Hyundai Motor India Limited IPO: Issue dates, price and lot size 

Hyundai Motor India Limited is set to make waves in the stock market with its upcoming initial public offering (IPO), poised to become the largest public issue in India's history. As the first automaker to go public in India since Maruti Suzuki's listing in 2003, this IPO represents a significant milestone for the automotive industry. 

With a substantial offer for the sale of shares, the Hyundai Motor IPO provides an exciting opportunity for investors looking to participate in one of the country's leading automotive brands. Scheduled for subscription soon, the IPO aims to attract lots of investors, making it a noteworthy option for those considering IPO investment in the current market landscape.

Hyundai Motor India Limited IPO details

Hyundai Motor India Limited is set to launch a major IPO, aiming to raise ₹27,870.16 crores through an offer for sale of 14.22 crore shares. Open for subscription from October 15 to October 17, 2024, this IPO could become the largest in India, surpassing LIC's ₹21,008-crore IPO in May 2022.

The price band is set at ₹1,865 to ₹1,960 per share, with a minimum lot size of 7 shares, requiring a retail investment of ₹13,720. Additionally, 778,400 shares are reserved for employees at a ₹186 discount. Allotment is expected on October 18, 2024, with a listing on the BSE and NSE scheduled for October 22, 2024.

Hyundai Motor India Limited IPO timeline (Tentative)

Investors should familiarise themselves with the IPO timeline to effectively manage their applications and set realistic expectations. The following table outlines the key dates for the Hyundai Motor India Limited IPO:

About Hyundai Motor India Limited

Hyundai Motor India Limited (HMIL), a subsidiary of Hyundai Motor Company, is a major player in the auto industry. Since its incorporation in 1996, HMIL has sold nearly 12 million vehicles, including sedans, SUVs, and electric vehicles like the Ioniq 5. With a vast network of 1,366 sales points and 1,550 service centres across India, HMIL also exports to regions like Africa and the Middle East. Its Chennai plant supports large-scale production, and the company focuses on local sourcing and sustainable practices, reinforcing its leadership in India’s mobility sector.

Hyundai Motor India Limited IPO: Financials

Over the years, Hyundai Motor India Limited has experienced significant changes in its financial performance, marked by considerable increases in assets and revenue, even as profit after tax (PAT) slightly declined between 2022 and 2024.

Hyundai Motor India Limited IPO: Strengths

1. Second-largest auto OEM in India since Fiscal 2009.
2. Market leader in the mid-size SUV segment, with Creta holding a 30% market share in FY24.
3. Largest exporter of passenger vehicles since Fiscal 2005.
4. A diverse portfolio of 13 passenger vehicle models, including Aura, Creta, Verna, and IONIQ 5.
5. Extensive sales network with 1,366 outlets across 1,031 cities and a strong service network.
6. Advanced R&D capabilities with a dedicated centre in Hyderabad.
7. Flexible, automated manufacturing with advanced robotics, capable of producing vehicles every 30 seconds.
8. Strong digitisation initiatives like 'Click to Buy,' 'H-Smart,' and 'myHyundai' applications.

Hyundai Motor India Limited IPO: Challenges

1. Rising material costs and dependence on limited suppliers affect operations.
2. Significant reliance on Hyundai Motor Company (HMC) for business continuity.
3. Potential supply chain disruptions and financial risks from legal proceedings.
4. Strong competition from Kia, Mahindra, Tata Motors, and others in key market segments.
5. Seasonal business cycles with sales fluctuations and the potential for capacity mismanagement.
6. Exposure to global geopolitical, socio-economic, and foreign exchange risks.

Should you invest in Hyundai Motor Limited?

Hyundai Motor India Limited presents a strong investment case due to its established market position as the second-largest auto OEM in India and its leadership in the mid-size SUV segment. The company boasts a strong product lineup, advanced manufacturing capabilities, and extensive sales and service networks. Its focus on digitisation and R&D further strengthens its competitive edge. However, challenges such as rising material costs, dependency on Hyundai Motor Company, supply chain risks, and stiff competition may impact performance. Prospective investors should weigh these strengths and risks carefully before making a decision.

Key takeaways

As Hyundai Motor India Limited gears up for its historic IPO, investors should carefully consider its strong market position and potential challenges. With a solid track record in the Indian auto industry, leading market share in key segments, and innovative digital initiatives, Hyundai presents a compelling investment opportunity. However, factors like rising costs, reliance on Hyundai Motor Company, and increasing competition must also be weighed. As with all upcoming IPOs, understanding both the opportunities and risks will help investors make informed decisions about this landmark public offering.

FAQs

1. What is the timeline for the Hyundai Motor India Limited IPO?

The Hyundai Motor India Limited IPO will be open for subscription from October 15 to October 17, 2024. Allotment finalisation is set for October 18, 2024, with the listing on the BSE and NSE expected on October 22, 2024.

2. How many shares are being offered in the Hyundai Motor India Limited IPO?

The IPO comprises an offer for the deal of 14.22 crore shares, aiming to raise approximately ₹27,870.16 crores.

3. Where can I find a Hyundai Motor India Limited IPO review?

For a comprehensive Hyundai Motor India Limited IPO review, you can check financial news outlets and analyst reports closer to the listing date. These reviews will give a detailed assessment of the IPO's investment potential based on the company’s performance and market position.