Understanding the Hyundai Motor India IPO: A Comprehensive Overview

VMPL
New Delhi [India], October 14: Hyundai Motor India Limited (HMIL), a significant player in the Indian automobile sector, is gearing up for its initial public offering (IPO), which aims to raise capital for strategic initiatives.
This article delves into the details surrounding the Hyundai IPO and and how HDFC Sky's 'One-Click IPO' simplifies the investment process.
Company Overview
Hyundai Motor India was established in May 1996 and is part of the Hyundai Motor Group, the third-largest auto original equipment manufacturer (OEM) globally based on passenger vehicle sales.
Renowned for producing reliable and innovative vehicles, HMIL has a diverse portfolio that includes sedans, hatchbacks, SUVs, and electric vehicles (EVs), alongside key components such as transmissions and engines. This diversified range has helped the company secure a robust market position in India.
Core Business and Market Position
Hyundai Motor India stands as a leading entity in the Indian automobile market, providing mobility solutions through an extensive network of 1,366 sales points and 1,550 service points across the country. By March 31, 2024, HMIL had successfully sold nearly 12 million passenger vehicles. The lineup features popular models like the Grand i10 NIOS, i20, Verna, Creta, and the all-electric SUV Ioniq 5.
The company operates a modern manufacturing facility near Chennai, producing vehicles for both domestic and international markets, including regions such as Africa, the Middle East, and South Asia. This strong foundation positions Hyundai Motor India as a formidable competitor within the industry.
Hyundai Motor India IPO Details
The Hyundai Motor India IPO is structured as a book-built issue, valued at Rs27,870.16 crores and consisting entirely of an offer for sale of 14.22 crore shares. Notably, the company will not receive any proceeds from this offering; instead, all funds will be directed to the Promoter Selling Shareholder. This approach allows existing shareholders to divest their holdings, providing liquidity while not directly financing company operations.
If you're looking for a smooth way to invest in IPOs, using a reliable stock market app can enhance your experience.
Purpose of the IPO
The primary aim of the Hyundai Motor India IPO is to raise capital for several strategic objectives, including:
* Expanding manufacturing capacity
* Investing in research and development
* Meeting working capital requirements
Expected Funds to be Raised
Hyundai Motor India's IPO is anticipated to raise Rs27,870.16 crores through the offer for sale. Given that the proceeds will not be utilised for direct business expansion, it serves as an opportunity for current shareholders to liquidate portions of their holdings.
Key Dates to Remember
- IPO Open Date: Tuesday, October 15, 2024
- IPO Close Date: Thursday, October 17, 2024
- Basis of Allotment: Friday, October 18, 2024
- Initiation of Refunds: Monday, October 21, 2024
- Credit of Shares to Demat: Monday, October 21, 2024
- Listing Date: Tuesday, October 22, 2024
- Cut-off Time for UPI Mandate Confirmation: 5 PM on October 17, 2024
Pricing and Lot Size
* Face Value: Rs10 per share
* Price Band: Rs1,865 to Rs1,960 per share
* Lot Size: 7 shares
* Total Issue Size: 142,194,700 shares, aggregating up to Rs27,870.16 crores
* Employee Discount: Rs186 per share
* Listing At: BSE and NSE
* Pre-Issue Shareholding: 812,541,100 shares
* Post-Issue Shareholding: 812,541,100 shares.
* Listing Date: Tuesday, October 22, 2024
One essential step is the demat account opening, which allows you to hold your shares electronically. This is crucial for any investor looking to participate in the stock market
Financial Health and Performance
Assets
Hyundai Motor India's total assets have seen fluctuations over the years. As of June 30, 2024, the company reported assets worth Rs25,370.24 crores, a slight decrease from Rs26,349.25 crores as of March 31, 2024. The peak asset value was recorded at Rs34,573.34 crores on March 31, 2023.
Revenue Growth
The revenue of Hyundai has demonstrated significant growth over the years. For the quarter ending June 30, 2024, revenue reached Rs17,567.98 crores. The total revenue for the financial year ending March 31, 2024, was Rs71,302.33 crores, up from Rs61,436.64 crores in FY 2023 and Rs47,966.05 crores in FY 2022.
Profit After Tax (PAT)
The profit after tax has also shown a consistent upward trend. As of June 30, 2024, PAT was Rs1,489.65 crores. For FY 2024, PAT increased to Rs6,060.04 crores, significantly rising from Rs4,709.25 crores in FY 2023 and Rs2,901.59 crores in FY 2022.
Net Worth
The company's net worth was recorded at Rs12,148.71 crores as of June 30, 2024, a notable increase from Rs10,665.66 crores as of March 31, 2024. The highest net worth recorded was Rs20,054.82 crores on March 31, 2023.
Reserves and Surplus
Hyundai Motor India's reserves and surplus reached Rs11,336.17 crores as of June 30, 2024, up from Rs9,853.12 crores in March 2024. The highest value of reserves was noted in March 2023 at Rs19,242.28 crores.
Total Borrowing
As of June 30, 2024, the total borrowing stood at Rs758.14 crores, a slight decrease from Rs767.92 crores in March 2024, down from Rs1,158.60 crores in March 2023.
Opportunities for Growth
Conversely, Hyundai presents several opportunities that could lead to growth:
- Strong brand recognition: Hyundai is a well-established name in the automobile industry, bolstered by a loyal customer base.
- Robust distribution network: The extensive network allows for efficient product reach and customer service.
- Expansion into the growing EV market: With increasing demand for electric vehicles, Hyundai's commitment to this segment provides significant growth potential.
As a noteworthy IPO in the Indian market, Hyundai Motor India presents an intriguing investment opportunity amid its robust financial health and market position. Interested investors should prepare for the IPO, which opens on October 15, 2024, and stay informed about the relevant dates and processes involved.
Investors aiming to maximise gains might consider margin trading, allowing them to borrow funds to buy more shares. This strategy can boost returns but also increases risks, making thorough research essential, especially during Hyundai's IPO.
How to apply for IPO using HDFC Sky's One-Click feature
HDFC Sky's One-Click feature simplifies the IPO application process, delivering a streamlined user experience. Follow these steps to apply for the Hyundai IPO:
1. Login to HDFC Sky: Enter your credentials to access your account.
2. Navigate to IPO section: Select "Indian Stocks" under your profile, then click "IPO."
3. Select the Hyundai IPO: Choose Hyundai from the IPO list and click "Apply Now."
4. Enter your bid: Provide your bid details and adjust your application preferences.
5. Proceed to payment: Pay using UPI.
6. Approve mandate: Use your UPI app to approve the payment mandate.
7. Place your order: Finalise your application by placing your order.
Features of HDFC Sky's One-Click IPO:
- Simple process: Apply in just one click with minimal paperwork.
- Real-time notifications: Stay informed about your application, allotment, and refund status instantly.
- Unified platform: Manage all IPO investments in one place.
- Convenient access: Apply on the go via the app or portal.
Hyundai's IPO offers growth potential with stability. With HDFC Sky's One-Click feature, this investment becomes even more accessible. Don't miss this chance to join a major IPO with ease.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same)