Hyundai Motor India Limited (HMIL), a key player in India’s automobile industry, is preparing for its initial public offering (IPO) to secure funding for strategic growth initiatives.
This article delves into the details surrounding the Hyundai IPO and how HDFC Sky’s ‘One-Click IPO’ simplifies the investment process.
Company Overview
Founded in May 1996, Hyundai Motor India is a subsidiary of the Hyundai Motor Group, the world’s third-largest auto original equipment manufacturer (OEM) by passenger vehicle sales. Known for its reliable and innovative vehicles, HMIL offers a diverse lineup that includes sedans, hatchbacks, SUVs, and electric vehicles (EVs), as well as key components like transmissions and engines. This broad product range has strengthened the company’s market position in India.
Core Business and Market Position
Hyundai Motor India is a prominent force in the Indian automobile market, delivering mobility solutions through a vast network of 1,366 sales points and 1,550 service centers nationwide. As of March 31, 2024, HMIL had sold nearly 12 million passenger vehicles, with a lineup that includes popular models such as the Grand i10 NIOS, i20, Verna, Creta, and the all-electric Ioniq 5 SUV.
The company operates a state-of-the-art manufacturing facility near Chennai, supplying vehicles to both domestic and international markets, including Africa, the Middle East, and South Asia. This strong presence solidifies Hyundai Motor India’s position as a key competitor in the industry.
Hyundai Motor India IPO Details
The Hyundai Motor India IPO is a book-built issue valued at ₹27,870.16 crores, consisting entirely of an offer for sale of 14.22 crore shares. The company will not receive any proceeds from the offering, as all funds will go to the Promoter Selling Shareholder. This structure enables existing shareholders to liquidate their holdings and gain liquidity without directly funding the company’s 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 ₹27,870.16 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: ₹10 per share
- Price Band: ₹1,865 to ₹1,960 per share
- Lot Size: 7 shares
- Total Issue Size: 142,194,700 shares, aggregating up to ₹27,870.16 crores
- Employee Discount: ₹186 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 varied over time. As of June 30, 2024, the company reported assets totaling ₹25,370.24 crores, down slightly from ₹26,349.25 crores on March 31, 2024. The highest asset value was recorded on March 31, 2023, at ₹34,573.34 crores.
Revenue Growth
Hyundai’s revenue has shown substantial growth over the years. For the quarter ending June 30, 2024, revenue reached ₹17,567.98 crores. The total revenue for the financial year ending March 31, 2024, amounted to ₹71,302.33 crores, reflecting an increase from ₹61,436.64 crores in FY 2023 and ₹47,966.05 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 ₹1,489.65 crores. For FY 2024, PAT increased to ₹6,060.04 crores, significantly rising from ₹4,709.25 crores in FY 2023 and ₹2,901.59 crores in FY 2022.
Net Worth
The company’s net worth was recorded at ₹12,148.71 crores as of June 30, 2024, a notable increase from ₹10,665.66 crores as of March 31, 2024. The highest net worth recorded was ₹20,054.82 crores on March 31, 2023.
Reserves and Surplus
Hyundai Motor India’s reserves and surplus reached ₹11,336.17 crores as of June 30, 2024, up from ₹9,853.12 crores in March 2024. The highest value of reserves was noted in March 2023 at ₹19,242.28 crores.
Total Borrowing
As of June 30, 2024, the total borrowing stood at ₹758.14 crores, a slight decrease from ₹767.92 crores in March 2024, down from ₹1,158.60 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.
Hyundai Motor India’s upcoming IPO stands out as a significant opportunity in the Indian market, offering potential investors a chance to capitalize on the company’s strong financial health and market position. The IPO opens on October 15, 2024, and investors are encouraged to stay updated on key dates and procedures to participate effectively.
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:
- Login to HDFC Sky: Enter your credentials to access your account.
- Navigate to IPO section: Select “Indian Stocks” under your profile, then click “IPO.”
- Select the Hyundai IPO: Choose Hyundai from the IPO list and click “Apply Now.”
- Enter your bid: Provide your bid details and adjust your application preferences.
- Proceed to payment: Pay using UPI.
- Approve mandate: Use your UPI app to approve the payment mandate.
- 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.