Hyundai Motor India IPO: A Complete Guide for Investors3 min read
Hyundai Motor India Limited has announced its much-anticipated Initial Public Offering (IPO), opening a door for investors to get a stake in one of India’s leading automotive manufacturers. If you’re looking to diversify your portfolio, here’s everything you need to know about this IPO, from dates to key financial details.
About Hyundai Motor India Limited
Incorporated in May 1996, Hyundai Motor India Limited is a key player in India’s automotive sector. As a subsidiary of the globally renowned Hyundai Motor Group, the company has established itself as a leader in manufacturing four-wheeler passenger vehicles.
Hyundai’s comprehensive production includes both vehicles and critical components such as transmissions and engines, ensuring quality control across the board. Its vehicle portfolio consists of 13 models, such as the Grand i10 NIOS, i20, i20 N Line, AURA, Exter, Venue, Creta, Alcazar, Tucson, and the Ioniq 5 electric SUV.
Strengths of Hyundai Motor India
- Market Leadership: Hyundai is the second-largest player in the Indian passenger vehicle market, consistently achieving strong sales volumes. (Source: Economic Times)
- Diverse Product Portfolio: Hyundai offers a wide range of vehicles, from entry-level models to premium offerings, catering to various customer segments.
- Strong Network: The company boasts a vast sales and distribution network, with over 500 dealerships and a comprehensive after-sales service infrastructure.
- Technological Innovation: Hyundai is at the forefront of automotive innovation, with a focus on electric vehicles (EVs) and connected car technologies.
Potential Risks for Investors
- Cost Inflation: Rising prices for raw materials like steel and aluminum could impact Hyundai’s profit margins.
- Supplier Dependency: Hyundai relies heavily on Mobis India Limited for spare parts, which could pose a supply chain risk.
- Royalty Agreement: The potential termination of its royalty agreement with Hyundai Motor Corporation could impact long-term revenue streams.
Hyundai Motor India IPO: Key Details
- IPO Dates: October 15 – October 17, 2024
- Price Band: ₹1,865 to ₹1,960 per share
- Minimum Investment: ₹13,055 (7 shares per lot)
- Total Issue Size: Up to ₹27,870 Crore
- Retail Investor Limit: Up to ₹2,00,000
Timeline
- Issue Opens: Tuesday, October 15, 2024
- Issue Closes: Thursday, October 17, 2024
- Shares Credited: Monday, October 21, 2024
- Listing Date: Tuesday, October 22, 2024
Why You Should Consider Investing in Hyundai Motor India IPO
Investing in Hyundai Motor India offers exposure to one of the most well-established automotive brands in India, with a proven track record of consistent growth. Additionally, with the increasing demand for electric vehicles and the company’s focus on innovation, Hyundai is well-positioned to capitalize on future market trends.
How to Apply for the Hyundai Motor India IPO
Retail investors can apply for a minimum of 7 shares (one lot) and invest up to ₹2,00,000. Ensure you have a Demat account, and keep an eye on the opening dates to avoid missing out on this opportunity.
Conclusion
Hyundai Motor India’s IPO offers a compelling opportunity for investors seeking exposure to India’s automotive sector. With its strong market position, diverse product lineup, and robust financial health, this IPO is one to watch closely.
Source: DRHP, RHP
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532, Depository Participant – IN – DP – 416 – 2019, Depository Participant Number: CDSL – 12088800, NSE (90165), BSE (6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For more details, please visit: https://www.paytmmoney.com
