Hyundai Motor India IPO: Key Details, Price Band, GMP Today, and Expert Review

Hyundai Motor India is set to enter the public market with its IPO opening for subscription on October 15, 2024, and closing on October 17, 2024. The price band has been set between ₹1,865 and ₹1,960 per share, with the company aiming to raise nearly ₹27,870 crore. Here’s a detailed breakdown of what potential investors should know.

Hyundai Motor India IPO Details

Hyundai Motor India IPO Important Dates

* - Tentative Dates

Hyundai Motor India IPO Share Allocation

The IPO will have the following share allocation:

Hyundai Motor India IPO Subscription Status

Hyundai Motor India IPO GMP Live**

**The GMP prices displayed here are purely for informational purposes related to the grey market. We do not engage in grey market trading, deal with grey market rates (sub2), nor do we endorse or recommend participating in such activities.

Company Background - Hyundai Motor India 

Hyundai Motor India is a prominent player in the automotive sector, recognized as the second-largest original equipment manufacturer (OEM) and the second-largest exporter of passenger vehicles in India. Headquartered in Gurugram, Haryana, the company operates state-of-the-art manufacturing facilities that are equipped with advanced technology to ensure high-quality production.

Hyundai has established a strong presence in the Indian market, holding a 14.6% share of the domestic passenger vehicle segment. With a diverse portfolio that includes sedans, SUVs, and electric vehicles, the company is committed to innovation and sustainability, aligning its offerings with the evolving preferences of consumers.

The brand has garnered a reputation for reliability, fuel efficiency, and cutting-edge design, catering to the needs of both urban and rural consumers. With a focus on customer satisfaction and technological advancement, Hyundai Motor India continues to play a significant role in shaping the future of the automotive industry in India.

Hyundai Motor India Financial Performance

~All values are in crores

Hyundai Motor India IPO Strengths

• Strong Market Position: As the second-largest OEM and exporter of passenger vehicles in India, Hyundai has a robust market presence, ensuring a stable demand for its vehicles.

• Established Brand Reputation: Hyundai is known for its reliability, quality, and innovative designs, which contribute to strong customer loyalty and a competitive edge in the automotive sector.

• Diverse Product Portfolio: The company offers a wide range of vehicles, including sedans, SUVs, and electric vehicles, catering to various consumer preferences and market trends.

• Growth Potential: With the increasing demand for electric vehicles and sustainable mobility solutions, Hyundai's commitment to innovation positions it well for future growth in these emerging segments.

• Robust Financial Performance: Hyundai Motor India's consistent sales performance and significant market share provide a solid foundation for investor confidence, making its IPO an attractive opportunity.

Hyundai Motor India IPO Weaknesses

• Dependence on Domestic Market: A significant portion of Hyundai's sales comes from the Indian market, making it vulnerable to domestic economic fluctuations and changing consumer preferences.

• Increased Competition: The Indian automotive market is highly competitive, with numerous players vying for market share, which can pressure margins and sales growth for Hyundai.

• Supply Chain Vulnerabilities: Disruptions in the supply chain, such as those caused by global events or shortages of semiconductor chips, can impact production capabilities and affect sales.

• Regulatory Challenges: Hyundai faces various regulatory requirements related to emissions, safety standards, and other compliance issues, which can lead to increased operational costs.

• Market Sensitivity to Economic Conditions: Economic downturns, rising fuel prices, or changes in consumer spending patterns can adversely affect vehicle sales, impacting the company's overall financial performance.

Hyundai Motor India IPO Objectives

• Raise Capital for Expansion: The IPO aims to raise substantial funds to support the company's growth initiatives, including expanding production capacity and enhancing its dealership network across India.

• Strengthen Financial Position: By going public, Hyundai intends to improve its financial stability and reduce debt levels, allowing for better investment in research and development.

• Increase Brand Visibility: The IPO is expected to enhance Hyundai's brand recognition and credibility in the market, attracting more customers and potential business partners.

• Provide Liquidity for Existing Shareholders: The public offering allows existing shareholders, particularly the promoter Hyundai Motor Company, to sell their shares, providing liquidity and an opportunity to realize their investments.

• Facilitate Future Investments: The funds raised through the IPO will enable Hyundai to invest in new technologies, such as electric vehicles and sustainable mobility solutions, aligning with industry trends and consumer demands.

Frequently Asked Questions (FAQs)

1. What is the price band for the Hyundai Motor India IPO?

The price band for the Hyundai Motor India IPO is set between ₹1,865 and ₹1,960 per equity share.

2. When will the IPO open and close for subscription?

The IPO opens for subscription on October 15, 2024, and will close on October 17, 2024.

3. How many shares are being offered in the IPO?

The IPO involves the sale of 14.2 crore equity shares by the promoter, Hyundai Motor Company, through an offer-for-sale mechanism.

4. Is there a fresh issue component in the IPO?

No, the Hyundai Motor India IPO does not include a fresh issue component; it solely comprises an offer-for-sale by the promoter.

5. What percentage of the IPO is reserved for retail investors?

Approximately 35% of the IPO has been reserved for retail investors, while 50% is allocated for qualified institutional buyers (QIB) and 15% for non-institutional investors (NI).

SIMILAR BLOGS| 

Hyundai Motor India IPO Opens on October 15: 10 Key Details to Know Before Subscribing

Hyundai Motor India Pays ₹10,780 Crore Special Dividend in FY24 Ahead of IPO Launch

ALSO READ| 

Garuda Construction and Engineering IPO Sees Strong Response on Day 2

RBI Monetary Policy: UPI 123Pay Limit Raised to ₹10,000, UPI Lite to ₹5,000 for Easier Payments

EXPLORE ARTHA|

SUBSCRIBE ARTHALOGY

READ LATEST NEWS

BLOGS RELATED TO MONEY