Hyundai Motor India Ltd’s highly anticipated Initial Public Offering (IPO) is set to open for subscription from October 15 to 17, 2024. As the automotive industry continues to thrive, investors are eager to explore this investment opportunity.
Here’s an in-depth review of the Hyundai IPO, paired with HDFC Sky’s innovative ‘One-Click IPO’ feature for smooth investing.
For those interested in share investing apps, this IPO presents a valuable opportunity to engage with one of the top players in the Indian automotive market.
Understanding the Hyundai IPO
Hyundai Motor India Ltd was established on May 6, 1996, as a subsidiary of the Hyundai Motor Group. The company has become a leading force in the Indian automotive market, known for its diverse range of vehicles, including sedans, hatchbacks, SUVs, and EVs.
IPO Details at a Glance
| Event | Date |
| IPO Open Date | October 15, 2024 |
| IPO Close Date | October 17, 2024 |
| Basis of Allotment | October 18, 2024 |
| Initiation of Refunds | October 21, 2024 |
| Credit of Shares to Demat Accounts | October 21, 2024 |
| Listing Date (Tentative) | October 22, 2024 |
| Anchor Bid Date | October 14, 2024 |
This table outlines the key aspects of the Hyundai IPO, including the price range and the investment required. Interested investors should ensure they understand these details before participating.
To invest in the Hyundai IPO, one must have an opening demat account. This account allows investors to hold their shares in electronic form, simplifying the process of buying, selling, and managing shares. The convenience of a demat account enables faster transactions and reduces the risks associated with physical share certificates.
| Category | Details |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹10 per share |
| Price Band | ₹1865 to ₹1960 per share |
| Total Issue Size | 14.22 crore shares (₹27,870.16 crore) |
| Offer for Sale | 14.22 crore shares |
| Employee Reservation | 778,400 shares (with a discount of ₹186) |
| Minimum Investment (Retail) | ₹13,720 (7 shares) |
The Business Model of Hyundai Motor India
Hyundai’s robust business model is built on five main pillars that drive its success in the competitive automotive industry. Each pillar plays a crucial role in establishing Hyundai as a trusted brand and a leader in the Indian market.
Strong Parentage: Being part of the Hyundai Motor Group provides invaluable support across various aspects of the business. This backing enhances research and development, design, product planning, quality control, and marketing. The strength of the parent company allows Hyundai India to leverage global best practices and stay ahead of market trends and innovations, positioning itself as a key player in the automotive sector.
Advanced Technology: Hyundai is committed to integrating cutting-edge technology into its operations. This commitment enhances operational efficiency and improves customer satisfaction. By adopting the latest advancements in automotive technology, Hyundai ensures that its vehicles meet modern standards for safety, performance, and sustainability. This focus on innovation helps the company maintain a competitive edge in a rapidly evolving industry.
Hyundai Brand Trust: The Hyundai brand has established itself as a reliable name in India, as evidenced by numerous awards received in recent years. These accolades reflect Hyundai’s dedication to quality and innovation, reinforcing consumer trust and loyalty. As a result, many customers consider Hyundai as a go-to option for their automotive needs.
Localisation: Hyundai prioritizes sourcing parts and materials from Indian suppliers, contributing to the local economy while ensuring the timely availability of components. This localisation strategy not only supports local businesses but also mitigates supply chain disruptions, allowing Hyundai to respond swiftly to market demands.
Win-Win Approach: Hyundai aims to create long-term relationships with all its stakeholders, enhancing value for customers, suppliers, and investors alike. This commitment to a win-win approach fosters collaboration and loyalty, strengthening the company’s market position and ensuring sustainable growth.
A Track Record of Success
Since its inception, Hyundai Motor India has sold nearly 12 million vehicles in India and exports. As of December 31, 2023, the company operated through 1,366 sales outlets across the country, ensuring a strong market presence.
Hyundai’s significant contribution to the Hyundai Motor Group’s global sales, increasing from 15.48% in 2018 to 18.19% in 2023, showcases its growth trajectory. The company continues to innovate and adapt to emerging market trends, positioning itself as a leader in the automotive sector.
Key Financial Metrics
A review of Hyundai’s financials highlights its steady growth and profitability:
| Fiscal Year | Revenue (in ₹ million) | Net Profit (in ₹ million) |
| FY22 | 479,660.48 | 29,015 |
| FY23 | 614,366.42 | 47,092 |
| FY24 | 713,023.25 | 60,600 |
These numbers reflect the company’s commitment to maintaining strong performance while expanding its market reach.
What is Delivery Trading?
For potential investors interested in participating in the Hyundai IPO, it’s essential to understand what is delivery trading. Delivery trading refers to the practice of buying and holding shares for a longer period, typically with the expectation of capital appreciation. This type of trading contrasts with intraday trading, where investors buy and sell shares within the same trading day.
Delivery trading allows investors to capitalize on the long-term growth potential of companies like Hyundai. Given Hyundai’s established market position and continuous innovations, many investors see the upcoming IPO as a promising investment opportunity.
How to apply for IPO using HDFC Sky’s One-Click feature
HDFC Sky’s One-Click IPO feature makes applying for IPOs easier and more efficient. Here’s a step-by-step guide to applying for the Hyundai IPO:
- Log into HDFC Sky: Start by logging into your account using your credentials.
- Go to the IPO section: Click on “Indian Stocks” in your profile, then select “IPO.”
- Select Hyundai IPO: Find the Hyundai IPO in the list and click “Apply Now.”
- Bid details: Enter your bid and customise your application as necessary.
- Proceed to payment: Choose UPI as your payment method.
- Approve the mandate: Use your UPI app to authorise the payment.
- Confirm your order: Complete the application by placing your order.
Key features of HDFC Sky’s One-Click IPO include:
- Effortless application: Apply with one click, minimising paperwork and potential errors.
- Real-time notifications: Get immediate updates on your application status, allotments, and refunds.
- Centralised management: Manage all your IPO investments from a single platform.
- Accessible anywhere: Apply through the HDFC Sky app or online portal for convenience.
Hyundai’s IPO represents a significant investment opportunity, combining growth potential with stability. With HDFC Sky’s One-Click IPO feature, this process becomes more accessible and efficient. Don’t miss out on this chance to invest in this IPO