Hyundai Prepares for October 15, 2024 IPO Launch

Hyundai Motor India is preparing to launch its initial public offering (IPO) on October 15, 2024, in what is set to be the largest IPO in Indian market history. Through an offer for sale (OFS) of up to 14.2 crore shares, Hyundai aims to raise anywhere between Rs.26,505 crore and Rs.27,856 crore, with the share price set between Rs.1,865 and Rs.1,960 per share.

Key Dates & How to Get In

The IPO subscription will be open to institutional investors starting on October 14,2024 while retail investors can bid between October 15 and October 17,2024. Retail investors are required to bid for a minimum of seven shares, bringing the minimum investment to Rs.13,720. Hyundai’s shares are expected to be listed on the NSE and BSE on October 22, 2024. The Hyundai IPO allotment is likely to be finalised on October 18, 2024.

What’s the IPO About?

This IPO will be executed entirely through the OFS route, where Hyundai’s South Korean parent company will sell up to 17.5% of its stake in the Indian subsidiary. No new shares will be issued as part of the IPO, and the proceeds will be directed to the parent company. As such, the Indian arm of Hyundai will not receive any direct funds for operations or expansion.

Financials

Hyundai Motor India has shown consistent financial growth. For Q1FY25, the company reported a net profit of Rs.1,489.65 crore and revenues of Rs.17,567.98 crore. For FY24, the company posted a net profit of Rs.6,060.04 crore on revenues of Rs.71,302.33 crore, reflecting steady year-on-year growth.

Should You Invest?

The IPO offers investors an opportunity to buy into one of India’s leading automotive companies. However, potential investors should consider that the proceeds from the IPO will not contribute to Hyundai’s Indian operations. Additionally, while Hyundai is a major player in the Indian market, the company operates in a highly competitive industry, which could present challenges.

As Hyundai Motors prepares for its stock listing, the Hyundai Motor Share Price is expected to draw attention from investors eager to see its post-IPO performance.

Conclusion: In conclusion, Hyundai’s IPO presents an opportunity for investors seeking to participate in a large, well-established company. However, careful consideration of market conditions and the company’s future growth prospects is required

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.