Hyundai Motor, South Korea’s automotive leader is entering the Indian stock market with its highly anticipated IPO. Opening on October 15, 2024 and closing on October 17, 2024, the IPO aims to raise ₹27,870.16 crore.
In this Hyundai IPO detailed analysis, We’ll explore:
- Company overview
- Industry outlook
- IPO details , SWOT Analysis
- Investment potential
- Competitor comparison
- Hyundai IPO Day-wise GMP
Should you invest? Read on for an informed investment decision
About – Hyundai Motor India Limited
Hyundai Motor IPO – Review
Overview
Hyundai Motor India, a subsidiary of South Korea’s Hyundai Motor Company, entered India in 1996. At that time, Maruti held a 60% market share, which has now reduced to 40%. Hyundai launched its first product, Santro, and established dealership and service networks in Tier 1, 2 and 3 cities.
Today, Hyundai is the second-largest player in India after Maruti, with a market share of 15% Including Kia its market share stands at 21%. Hyundai is also the second-largest exporter from India, with 20% of its sales coming from exports. Since its inception, Hyundai has sold over 12 million vehicles in India and exports. Its parent company is the third-largest automaker globally.
Hyundai product portfolio includes popular models like i10, i20, and Creta. The Creta is a top-selling compact SUV that offers great style, features and price. Hyundai entered the mini SUV market early, which helped it become a leader. Today, 68% of Hyundai sales come from SUVs, helping the company earn more than its competitors, giving it better margins than its competitors.
In terms of IPO analysis, Hyundai’s strengths include its established brand, strong product portfolio, significant market share, export capabilities, parent company’s global presence and high auto industry growth potential in india.
Weaknesses include a high P/E ratio (26), dependence on SUV sales, and competition from Maruti and others.
Industry Outlook
The Indian automotive industry is set for significant growth, driven by a growing middle-class population, increasing disposable income, expanding road infrastructure and government initiatives like FAME-II. By 2025, India is expected to become the third-largest automotive market globally. Furthermore, the Indian automotive market is projected to grow at a compound annual growth rate (CAGR) of roughly 7.40% and 9.7% between 2024 and 2032
SWOT Analysis
Strengths
Established brand: Hyundai is a well-known brand in India, with a presence since 1996.
Diversified product portfolio: Hyundai offers a range of vehicles, including hatchbacks, sedans, SUVs, and electric vehicles.
Strong distribution network: Extensive dealership network across Tier 1, 2, and 3 cities.
Export capabilities: One of India’s largest automotive exporters, with 20% of sales from exports.
Parent company support: Hyundai’s global presence and resources provide a competitive advantage.
Strong market share: Second-largest player in India’s automotive market, with a 15% market share (21% including Kia).
Successful product launches: Successes with models like Santro, i10, i20, and Creta.
Weaknesses
Dependence on few models: 68% of sales from SUVs, vulnerable to market fluctuations.
High debt: Substantial loan amount (₹768 crore in 2024).
High P/E ratio: Higher P/E ratio (26) than the industry average (23) and parent company (5).
Competition: Intense competition from Maruti Suzuki, Tata Motors, and others.
Opportunities
Growing Indian automotive market: Rising demand in SUV and EV segments.
Increasing export potential: Expanding international market presence.
Electric vehicle adoption: Leveraging global EV expertise in India’s EV market.
Strategic partnerships: Collaborations to enhance technology and competitiveness.
Threats
Market competition: Intense rivalry from established and new players.
Regulatory changes: Government policies, taxation, and emission norms impacting operations.
Economic fluctuations: Downturns, inflation, or interest rate changes affecting demand.
Global market uncertainties: Geopolitical tensions, trade wars, and economic trends.
Hyundai Motor IPO Details
Hyundai Motor IPO Details:
Hyundai Motor is all set to launch its Initial Public Offering (IPO) from October 15, 2024, to October 17, 2024. This highly anticipated IPO aims to raise a whopping ₹27,870.16 crore by issuing 142,194,700 shares.
Each share has a face value of ₹10 and will be priced between ₹1865 and ₹1960. If you’re interested in investing, note that you’ll need to bid for shares in lots of 7.
The IPO will be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on October 22, 2024.
The IPO is an offer for sale of 142,194,700 shares, aggregating up to ₹27,870.16 crore. Eligible employees will receive a discount of ₹186 per share. Interestingly, the total shareholding remains unchanged pre and post-IPO, standing at 812,541,100 shares. This book-built issue allows investors to bid for shares within the specified price band.
