Hyundai Motor India IPO: Key Highlights, Risks, and Market Buzz

India’s IPO surge is being driven by positive economic conditions, strong investments in domestic mutual funds, and significant capital growth. The rapid expansion of the Indian stock market is in line with the rise in IPOs, showing increased interest from investors.

Hyundai Motor India is drawing attention with its planned Initial Public Offering (IPO). Key details from the Draft Red Herring Prospectus (DRHP) are as follows.

Hyundai Motor IPO Size

The IPO will be a complete offer for sale of 14.22 crore shares, each with a face value of ₹10.

Hyundai Motor IPO Dates

The dates for the IPO have not been announced yet. The shares will be listed on both stock exchanges, BSE and NSE.

Hyundai Motor IPO Price Band

The price band for the IPO is still to be decided.

Hyundai Motor IPO Registrar and Lead Managers

The lead managers for the IPO are Citigroup Global Markets, Kotak Mahindra Capital, HSBC Securities, J.P. Morgan India, and Morgan Stanley India. Kfin Technologies will act as the registrar.

Hyundai Motor IPO Key Risks

Rising costs of parts and materials could negatively impact business operations. The company also relies on a limited number of suppliers, and any disruption in supply could affect production.

Hyundai Motor IPO Objectives

The company will not get any money from the IPO. All the proceeds will go to the Promoter Selling Shareholder after covering the related expenses and taxes, which they will pay.

Hyundai Motor Financials

For the nine months ending December 31, 2023, Hyundai Motor reported revenues of ₹32,488.34 crore and a net profit of ₹4,382.87 crore, with a profit margin of 13.5%.

Hyundai Motor Peers

Competitors listed in the DRHP include Maruti Suzuki, Tata Motors, and Mahindra & Mahindra.

About Hyundai Motor

Established in May 1996, Hyundai Motor India is part of the Hyundai Motor Group, the world’s third-largest car manufacturer by passenger vehicle sales. The company produces and sells reliable and innovative cars, along with components like transmissions and engines.

Hyundai Motor Grey Market Premium (GMP)

The grey market premium for Hyundai Motor shares is ₹411, indicating market expectations of a premium listing, although the official IPO price is yet to be disclosed.

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.