The IPO for Hyundai was book-built. From October 15, 2024, to October 17, 2024, the IPO will be accessible. Hyundai Motor Company (HMC) is the sole owner of Hyundai Motor India Limited (HMIL). The business provides mobility solutions. HMIL runs a network of 1550 service locations and 1,366 sales locations throughout India. Sedans, hatchbacks, SUVs, and electric cars (EVs) are among the four-wheeler passenger car styles that the firm produces and markets. HMIL also manufactures engine and gearbox parts.
Exploring the background of the Hyundai IPO
The Grand i10 NIOS, i20, i20 N Line, AURA, Exter, Venue, Venue N Line, Verna, Creta, Crata N Line, Alcazar, Tucson, and the all-electric SUV Ioniq 5 are among the 13 vehicles in the company’s line-up. HMIL has optimized its car manufacturing facility near Chennai, which will produce the full range of vehicle types in the country. In addition, HMIL is part of HMC’s world export center, with products exported to Africa, the Middle East, Sri Lanka, Bhutan, Nepal and Bangladesh. HMIL was one of the three largest contributors to HMC’s global volume sales in 2023. In addition, from the levels of 15.48% in CY2018 to 18.19% in CY2023, these volumes increased.
Hyundai IPO is actually the book-built issue of entire offer for sale of 14.22 crore shares valued at ₹27,870.16 crores. Subscriptions for the Hyundai IPO will be accepted from October 15, 2024, to October 17, 2024. The Hyundai IPO pricing range is established at ₹1,865 to ₹1,960 per share.
Subscriptions for Hyundai Motor’s IPO are now closed; view the share price.
Minimum investment for retail investor is seven shares, ₹13,720. Minimum investment for sNII, or small non-institutional investor, is 15 lots, or 105 shares. This equals ₹2,05,800. For bNII, or large non-institutional investor, the minimum investment is 73 lots or 511 shares. This comes out to be ₹10,01,560.
A reservation system based on investor categories is also in place for the Hyundai Motor India Limited IPO. Retail investors receive at least 35% of the net issuance, while Qualified Institutional Buyers (QIB) receive no more than 50%. Furthermore, at least 15% of the net issuance is set aside for Non-Institutional Investors (NII), commonly referred to as High Net-Worth Individuals (HNI).
There will be reservation in this IPO also for employees for as many as 7,78,400 equity shares that would be available at discount rate of ₹186 per share. The equity shares are expected to reach its allotment on October 18, 2024. Those would be provisionally enlisted at BSE and NSE on October 22, 2024.
India’s GDP growth rate will be 7.0% on an average for Fiscal Years 2025-2029, which is higher than the global growth rate. Hyundai Motor India Limited gains from this because it builds a good business environment conducive to growth.
Strong home demand brought about by increased urbanization and growing disposable incomes will drive car sales, and the international automobile company will have ample opportunities to increase market shares.
By date 14th October, 2024, it is an anchor investment bid Hyundai Motor has raised ₹ 8,315.28 cr. from anchor investors Fifty per cent of the stocks to be locked-in till 17th November, 2024 The remaining percentage share locking until 16th January, 2025.
Total IPO subscribed 2.37 times by the closing of auction on October 17, 2024. For the retail sector, there were 0.50 subscriptions; for QIBs, there were 6.97 subscriptions, and NII category witnessed 0.60 subscriptions. The HMIL shares opened up for public trading on BSE and NSE from October 22, 2024. The HMIL IPO has been fully subscribed as it closed on October 18, 2024; and in the upper bracket of ₹1,865–₹1,960 the HMIL price for an IPO has been settled at ₹1,960.
The HMIL IPO was a ₹27,870.16 crore book-built issuance. In the HMIL IPO, 141,416,300 equity shares were made available to the public. The Hyundai IPO pricing range is established at ₹1,865 to ₹1,960 per share. Buying seven shares, or ₹13,720, is the minimum investment required of retail investors. Despite the challenges, the ₹27,870-crore IPO-the biggest in Indian IPO history-sailed through on the last day with the assistance of eligible institutional purchasers. At the upper end of the pricing range of ₹1,1865-1,960, the company has set the IPO price at ₹1,960.
While the reservation for employees was subscribed to 1.74 times, the quota for qualified institutional bidders (QIBs) was booked 6.97 times. During the bidding procedure, only 60% and 50% of the portion designated for retail and non-institutional investors, respectively, were bid on.
The registrar’s website offers the allotment status online. By entering their PAN or IPO allocation number, investors can verify their allocation status. A basis of allotment document is also published by the IPO registrar.
The price set by the stock exchange during the pre-open trading period of an initial public offering (IPO) on the day of the listing, which takes place between 9:00 and 10:00 am, is known as the IPO listing price. Assume, as an example, a company issues 10,000 shares in an IPO at a price of Rs 50.
Overall Market Perception
By Q4FY25, the company will unveil four new EV models of which the Creta EV will be one. It is well priced compared to its peers. For Hyundai Motors India, we have a ‘Subscribe’ rating, the statement read. The profit margins of Hyundai have improved dramatically from 4.54% in FY21 to 7.67% in FY23 while the sales of the company has grown in double digits. Strong success is also shown by the return on capital employed (ROCE) that for FY23 touched 28.75%. The market has responded fairly well to it.
