The Hyundai Motor India IPO is one of the most eagerly awaited public issues of 2024. As Hyundai Motors prepares for its debut on the Indian stock exchanges, investors are closely monitoring the developments around this IPO.
With the Draft Red Herring Prospectus (DRHP) now available, here are 10 key things you need to know about the Hyundai Motor India IPO.
Hyundai Motor IPO Key Details
| Detail | Information |
|---|---|
| IPO Size | Offer for Sale (14.22 crore shares) |
| IPO Dates | TBA |
| Price Band | TBA |
| Lead Managers | Kotak Mahindra, Citigroup, HSBC, J.P. Morgan, Morgan Stanley |
| Registrar | Kfin Technologies |
| Revenue (9 months ending Dec 2023) | ₹32,488.34 crore |
| Net Profit (9 months ending Dec 2023) | ₹4,382.87 crore |
| Competitors | Maruti Suzuki, Tata Motors, Mahindra & Mahindra |
| GMP | ₹411 |
1. Hyundai Motor IPO Size
The IPO will be a book-built offer consisting entirely of an offer for sale (OFS). The promoter-selling shareholders are offering 142,194,700 shares (approximately 14.22 crore shares) of face value ₹10 each.
2. Hyundai Motor IPO Dates
As of now, the exact IPO dates are yet to be announced. Once finalized, the shares will be listed on both the BSE and NSE.
3. Hyundai Motor IPO Price Band
The price band for Hyundai Motor’s IPO has not yet been disclosed. Investors are advised to keep an eye on official announcements for updates.
4. Lead Managers and Registrar
The book-running lead managers (BRLM) for the Hyundai Motor IPO are:
- Kotak Mahindra Capital Company Limited
- Citigroup Global Markets India Private Limited
- HSBC Securities & Capital Markets Pvt Ltd
- J.P. Morgan India Private Limited
- Morgan Stanley India Company Pvt Ltd
The registrar for the issue is Kfin Technologies Limited.
5. Key Risks
Like any investment, Hyundai Motor’s IPO comes with its own set of risks. According to the DRHP, some of the key risks include:
- Rising input costs: Increases in the prices of parts and materials could adversely affect Hyundai’s profit margins.
- Supplier dependency: The company relies on a limited number of suppliers for critical parts. Any disruption in supply chains could negatively impact operations.
6. IPO Objectives
The entire offer proceeds will go to the promoter-selling shareholder after deducting offer-related expenses and applicable taxes. Hyundai Motors will not receive any proceeds from the IPO.
7. Hyundai Motor Financials
As per the DRHP, Hyundai Motor India’s revenue for the nine months ending December 31, 2023, stood at ₹32,488.34 crore, with a net profit of ₹4,382.87 crore. The company reported an impressive profit margin of 13.5%, showcasing its operational strength.
8. Key Competitors
Hyundai Motor India competes with several well-established players in the automotive sector, including:
- Maruti Suzuki India Ltd
- Tata Motors Ltd
- Mahindra & Mahindra Ltd
9. About Hyundai Motor India
Hyundai Motor India is a subsidiary of the global Hyundai Motor Group, the third-largest automotive manufacturer globally by passenger vehicle sales. Established in May 1996, the company is a key player in the Indian automotive market, manufacturing and selling a wide range of four-wheeler passenger vehicles. The company also produces transmissions and engines.
10. Grey Market Premium (GMP)
The grey market premium (GMP) for the Hyundai Motor IPO currently stands at ₹411. This indicates a strong expectation of a premium listing from market participants. While the IPO price is yet to be announced, the high GMP suggests positive investor sentiment.
Conclusion
The Hyundai Motor India IPO is shaping up to be a landmark event in the Indian stock market. With a robust financial performance and a strong market presence, Hyundai Motors is likely to attract significant interest from both retail and institutional investors. Keep a close watch on the official IPO dates and price band announcements to make an informed investment decision.
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Disclaimer
The information provided in this article is for educational and informational purposes only. The stock market involves risks, and the performance of any stock is subject to market conditions and individual financial decisions. Readers should conduct their own research or consult with a financial advisor before making investment decisions. We are not responsible for any losses that may arise from decisions based on this content.
