Tentative timeline for Hyundai Motor IPO
Event
|
Date
|
Issue opening date
|
October 15, 2024
|
Issue closing date
|
October 17, 2024
|
Basis of allotment
|
October 18, 2024
|
Initiation of refunds
|
October 21, 2024
|
Credit of shares to Demat accounts
|
October 21, 2024
|
IPO listing date
|
October 22, 2024
|
Hyundai Motor IPO Lot Size
Investors can place bids starting with a minimum of 7 shares and in multiples thereafter. The table below illustrates the range of investment for both retail investors and high-net-worth individuals (HNIs), outlining the corresponding minimum and maximum shares and amounts.
Particulars
|
Lot
|
Shares
|
Amount
|
Retail (Min)
|
1
|
7
|
Rs. 13,720
|
Retail (Max)
|
14
|
98
|
Rs. 192,080
|
S-HNI (Min)
|
15
|
105
|
Rs. 205,800
|
S-HNI (Max)
|
72
|
504
|
Rs. 987,840
|
B-HNI (Min)
|
73
|
511
|
Rs. 1,001,560
|
Reservation quota breakdown
Investor Category
|
Allocation
|
Anchor Investor Shares
|
30%
|
Qualified Institutional Buyers (QIBs) shares
|
20%
|
Non-Institutional Investors (NIIs) shares
|
15%
|
Retail Individual Investors (RIIs)
|
35%
|
Employee Shares
|
0.55%
|
Disclaimer: All details mentioned above were fetched on 14th October 2024. These values are subject to change based on various factors such as market conditions, company performance, and economic trends. Please refer to the SEBI or stock exchanges' websites to obtain the most current market capitalisation for any particular stock.
Why is Hyundai going public?
Hyundai Motor India Limited’s decision to go public is driven by several strategic factors. By listing on the Indian stock exchanges, Hyundai aims to enhance its brand visibility and establish a direct connection with the capital markets. This move also allows the parent company, Hyundai Motor Company, to monetise its investment and provide an opportunity for Indian investors to participate in the growth story of a leading automobile manufacturer.
About Hyundai Motor India Limited
Incorporation: Hyundai Motor India Limited was incorporated in 1996 as a wholly owned subsidiary of Hyundai Motor Company, South Korea.
Manufacturing: The company operates a state-of-the-art manufacturing facility in Tamil Nadu, which can produce a wide range of vehicles catering to different segments.
Market presence: Hyundai has established itself as one of the leading automobile manufacturers in India, known for its innovative models and customer-centric approach.
Product portfolio: The company offers a diversified product range, including popular models like the Hyundai Creta, i20, and Verna, which have consistently performed well in the Indian market.
Hyundai Motor India's financial performance
Hyundai Motor India's financial performance over the years has been robust, reflecting its strong market position and operational efficiency. Below is a summary of key financial metrics:
| Metric |
FY 2023 (Rs. Million) |
FY 2022 (Rs. Million) |
FY 2021 (Rs. Million) |
| Revenue from Operations |
603,075.80 |
473,784.32 |
409,722.51 |
| - Domestic (in %) |
76.59 |
78.8 |
81.21 |
| - Exports (in %) |
23.41 |
21.2 |
18.79 |
| Profit for the Year |
47,092.50 |
29,015.91 |
18,811.56 |
| EBITDA |
75,487.80 |
54,860.89 |
42,456.61 |
| EBIT |
53,589.14 |
33,165.03 |
22,724.96 |
| Net Worth |
200,548.18 |
168,562.55 |
153,113.43 |
| ROCE |
28.75% |
20.37% |
15.38% |
Terminologies explained:
Revenue from operations: Income generated from the company's core business activities, such as sales of cars in domestic and export markets.
Domestic: Revenue generated from sales within India.
Exports: Revenue generated from sales in international markets.
Profit for the year: The net income after all expenses, taxes, and costs have been deducted.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortisation; a measure of a company’s operating profitability.
EBIT: Earnings Before Interest and Taxes; indicates a company's profitability from its core operations.
Net worth: Total assets minus liabilities, representing the equity shareholders hold in the company.
ROCE (Return on Capital Employed): A ratio that indicates the efficiency and profitability of a company’s capital investments.
Strength and risks of Hyundai
Understanding the strengths and risks of Hyundai Motor India Limited is crucial for making an informed investment decision.
Strength of Hyundai Motor
Market leadership: Hyundai is a dominant player in the Indian automotive market, with a strong presence across various segments.
Innovative technology: The company is known for incorporating advanced technology and innovative features in its vehicles, which enhances its appeal among customers.
Extensive distribution network: Hyundai has a robust distribution network across India, ensuring wide availability and strong after-sales service.
Brand reputation: Hyundai enjoys a strong brand reputation in India, built over decades of delivering quality products and excellent customer service.
Top risks to consider before applying for the Hyundai IPO
Intense competition: The Indian automotive market is highly competitive, with several established players and new entrants vying for market share, which could impact Hyundai’s sales and profitability.
Economic sensitivity: The automotive industry is closely tied to economic cycles. Any downturn in the economy could affect consumer spending on vehicles, thereby impacting Hyundai’s financial performance.
Regulatory challenges: Changes in environmental and safety regulations can impose additional costs on automobile manufacturers. Hyundai must continuously adapt to these changes to remain compliant and competitive.
Currency fluctuations: As a subsidiary of a South Korean company, Hyundai Motor India is exposed to currency risks, particularly related to the import of components and raw materials.
What’s in it for investors?
Investors looking at the Hyundai Motor India Limited IPO have the opportunity to invest in a company with a solid market presence and strong financials. Hyundai’s established brand, coupled with its focus on innovation and customer satisfaction, positions it well for future growth. Additionally, the company’s consistent financial performance and prudent management make it a potentially attractive investment. However, investors should also weigh the risks, such as market competition and economic factors, before making a decision.
Conclusion
The Hyundai Motor India Limited IPO offers a unique opportunity for investors to participate in the growth story of one of India’s leading automobile manufacturers. With a strong brand, solid financials, and a strategic market presence, Hyundai is well-positioned for the future. As always, it is essential to consider both the strengths and risks before making an investment decision.
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