Hyundai Motor India IPO A Closer Look

India is preparing to launch its Initial Public Offering (IPO) soon, marking a significant milestone for the company. As one of the largest car manufacturers in India, Hyundai's upcoming IPO has generated considerable excitement among investors. This offering provides an opportunity for both retail and institutional investors to acquire a stake in a leading player in the Indian automotive market.

Let’s look at the Hyundai IPO, and how HDFC Sky’s ‘One-Click IPO’ makes investing easier.

Investors looking to participate in the IPO can do so through the best trading app in India to simplify the process and maximise returns.

Understanding the Hyundai Motor India IPO

Hyundai Motor India is a wholly-owned subsidiary of Hyundai Motor Company, Korea. Since its establishment in 1996, Hyundai has emerged as a leading automotive manufacturer in India, recognized for producing popular vehicles like the i20, Creta, and Venue. The company has steadily increased its market share in the country, making the upcoming IPO an appealing opportunity for those interested in the automobile sector.

IPO Details

The Hyundai Motor India IPO is scheduled for bidding from October 15, 2024, to October 17, 2024. The price range is set between ₹1,865 and ₹1,960 per share, with a minimum investment of ₹13,055 for a lot of 7 shares. The issue size is estimated at ₹27,870.16 crore, making it one of the largest IPOs of the year. Below is a table summarising the key details:

IPO Details

Values

Bidding Dates

15 Oct 2024 - 17 Oct 2024

Price Range

₹1,865 - ₹1,960

Minimum Investment

₹13,055

Lot Size

7 shares

Issue Size

₹27,870.16 crore

Investors planning to apply for this IPO can benefit from open free demat account online services, which are offered by multiple platforms. These services streamline the investment process, making it easier to participate in IPOs without the hassle of paperwork.

Strengths of Hyundai Motor India

Hyundai Motor India’s position as one of the top automotive manufacturers in India is backed by several key strengths. These advantages have contributed to its growth and will be instrumental in attracting investors.

1. Strong Production and Export Capabilities

Hyundai Motor India has exported over 3.53 million passenger vehicles to more than 150 countries, including major markets such as Latin America, Africa, and the Middle East. As a production and export hub for emerging markets, Hyundai's operations play a crucial role in the company's global strategy. Popular models like the Verna and Venue significantly contribute to this export success.

2. Diverse Vehicle Portfolio

Hyundai's current vehicle portfolio is diverse, catering to a wide range of customer preferences. The company offers 13 different passenger vehicle models across major segments, including sedans, hatchbacks, and SUVs. Some of the most popular models include:

• Sedans: Aura, Verna

• Hatchbacks: Grand i10 NIOS, i20, i20 N Line

• SUVs: Exter, Venue, Venue N Line, Creta, Creta N Line, Alcazar, Tucson, Ioniq 5

3. Robust R&D and Local Customisation

Hyundai’s Research and Development (R&D) centre in Hyderabad plays a crucial role in the company’s innovation efforts. The centre collaborates with Hyundai's central R&D hub in Korea and is poised to become a global hub for compact passenger vehicle development. Hyundai Motor India Engineering Private Limited (HMIEPL) also provides technical expertise for local market customisation, further strengthening the company’s competitive edge.

Financial Performance of Hyundai Motor India

Hyundai Motor India has shown consistent financial growth over the past few years, making its IPO an attractive proposition. The company’s revenue from operations increased significantly from ₹40,972.25 crore in 2021 to ₹60,307.58 crore in 2023, a growth of almost 47%. This impressive performance is reflected in the table below:

Year

Revenue (₹ Cr)

Total Assets (₹ Cr)

Profit (₹ Cr)

2021

40,972

47,378

60,308

2022

47,378

60,308

60,308

2023

60,308

N/A

N/A

This robust financial standing, coupled with strong market leadership, makes Hyundai a strong contender in the Indian automotive sector, attracting both long-term and short-term investors.

Risks to Consider

While the Hyundai Motor India IPO presents an exciting opportunity, there are some risks that potential investors should keep in mind:

1. Market Dependency: The company's revenue is heavily reliant on the Indian automobile market. Any fluctuations in market demand, regulations, or fuel prices can impact the company’s profitability.

2. Global Competition: Hyundai faces stiff competition not only from domestic manufacturers but also from international brands. The competitive landscape could affect market share and profitability.

3. Supply Chain Disruptions: The automotive industry has faced several supply chain challenges, especially with semiconductor shortages. These disruptions can delay production and delivery, impacting revenue growth.

Despite these risks, the strong fundamentals of Hyundai Motor India position it as a resilient player in the automotive industry. For those interested in participating in the IPO, using an F&O trading app could help optimise trading strategies, particularly for those engaging in futures and options trading.

Application Process for Hyundai Motor India IPO

To invest in the Hyundai Motor India IPO, potential investors must submit an application. The application process is simple and straightforward. Eligible individuals can apply under various categories, including Regular, Employee, and High Networth Individual (HNI). The maximum investment limit for Regular and Employee applicants is ₹2 lakh. HNIs can invest between ₹2 lakh and ₹5 lakh.

Investor Category

Price Band (₹)

Maximum Application (₹)

Regular

1,865 - 1,960

2 Lakh

Employee

1,679 - 1,774

2 Lakh

High Networth Individual

1,865 - 1,960

2 - 5 Lakh

Investors can seamlessly apply through platforms that offer demat account services. With the integration of digital tools and apps, the entire process, from account opening to IPO application, has become highly efficient and user-friendly.

How to apply for IPO using HDFC Sky's One-Click feature

HDFC Sky’s One-Click IPO feature simplifies the application process, creating a seamless user experience. To apply for the Hyundai IPO, follow these steps:

1. Login to HDFC Sky: Access your account by entering your credentials.

2. IPO section: Navigate to “Indian Stocks” and select the “IPO” option.

3. Choose Hyundai IPO: Find Hyundai IPO and click “Apply Now.”

4. Enter bid and adjust: Add your bid details and customise as needed.

5. Make payment: Opt to pay via UPI.

6. Approve mandate: Use your UPI app to approve the payment mandate.

7. Complete application: Confirm and place your order.

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

• Quick application: Apply with one click and minimal paperwork.

• Real-time updates: Stay updated on application status, allotments, and refunds.

• Centralised management: Manage IPOs seamlessly from a single platform.

• Anywhere access: Apply using the HDFC Sky app or online portal.

Hyundai’s IPO is a great investment opportunity, and HDFC Sky’s One-Click IPO makes it easier to engage with.

(Disclaimer: The above press release comes to you under an arrangement with HT Syndication and PTI takes no editorial responsibility for the same.). PTI PWR
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(This story has not been edited by THE WEEK and is auto-generated from PTI)