Hyundai Motor IPO: What You Need to Know

Key Details About Hyundai Motor India’s IPO

1. IPO Dates
   • The IPO will be open for subscription from October 15 to October 17, 2024. Anchor book details will be available on October 14.
2. Price Band
   • The price range for the IPO is set at ₹1,865 to ₹1,960 per share.
3. IPO Size
   • Hyundai IPO aims to raise ₹27,870.2 crore by offering 14.2 crore equity shares through an offer-for-sale by its parent, Hyundai Motor Company. Employees can buy shares at a discount of ₹186 each.
4. Purpose of the IPO
   • The funds will go to the parent company as it’s an offer-for-sale. The goal is to complete the sale and benefit from listing on stock exchanges.
5. Share Reservations
   • Half of the public issue is reserved for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors. Retail investors can bid for at least seven shares.
6. Company Profile
   • Hyundai Motor India is the second-largest passenger vehicle manufacturer in India, with a market share of about 15%. The company has a strong product lineup and a manufacturing plant in Chennai with a capacity of 8,24,000 units.
7. Financial Performance
   • In FY24, the company’s net profit rose by 28.7% to ₹6,060 crore, with revenue increasing by 15.8% to ₹69,829 crore. For Q1 FY25, profit was ₹1,489.6 crore, up by 12.1% from last year.
8. Promoter and Dividends
   • Hyundai Motor Company owns 100% of Hyundai Motor India. The Indian unit paid a total dividend of ₹10,782.4 crore in FY24, significantly up from ₹4,653.4 crore in FY23.
9. Risk Factors
   • Potential risks include strong competition, inability to increase market share, reliance on limited suppliers, and production disruptions.
10. IPO Allotment and Listing Dates
    • The Hyundai IPO allotment of shares will be finalised by October 18, with shares credited to investor accounts by October 21. Trading will start on October 22. Currently, shares are trading at a 2-3% premium in the grey market.

This historic IPO marks a significant event in India’s capital markets, following the LIC’s ₹21,000 crore public issue in 2022.

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.