Hyundai Motor India Limited is making headlines as it prepares for its initial public offering (IPO). With potential investors keen to understand the dynamics of this upcoming IPO, here we delve into essential details sourced from the draft red herring prospectus (DRHP). This article aims to provide a comprehensive overview of Hyundai Motor’s IPO, including its size, strategic objectives, financials, and more.
1. Hyundai Motor IPO Size
The Hyundai Motor IPO is a significant event in the Indian market, comprising a book-built issue that offers 142,194,700 shares (14.22 crore shares) at a face value of ₹10 each. This entirely constitutes an offer for sale, indicating a major opportunity for investors looking to tap into the automotive sector.
2. Hyundai Motor IPO Dates
As of now, the specific dates for the Hyundai Motor IPO have yet to be announced. Investors will be closely monitoring announcements for the opening and closing dates of the subscription period. The company’s shares are intended to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), thus enhancing market accessibility.
3. Hyundai Motor IPO Price Band
Currently, the price band for the Hyundai Motor IPO has not been disclosed. Investors are advised to watch for updates on this crucial piece of information, as the price band will play a vital role in determining the attractiveness of the IPO to potential investors.
4. Hyundai Motor IPO Registrar and Lead Managers
The IPO is being managed by a host of reputable book-running lead managers, including Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities & Capital Markets Pvt Ltd, J.P. Morgan India Private Limited, and Morgan Stanley India Company Pvt Ltd. The registrar for the IPO is Kfin Technologies Limited, known for its expertise in managing public issues efficiently.
5. Hyundai Motor IPO Key Risks
Investors should be aware of certain risks associated with the Hyundai Motor IPO. A key concern is the potential increase in prices of parts and materials required for production, which could impact the company’s profitability. Furthermore, Hyundai Motor relies on a limited number of suppliers, and any interruptions in the supply chain may adversely affect its operations and financial outcomes.
6. Hyundai Motor IPO Objective
It’s important to note that the proceeds from the offer will be received entirely by the promoter-selling shareholders, as the company itself will not benefit from any of the IPO proceeds after deducting offer-related costs and applicable taxes. This structure reflects a capital market strategy that may align with the interests of existing shareholders.
7. Hyundai Motor Financials
In terms of financial performance, Hyundai Motor reported revenues from operations amounting to ₹32,488.34 crore for the nine months ending December 31, 2023. The net profit stood at ₹4,382.87 crore, indicative of a robust profit margin of 13.5%. These figures demonstrate the company’s strong operational efficiencies and growth potential.
8. Hyundai Motor Peers
Hyundai Motor competes with major players in the automotive sector, such as Maruti Suzuki India, Tata Motors, and Mahindra & Mahindra. An understanding of its competitors can provide valuable insights into market position and competitive advantage as the IPO prepares for launch.
9. About Hyundai Motor
Hyundai Motor India Limited is a prominent entity within the Hyundai Motor Group, which ranks as the third-largest original equipment manufacturer (OEM) globally based on passenger vehicle sales. Established in May 1996, the company has significantly contributed to the automotive landscape in India and aims to leverage advanced technology to produce reliable, innovative, and feature-rich passenger vehicles. In addition to vehicles, Hyundai Motor manufactures critical components such as transmissions and engines, emphasizing its comprehensive acumen in the automotive industry.
10. Hyundai Motor GMP or Grey Market Premium
The grey market premium (GMP) for Hyundai Motor is currently reported at ₹411, suggesting optimistic investor sentiment regarding the anticipated listing price of the shares, despite the official IPO price yet to be announced. This premium indicates market expectations for potential strong demand once the shares are listed.
Disclaimer: The perspectives and insights contained in this article are provided by individual analysts and do not reflect the opinions of any affiliated organizations. Investors are encouraged to seek advice from certified financial experts before making any investment decisions regarding the Hyundai Motor IPO.
