Hyundai Motors India Limited (HMIL) is set to make a significant impact on the Indian financial market with its highly anticipated Initial Public Offering (IPO). Expected to be one of the largest IPOs in Indian history, this offering has attracted the attention of investors and financial experts alike. As the automotive giant prepares to go public, retail and institutional investors are eagerly exploring the potential of this investment.
Here’s a closer look at the Hyundai IPO, with HDFC Sky’s ‘One-Click IPO’ providing a streamlined investment solution.
Whether you’re experienced in the share market or just starting out, commodities trading could be a part of your strategy for investing in Hyundai’s IPO.
Why is Hyundai Motors Going Public?
Hyundai Motors, a global automotive leader, has chosen to list on the Indian stock market to unlock higher valuations and expand its investor base. India’s growing automotive market and the potential to address the ‘Korea discount’ are key factors driving this decision. By going public in India, Hyundai aims to capitalize on the significant market opportunity and attract a wider range of investors.
To participate in the Hyundai Motors IPO, you will first need a Demat account. A Demat account, short for “dematerialised account,” allows investors to hold and trade shares in an electronic format, ensuring a seamless experience. Today, demat account opening online is a straightforward process
Key Details of the Hyundai Motors IPO
Here is an overview of the important aspects of the Hyundai Motors IPO:
| Details | Information |
| IPO Date | 15th Oct 2024 to 17th Oct 2024 |
| Face Value | ₹10/- per share |
| Price Band | ₹1865/- to ₹1960/- per share |
| Lot Size | 7 Shares |
| Total Issue | 14,21,94,700 shares (₹26,505 Cr to ₹27,856 Cr) |
| Fresh Issue | Nil |
| Offer for Sale | 14,21,94,700 shares (₹26,505 Cr to ₹27,856 Cr) |
| Listing At | BSE, NSE |
| Allotment Date | On or about 18th Oct 2024 |
| Refund Initiation | On or about 21st Oct 2024 |
| Listing Date | On or about 22nd Oct 2024 |
Once your Demat account is ready, the next step is to apply for the Hyundai Motors IPO. The most convenient way to do this is through a share market trading app. The user-friendly interface of these apps makes it easy for beginners to navigate the IPO process, from applying to tracking the allotment status.
IPO Reservation
In the Hyundai Motor IPO, the allocation of shares is divided among different investor categories based on regulatory requirements. Each category is allocated a certain percentage of the net issue, ensuring a fair distribution among various types of investors. The following are the reserved shares for each category:
- Qualified Institutional Buyers (QIB): Not more than 50.00% of the net issue is reserved for QIBs. This category includes entities like mutual funds, insurance companies, and foreign institutional investors.
- Retail Individual Investors (RII): Not less than 35.00% of the net issue is reserved for retail investors. This category includes individual investors looking to invest small amounts in the IPO.
- Non-Institutional Investors (NII) or High Net-Worth Individuals (HNI): Not less than 15.00% of the net issue is reserved for NIIs or HNIs, who typically invest larger amounts in IPOs.
Market Position and Financial Health
As India’s second-largest passenger vehicle manufacturer, Hyundai Motors India holds a market share of 14.9% as of FY24. The company’s portfolio, especially in the SUV segment, has been a key driver of its growth. Popular models like the Creta and Venue have resonated with Indian consumers, contributing significantly to Hyundai’s market position.
In FY23, Hyundai Motors India reported revenue of ₹63,394 crores, with profits soaring to ₹4,709 crores from ₹2,862 crores in FY22. The company’s investments in the Indian market, such as its ₹7,000 crore commitment to modernizing its Talegaon plant, will further expand production capacity to meet increasing demand.
Hyundai Motors’ Competitive Landscape
Hyundai’s public offering is set to impact the broader Indian automotive sector, especially its main rivals, Maruti Suzuki and Tata Motors. The following are some key points about the competitive landscape:
Impact on Tata Motors
- Tata Motors has gained popularity with its models like Nexon and Harrier, but Hyundai’s IPO could challenge its position.
- With a stronger capital base after the IPO, Hyundai may invest more in electric vehicles (EVs), competing with Tata, a pioneer in India’s EV space.
Impact on Maruti Suzuki
- Maruti Suzuki’s vast network and strong customer loyalty help it maintain leadership in the Indian automotive market.
- However, Hyundai’s growing SUV portfolio might push Maruti Suzuki to enhance its offerings in this segment.
As Hyundai Motors continues to expand its footprint in India, both Tata Motors and Maruti Suzuki will face increased competition, prompting them to innovate and strengthen their market positions.
Investment Strategies for Hyundai IPO
While investing directly in Hyundai Motors’ IPO may seem attractive, investors can also explore indirect investment routes. One such method is investing in mutual funds SIP app (Systematic Investment Plan).
Mutual funds provide exposure to a diversified portfolio, which might include shares of Hyundai Motors post-IPO. SIPs, in particular, allow investors to invest small amounts periodically, which can help spread risks and ensure consistent market participation.
Investing in mutual funds that focus on large-cap companies or automotive sector stocks can be a great way to gain exposure to Hyundai while minimising the risk of direct stock market investment.
How to apply for IPO using HDFC Sky’s One-Click feature
The One-Click IPO feature on HDFC Sky revolutionises the IPO application process, making it simple and efficient. Here’s how you can apply for the Hyundai IPO:
- Login to HDFC Sky: Start by logging into your account with your credentials.
- Navigate to the IPO section: Go to “Indian Stocks” in your profile, then select “IPO.”
- Select the Hyundai IPO: Find Hyundai in the IPO list and click “Apply Now.”
- Enter your bid: Provide your bid details and adjust your application as necessary.
- Payment: Choose UPI as your payment method.
- Approve the mandate: Use your UPI or banking app to authorise the payment.
- Confirm and place your order: Finalise your application by confirming and placing your order.
Key benefits of HDFC Sky’s One-Click IPO include:
- Effortless application: Submit your IPO application with a single click, reducing paperwork and errors.
- Instant notifications: Receive real-time updates on your application status and refunds.
- Centralised management: Manage all your IPO investments seamlessly from one platform.
- Accessible from anywhere: Apply using the HDFC Sky mobile app or online portal for convenience.
The Hyundai IPO is an excellent investment opportunity, offering a blend of growth and stability. HDFC Sky’s One-Click IPO feature simplifies the investment process, making it accessible and efficient. Don’t miss this chance to engage in this major market event.