Hyundai Motor India’s highly anticipated Initial Public Offering (IPO) is set to open for subscription on October 15, 2024. As the automotive industry continues to flourish, investors are eager to explore this investment opportunity. With a price band ranging from ₹1,865 to ₹1,960 per share, the Hyundai IPO is expected to garner significant interest.
Here is a detailed exploration of the Hyundai IPO, and HDFC Sky’s ‘One-Click IPO’ that simplifies the way you invest. Investors looking to participate can start with first step, which is open demat account online.
Key Details of the Hyundai IPO
Hyundai Motor India has launched an IPO worth ₹27,856 crore, primarily consisting of an offer for sale (OFS) of 14.21 crore shares by its promoter, Hyundai Motor Company. This IPO does not include a fresh issue component. Here are some essential details:
- IPO Opening Date: October 15, 2024
- IPO Closing Date: October 17, 2024
- Lot Size: Investors can apply for a minimum of one lot consisting of seven shares, costing around ₹13,720. Subsequent lots can be purchased in multiples of seven shares.
- Allocation of Shares: The company has allocated 50% of the net issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail individual investors.
Delivery trading in the context of the Hyundai IPO allows investors to purchase shares and hold them in their demat accounts, providing the potential for long-term capital appreciation as the company continues to grow in the competitive automotive market.
Strengths of Hyundai Motor India
Hyundai Motor India stands out in the Indian automotive market due to several strengths:
- Market Leader in SUVs: Hyundai is the largest original equipment manufacturer (OEM) in the country, especially in the mid-size SUV segment. The popular Creta model enjoys a significant market share of 30% in this segment.
- Diverse Product Portfolio: The company offers a wide range of passenger vehicles, including models like Aura, Verna, Grand i10 NIOS, and IONIQ 5. This variety allows it to cater to different customer preferences effectively.
- Strong Sales and Service Network: As of March 2023, Hyundai had the second-largest sales and service network in India, ensuring excellent customer support and accessibility.
- Digital Innovations: Hyundai has embraced digitization with initiatives like the ‘Click to Buy’ portal and various apps that enhance customer experience.
- Efficient Manufacturing: With a production rate of 30 seconds per passenger vehicle and advanced automation in its Chennai plant, Hyundai ensures timely deliveries.
Risks Associated with the IPO
While Hyundai IPO strengths are notable, potential investors should also consider some risks:
- Dependency on Suppliers: Hyundai relies heavily on a limited number of suppliers, with the top five suppliers accounting for 43% of its total purchase cost in FY23.
- Raw Material Price Fluctuations: The company faces challenges related to rising prices of parts and materials, which could impact profit margins.
- Promoter Dependency: Hyundai’s operations significantly depend on its parent company, Hyundai Motor Company.
- Geopolitical and Economic Factors: The company is exposed to various risks, including geopolitical tensions and fluctuating foreign exchange rates, which can affect its performance.
- Seasonality of Sales: Hyundai’s sales tend to fluctuate across different quarters, affecting its financial stability.
Investors need to weigh these strengths and risks before making a decision. The Intraday app for the Hyundai IPO enables investors to buy and sell shares within the same trading day, allowing for quick profits based on market fluctuations while taking advantage of the company’s dynamic stock performance
Financial Performance
Hyundai Motor India has exhibited impressive financial growth in recent years. In FY24, the company recorded a net profit of ₹6,060 crore, a substantial increase of 28.7% compared to the previous fiscal year. Additionally, Hyundai’s revenue for FY24 reached ₹69,829 crore, reflecting a robust growth of 15.8% from FY23.
In the first quarter of FY25, Hyundai continued its upward trajectory. Revenue reached ₹17,344.2 crore, a year-on-year increase of 4.3%. Moreover, net profit surged by 12.1% year-on-year to ₹1,489.6 crore.
These figures highlight Hyundai’s strong market position and its ability to adapt to evolving consumer trends in the competitive automotive landscape. The company’s commitment to innovation and quality has been instrumental in its success, enabling it to maintain a healthy growth trajectory. As Hyundai Motor India moves forward, it aims to capitalize on this momentum, exploring new opportunities for expansion and enhancing shareholder value.
How to apply for IPO using HDFC Sky’s One-Click feature
HDFC Sky’s One-Click IPO feature simplifies applying for IPOs, ensuring a smooth experience. Here’s how you can apply for the Hyundai IPO:
- Log into HDFC Sky: Access your account using your login credentials.
- Find the IPO section: Select “Indian Stocks” from your profile, then click on “IPO.”
- Select the Hyundai IPO: Locate the Hyundai IPO from the list and click “Apply Now.”
- Bid details: Enter your bid information and customise your application.
- Payment process: Choose UPI for your payment method.
- Approve the mandate: Use your UPI app to authorise the payment.
- Submit your application: Confirm and place your order to finalise your application.
HDFC Sky’s One-Click IPO features include:
- Effortless application: Apply in just one click, minimising documentation and errors.
- Instant notifications: Receive updates on your application status and refunds immediately.
- All-in-one management: Oversee all your IPO investments from a single platform.
- Flexible access: Apply from anywhere using the HDFC Sky app or portal.
The Hyundai IPO offers a compelling investment opportunity with both growth potential and stability. With HDFC Sky’s One-Click IPO feature, the investment process is simpler and more user-friendly.
