyundai IPO, it’s beneficial to leverage a mutual funds app for managing their investments and exploring additional opportunities in the market.
How to apply for IPO using HDFC Sky’s One-Click feature
HDFC Sky’s One-Click feature simplifies the IPO application process, delivering a streamlined user experience. Follow these steps to apply for the Hyundai IPO:
- Login to HDFC Sky: Enter your credentials to access your account.
- Navigate to IPO section: Select “Indian Stocks” under your profile, then click “IPO.”
- Select the Hyundai IPO: Choose Hyundai from the IPO list and click “Apply Now.”
- Enter your bid: Provide your bid details and adjust your application preferences.
- Proceed to payment: Pay using UPI.
- Approve mandate: Use your UPI app to approve the payment mandate.
- Place your order: Finalise your application by placing your order.
Features of HDFC Sky’s One-Click IPO:
- Simple process: Apply in just one click with minimal paperwork.
- Real-time notifications: Stay informed about your application, allotment, and refund status instantly.
- Unified platform: Manage all IPO investments in one place.
- Convenient access: Apply on the go via the app or portal.
Hyundai’s IPO offers growth potential with stability. With HDFC Sky’s One-Click feature, this investment becomes even more accessible. Don’t miss this chance to join a major IPO with ease.
