Hyundai Motor India Limited, a prominent player in the Indian automotive sector, is all set to launch its highly anticipated Initial Public Offering (IPO). This IPO, opening on October 15, 2024, offers a unique opportunity for investors to become part of the growth story of one of the leading automotive manufacturers in the country. Hyundai Motor India is a subsidiary of the globally renowned Hyundai Motor Group, which ranks as one of the top automotive manufacturers worldwide.
Hyundai Motor Key IPO Details
- IPO Price Band: The price band for the Hyundai Motor India Limited IPO has been set between ₹1,865 and ₹1,960 per equity share.
- Offer Type: The IPO consists of an Offer for Sale (OFS) of 142,194,700 equity shares, offered by its parent company, Hyundai Motor Company. No fresh equity will be issued by the company itself.
- Listing: The equity shares are set to be listed on both BSE and NSE after the IPO, giving investors access to the trading markets.
Hyundai Motor IPO Schedule
- Anchor Investor Bidding Date: October 14, 2024
- Bid/Offer Opening Date: October 15, 2024
- Bid/Offer Closing Date: October 17, 2024
- Minimum Bid: Investors can place bids for a minimum of 7 equity shares, with bids in multiples of 7 thereafter.
Book Running Lead Managers (BRLMs)
Prominent financial institutions overseeing the IPO process as the lead managers include:
- Kotak Mahindra Capital Company Limited
- Citigroup Global Markets India Private Limited
- HSBC Securities and Capital Markets (India) Private Limited
- J.P. Morgan India Private Limited
- Morgan Stanley India Company Private Limited
Hyundai Motor: Business Overview
Hyundai Motor India Limited (HMIL), established in 1996, has consistently been one of the top automotive manufacturers in the Indian market, offering a diverse range of vehicles across various price segments. With popular models such as the Creta, Venue, and i20, Hyundai has gained a dominant position in the Indian automotive industry. The company’s consistent innovation and focus on customer satisfaction have earned it a strong reputation across the nation.
Hyundai Motor IPO: Offer Structure
The IPO will be allocated to different investor categories as follows:
- Qualified Institutional Buyers (QIBs): Not more than 50% of the net offer will be allocated to QIBs. A portion of this will be reserved for anchor investors.
- Non-Institutional Investors (NIIs): 15% of the net offer will be reserved for NIIs.
- Retail Investors: 35% of the net offer will be allocated to retail investors.
- Employee Reservation: A total of 778,400 equity shares will be reserved for eligible employees, who may receive a discount on the final price.
Hyundai Motor IPO Highlights
Hyundai Motor India is poised to enter the stock market as it expands its presence in India, providing long-term investors with a chance to gain from the company’s robust market position and growth potential. The IPO offers an opportunity to participate in the company’s journey as it continues to innovate in the automobile sector.
The company aims to raise funds for various expansion and business development strategies through this IPO, though the proceeds from the sale will go to its parent company, Hyundai Motor Company, as it is an Offer for Sale.
Risk Factors
While Hyundai Motor India Limited is an established player in the Indian automotive market, potential investors should consider certain risks:
- Market Volatility: Stock market volatility may impact share performance after listing.
- Cyclical Nature of the Automobile Industry: The company’s performance is tied to the cyclical trends of the automotive sector, which is influenced by broader economic conditions and regulatory policies.
- Competition: The Indian automotive market is highly competitive, with numerous domestic and international players vying for market share.
The Hyundai Motor India Limited IPO presents an exciting opportunity for investors to be part of a leading automotive company with strong market dominance. The company’s solid track record in innovation, customer satisfaction, and product diversity, backed by the global expertise of Hyundai Motor Company, makes this IPO a highly anticipated event in the Indian financial markets.
Potential investors are advised to stay updated on key announcements related to the IPO and consider all factors, including the associated risks, before making their investment decisions.
