Hyundai Motor India Limited (HMIL), a subsidiary of the Hyundai Motor Group, is set to launch one of the largest IPOs in recent Indian history. The company plans to raise ₹25,000 crore through this public offering, marking its debut on the stock market. Following the footsteps of other major automakers like Maruti Suzuki, the IPO is scheduled for October 15-17, 2024, and is expected to have a substantial impact on the Indian stock market.
Participating in the Hyundai IPO is a straightforward process. If you haven’t already, the firststep is to open free demat account online. A demat account is essential for holding shares electronically. Numerous online brokers offer quick and easy account setups, which can be done in a matter of minutes.
Here’s a detailed insight into the Hyundai IPO, complemented by HDFC Sky’s ‘One-Click IPO’ tool to enhance your investing experience.
The Significance of Hyundai Motor India
Hyundai Motor India Limited (HMIL), established in 1996, has become a prominent player in the Indian automotive market. As the country’s second-largest carmaker, HMIL offers a diverse range of vehicles, from sedans to electric vehicles (EVs), under the globally renowned Hyundai brand. With models like Creta, Grand i10 NIOS, and Ioniq 5, Hyundai is a major force in the SUV and EV segments in India. Over the years, Hyundai has solidified its market position, with 12 million cumulative sales both domestically and through exports by March 2024.
The Hyundai Motor India IPO is significant not only due to its size but also due to its potential returns. The company aims to list its shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). With a price band set between ₹1,865 and ₹1,960 per share and a lot size of seven shares, the IPO is structured as a book-built issue of 14.22 crore shares.
For seasoned investors with experience in commodity trading, this IPO offers a great way to diversify portfolios by adding shares from the growing automobile sector.
Key Financials of Hyundai Motor India
Hyundai Motor India has exhibited strong financial performance in recent years. For the nine months ending December 31, 2023, the company’s revenue from operations reached ₹52,157.91 crore, with a comprehensive income of ₹4,376.52 crore. In FY23, total revenue reached ₹60,307.58 crore, and net income stood at ₹4,692.01 crore. These figures demonstrate Hyundai’s resilience and ability to maintain growth in a challenging market.
To attract more investors, Hyundai plans to utilise its IPO funds for future expansions, further solidifying its dominance in the Indian market. Those interested in investing can easily participate by using a demat app for faster and more efficient trading.
Financial Year | Revenue (₹ Crore) | Net Income (₹ Crore) |
FY22 | 47,378.43 | 2,904.29 |
FY23 | 60,307.58 | 4,692.01 |
9 Months (2023) | 52,157.91 | 4,376.52 |
Hyundai’s strong financials provide a positive outlook for potential investors. The brand’s established presence, coupled with robust revenue growth, ensures that the IPO will be a promising opportunity for those looking to diversify their portfolios.
Why Invest in Hyundai IPO?
There are several reasons why the Hyundai IPO is generating so much excitement. Firstly, it’s one of the largest IPOs India has seen since Life Insurance Corporation (LIC) went public. Investors are keen to seize the opportunity, given Hyundai’s reputation and consistent performance in the passenger vehicle market. Additionally, the IPO offers investors a chance to participate in the growing EV market, where Hyundai is already a leading player.
Moreover, Hyundai Motor India has consistently increased its market share and remained a key exporter of vehicles, which strengthens its position in the global market. This IPO is not just about raising capital but also about providing retail and institutional investors with a stake in one of the most successful automotive brands in India.
The process to invest in this IPO is simple. If you’re new to the stock market, now is an excellent time to expand your investments by purchasing shares through this IPO.
Hyundai Motor India: A Legacy of Innovation
Since its inception, Hyundai Motor India has focused on offering innovation, quality, and sustainability. The company is well-known for its modern vehicle designs, advanced technology, and competitive pricing. The brand’s portfolio includes a mix of budget-friendly cars and premium models, catering to a wide audience. By focusing on fuel efficiency, Hyundai has also made significant strides in electric mobility with its Ioniq range of EVs, helping the company stay ahead in the evolving automotive industry.
This innovation-driven approach makes the Hyundai IPO a compelling investment opportunity. Hyundai is well-positioned to benefit from the increasing demand for both internal combustion engine (ICE) vehicles and electric vehicles (EVs), particularly in India, where the EV market is growing rapidly due to government incentives and a shift towards eco-friendly transport.
What You Need to Know About the Hyundai IPO
Here are some of the critical details for investors interested in the Hyundai IPO:
- IPO Date: October 15 to October 17, 2024
- Price Band: ₹1,865 to ₹1,960 per share
- Lot Size: 7 shares
- Issue Size: ₹27,870.16 crore
- Registrar: KFin Technologies Limited
- Listing: BSE and NSE
To stay informed about the IPO status and ensure timely participation, open a demat account. Due to the significant size of the Hyundai Motor India IPO, it is expected to be oversubscribed. Therefore, investors must be prepared to submit their bids promptly.
Once your demat account is activated, you can place your bid for Hyundai’s shares through the IPO. Ensure you have sufficient funds in your linked bank account to cover your bids. The allotment results will be announced on October 18, 2024, and the shares will be listed on the exchanges starting October 22, 2024.
How to apply for IPO using HDFC Sky’s One-Click feature
With HDFC Sky’s One-Click IPO feature, the IPO application process has never been easier. Here’s a quick guide to applying for the Hyundai IPO:
- Login to HDFC Sky: Begin by accessing your account with your login details.
- Find the IPO section: Click on “Indian Stocks” in your profile, then select “IPO.”
- Choose the Hyundai IPO: Locate the Hyundai IPO in the list and select “Apply Now.”
- Enter bid details: Fill in your bid information and customise your application if needed.
- Proceed with payment: Select UPI as your payment method.
- Approve the mandate: Use your UPI or banking app to authorise the payment.
- Finalise your order: Confirm your application by placing your order.
HDFC Sky’s One-Click IPO features include:
- Seamless application: Apply in just one click, minimising documentation and errors.
- Instant notifications: Stay informed with real-time updates about your application status and refunds.
- All-in-one management: Oversee all your IPO investments from a single platform.
- Flexible access: Apply from anywhere using the HDFC Sky mobile app or online portal.
The Hyundai IPO offers a significant investment opportunity, combining growth potential with stability. With HDFC Sky’s One-Click IPO feature, the application process becomes simpler and more user-friendly.