Hyundai Motor IPO: What Investors Should Know Before Subscribing

The much-anticipated Hyundai Motor IPO is set to open for subscription on October 15, 2024 and close on October 17, 2024. With an issue size of a massive Rs 27,870.16 crore, it has garnered substantial attention from both retail and institutional investors. Hyundai Motor is one of the world's largest automotive manufacturers, and this IPO marks a significant milestone in the history of stock in India, highlighting the growth of the Indian stock market.

Let’s analyse in-depth the Hyundai IPO and how HDFC Sky’s ‘One-Click IPO’ tool makes investing easy.

Key Details of the Hyundai Motor IPO

The Hyundai Motor IPO is a Book Built Issue with a total of 142.19 million shares being offered for sale. The IPO is purely an Offer for Sale (OFS), meaning no fresh shares will be issued, and the proceeds from the IPO will go to the selling shareholder. The issue includes a reservation of 778,400 shares for employees at a discount of Rs 186 per share.

Here’s a breakdown of the most important details:

Hyundai Motor IPO Details Numbers

Issue Type Book Built Issue IPO

Total Issue Size Rs 27,870.16 Cr (142.19 million shares)

Offer for Sale 142.19 million shares

Price Band Rs 1865 to Rs 1960 per share

Lot Size 7 shares per lot

Minimum Investment (Retail) Rs 13,720 (1 lot = 7 shares)

Maximum Investment (Retail) Rs 192,080 (14 lots = 98 shares)

Issue Opens October 15, 2024

Issue Closes October 17, 2024

Tentative Listing Date October 22, 2024

Investors who are interested in this historic opportunity can easily participate by open free demat account through various platforms to simplify the process of investing.

Hyundai Motor's Financial Performance

Investors evaluating the IPO should also consider Hyundai Motor’s recent financial performance. The company's Revenue increased by 16%, while its Profit After Tax (PAT) surged by 29% between March 2023 and March 2024. This strong financial performance enhances the appeal of the IPO, attracting investors who are keen on long-term growth.

Financial Summary of Hyundai Motor India 

Particulars FY 2023 (Rs  Crore) FY 2024 (Rs  Crore)

Revenue 61,436.64 71,302.33

Profit After Tax (PAT) 4,709.25 6,060.04

Total Assets 34,573.34 26,349.25

Key Considerations for Investors

Investors planning to participate in the Hyundai Motor IPO should be aware of the following points:

● Pricing: The price band for the IPO is set at Rs 1865 to Rs 1960 per share. With a minimum application size of 7 shares, retail investors need at least Rs 13,720 to bid for one lot.

● Reservation: The IPO offers up to 50% of the shares to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NII), and 35% to Retail Investors. This allocation ensures a balanced distribution of shares across investor categories.

How to Participate in the Hyundai Motor IPO?
Interested investors can participate in the Hyundai Motor IPO by a stock market app. This makes the process convenient and accessible, especially for those who prefer managing their investments on the go.
1.    Open a Free Demat Account: Investors need a demat account to apply for the IPO. Many brokers and platforms offer free demat account openings. Once the account is set up, investors can place their bids directly from the platform.
2.    Use a Mobile Stock Trading App: Many investors prefer using a mobile stock trading app to participate in IPOs. These apps make the process seamless, allowing users to apply, track, and manage their investments efficiently.
3.    Place Your Bid: Based on the minimum lot size of 7 shares, investors can place bids ranging from ₹13,720 for a single lot to ₹192,080 for 14 lots. Retail investors must ensure their bids are placed within the price band of ₹1865 to ₹1960 per share.
 

Why Should You Consider the Hyundai Motor IPO?

The Hyundai Motor IPO offers several advantages to investors. For starters, Hyundai Motor has a strong presence in the Indian and global automotive markets, backed by a robust product portfolio that includes SUVs, sedans, and electric vehicles. As of March 2024, Hyundai has sold nearly 12 million passenger vehicles in India, demonstrating its solid market presence.

Moreover, Hyundai’s focus on innovation, technology, and sustainability aligns with the evolving automotive landscape, particularly the growing demand for electric vehicles (EVs). Hyundai’s extensive dealer and service network further enhances its market strength, with over 1,366 sales points and 1,550 service points across India.

Another crucial factor is Hyundai’s strong financial health. With a rising revenue and profit trajectory, investors can look forward to potential long-term returns. Additionally, the company's Return on Capital Employed (ROCE) stands at 13.69%, and its Return on Net Worth (RoNW) is 12.26%, which are healthy indicators for long-term investors.

How to apply for Hyundai IPO Using HDFC Sky’s One-Click-IPO

With HDFC Sky’s One-Click IPO feature, applying for IPOs has never been easier. Follow these steps to apply for the Hyundai IPO:

1. Login to HDFC Sky: Access your account using your credentials.

2. Navigate to IPO section: Go to "Indian Stocks" under your profile, then click on "IPO."

3. Select Hyundai IPO: Find Hyundai in the IPO list and click "Apply Now."

4. Enter your bid: Customise your bid and application details.

5. Proceed to payment: Pay using UPI.

6. Approve mandate: Approve the payment through your UPI app.

7. Confirm and submit: Finalise the process by placing your order.

Key features of HDFC Sky’s One-Click IPO:

● Effortless application: Apply with just a click, avoiding lengthy paperwork.

● Real-time tracking: Get instant updates on your application and allotment.

● All-in-one platform: Manage all IPO applications easily.

● Anywhere access: Apply using the mobile app or portal from anywhere.

Hyundai’s IPO offers a blend of growth potential and stability. The One-Click IPO feature from HDFC Sky makes this opportunity easier to access, streamlining the process for investors.