| IPO Date | October 15, 2024 to October 17, 2024 |
| Listing Date | October 22, 2024 |
| Face Value | ₹10 per share |
| Price band | ₹1865 to ₹1960 per share |
| Lot Size | 7 shares |
| Total issue size | 142,194,700 shares (aggregating up to ₹27,870.16 Cr) |
| Offer for sale | 142,194,700 shares of ₹10 (aggregating up to ₹27,870.16 Cr) |
| Employee Discount | ₹186 per share |
| Issue Type | Book Built issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 812,541,100 |
| Share holding post issue | 812,541,100 |
Hyundai Motor IPO Reservation
| Investor Category | Shares offered | Maximum Allottees |
| Anchor Investor Shares Offered | 4,24,24,890 (29.84%) | NA |
| QIB Shares Offered | 2,82,83,260 (19.89%) | NA |
| NII (HNI) Shares Offered | 2,12,12,445 (14.92%) | |
| bNII > ₹10L | 1,41,41,630 (9.95%) | 1,34,682 |
| sNII < ₹10L | 70,70,815 (0.55%) | 67,341 |
| Retail Shares Offered | 4,94,95,705 (34.81%) | 70,70,815 |
| Employee Shares Offered | 7,78,400 (0.55%) | NA |
| Total Shares Offered | 14,21,94,700 (100%) |
Hyundai Motor Anchor investors Details
Hyundai Motor’s anchor investors submitted bids on October 14, 2024, for the company’s initial public offering (IPO). The anchor portion consisted of 42,424,890 shares, valued at ₹8,315.28 crore.The anchor investors’ lock-in period is staggered, with 50% of the shares unlocking on November 17, 2024 (30 days after the bid date), and the remaining 50% unlocking on January 16, 2025 (90 days after the bid date). This lock-in period ensures that anchor investors hold their shares for a specified time, providing stability to the market.
| Bid Date | October 14, 2024 |
| Shares offered | 42,424,890 |
| Anchor Portion Size (In Cr.) | 8,315.28 |
| Anchor lock-in period end date for 50% shares (30 Days) | November 17, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | January 16, 2025 |
Hyundai Motor IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 7 | ₹13,720 |
| Retail (Max) | 14 | 98 | ₹192,080 |
| S-HNI (Min) | 15 | 105 | ₹205,800 |
| S-HNI (Max) | 72 | 504 | ₹987,840 |
| B-HNI (Min) | 73 | 511 | ₹1,001,560 |
Hyundai Motor IPO Timeline
| IPO Open Date | Tuesday, October 15, 2024 |
| IPO Close Date | Thursday, October 17, 2024 |
| Basis of Allotment | Friday, October 18, 2024 |
| initiation of refunds | Monday, October 21, 2024 |
| Credit of Shares to Demat | Monday, October 21, 2024 |
| Listing Date | Tuesday, October 22, 2024 |
| Cut-off time for UPI mandate Confirmation | 5:00 PM on Thursday, October 17, 2024 |
Hyundai Motor Financials
Hyundai financials demonstrate steady growth. Assets increased from ₹26,350 crore in 2022 to ₹34,500 crore in 2023, but slightly decreased to ₹28,350 crore in 2024. Revenue rose from ₹48,000 crore in 2022 to ₹61,000 crore in 2023 and ₹70,000 crore in 2024. Profit jumped from ₹2,900 crore in 2022 to ₹4,700 crore in 2023 and ₹6,000 crore in 2024.
Hyundai reduced its debt from ₹1,140 crore in 2022 to ₹768 crore in 2024. However, its P/E ratio stands at 26, higher than the auto industry’s average of 2323.
| Particulars | Period ended June 30, 2024 | Period ended March 31, 2024 | Period ended March 31, 2023 | Period ended March 31, 2022 |
| Assets | 25,370.24 | 26,349.25 | 34,573.34 | 28,358.06 |
| Revenue | 17,567.98 | 71,302.33 | 61,436.64 | 47,966.05 |
| Profit After Tax | 1,489.65 | 6,060.04 | 4,709.25 | 2,901.59 |
| Net Worth | 12,148.71 | 10,665.66 | 20,054.82 | 16,856.26 |
| Reserves and surplus | 11,336.17 | 9,853.12 | 19,242.28 | 16,043.71 |
| Total Borrowing | 758.14 | 767.92 | 1,158.6 | 1,140.03 |
Hyundai Motor IPO Promoter Holding
| Share Holding Pre Issue | 100% |
| Share Holding Post Issue | 82.50% |
Hyundai Motor IPO Listing Details
| Listing Date | October 22, 2024 |
| BSE Script Code | 544274 |
| NSE Symbol | HYUNDAI |
| ISIN | INE0V6F01027 |
| Final issue Price | ₹1960 per share |
Hyundai Motor Listing Day trading information
| Price Details | BSE | NSE |
| Final issue Price | ₹1,960.00 | ₹1,960.00 |
| Open | ₹1,931.00 | ₹1,934.00 |
| Low | ₹1,807.05 | ₹1,807.00 |
| High | ₹1,968.80 | ₹1,970.00 |
| Last Trade | ₹1,820.40 | ₹1,819.60 |
Hyundai Motor KPI (Key Performance indicators)
KPI as of June 30, 2024
| KPI | Values |
| ROCE (%) | 13.69 |
| RoNW (%) | 12.26 |
| P/BV | 14.93 |
| Pre IPO | Post IPO | |
| EPS (₹) | 74.58 | 73.33 |
| P/E (x) | 26.28 | 26.73 |
Hyundai Motor IPO Subscription Status (Bidding Details)
| Category | Subscription (times) |
| QIB | 6.97 |
| NII | 0.60 |
| bNII (bids above ₹10L) | 0.58 |
| sNII (bids below ₹10L) | 0.65 |
| Retail | 0.50 |
| Employee | 1.74 |
| Total | 2.37 |
Hyundai Motor IPO Day-wise Grey Market Premium (GMP)
The Hyundai Motor IPO Grey Market Premium (GMP) fluctuated significantly in the days leading up to its listing on October 22, 2024. Initially, the GMP was as high as ₹570 on September 27, 2024, indicating strong demand. However, it declined steadily, reaching ₹45 on October 19, 2024, and then rose to ₹62 on the listing day.
| GMP Date | IPO Price | GMP | Sub2 Sauda rate | Estimated Listing Price | Last Updated |
| 22-10-2024 (Listing) | 1960.00 | ₹62 | 300/4500 | ₹2022 (3.16%) | 22 October, 2024 |
| 21-10-2024 | 1960.00 | ₹48 | 300/4500 | ₹2008 (2.45%) | 21 October, 2024 |
| 20-10-2024 | 1960.00 | ₹95 | 500/7500 | ₹2055 (4.85%) | 20 October, 2024 |
| 19-10-2024 | 1960.00 | ₹45 | 200/3000 | ₹2005 (2.3%) | 19 October, 2024 |
| 18-10-2024 (Allotment) | 1960.00 | ₹5 | — | ₹1965 (0.26%) | 18 October, 2024 |
| 17-10-2024 (Close) | 1960.00 | ₹-32 | — | ₹1928 (-1.63%) | 17 October, 2024 |
| 16-10-2024 | 1960.00 | ₹17 | 100/1500 | ₹1977 (0.87%) | 16 October, 2024 |
| 15-10-2024 (Open) | 1960.00 | ₹63 | 300/4500 | ₹2023 (3.21%) | 15 October, 2024 |
| 14-10-2024 | 1960.00 | ₹45 | 200/3000 | ₹2005 (2.3%) | 14 October, 2024 |
| 13-10-2024 | 1960.00 | ₹65 | 300/4500 | ₹2025 (3.32%) | 13 October, 2024 |
| 11-10-2024 | 1960.00 | ₹75 | 400/6000 | ₹2035 (3.83%) | 11 October, 2024 |
| 10-10-2024 | 1960.00 | ₹132 | 700/10500 | ₹2092 (6.73%) | 10 October, 2024 |
| 09-10-2024 | 1960.00 | ₹175 | 900/13500 | ₹2135 (8.93%) | 09 October, 2024 |
| 08-10-2024 | 1960.00 | ₹147 | 800/12000 | ₹2107 (7.5%) | 08 October, 2024 |
| 07-10-2024 | NA | ₹270 | — | ₹270 (%) | 07 October, 2024 |
| 06-10-2024 | NA | ₹289 | — | ₹289 (%) | 06 October, 2024 |
| 05-10-2024 | NA | ₹270 | — | ₹270 (%) | 05 October, 2024 |
| 04-10-2024 | NA | ₹365 | — | ₹365 (%) | 04 October, 2024 |
| 03-10-2024 | NA | ₹360 | — | ₹360 (%) | 03 October, 2024 |
| 02-10-2024 | NA | ₹370 | — | ₹370 (%) | 02 October, 2024 |
| 01-10-2024 | NA | ₹363 | — | ₹363 (%) | 01 October, 2024 |
| 30-09-2024 | NA | ₹380 | — | ₹380 (%) | 30 September, 2024 |
| 29-09-2024 | NA | ₹385 | — | ₹385 (%) | 29 September, 2024 |
| 28-09-2024 | NA | ₹500 | — | ₹500 (%) | 28 September, 2024 |
| 27-09-2024 | NA | ₹570 | — | ₹570 (%) | 27 September, 2024 |
| 26-09-2024 | ₹0 | — | ₹ (0%) | 26 September, 2024 |
Hyundai Motor Stock Buy or Not?
Hyundai Motor India’s IPO offers a promising investment opportunity, driven by its established brand, strong product portfolio and significant market share. The company has delivered strong financials with revenue growth and profit increase. However, consider the high P/E ratio (26) and intense competition from Maruti and others.
Long-term investors may find value in Hyundai’s growth potential, expanding Indian auto market and increasing demand for SUVs. Short-term investors should exercise caution due to valuation concerns and market fluctuations. Risk-averse investors may want to avoid investing.
Recommendation
- Invest for the long-term (2-3 years)
- Monitor market trends and adjust your portfolio accordingly
- Consider diversifying your investments to minimize risk
Conclusion
Hyundai Motor India’s strong market presence, diversified product portfolio, and export capabilities make it an attractive investment opportunity. However, investors should consider the high P/E ratio and competition in the auto sector.
Disclaimer
This article is not written by a financial advisor, and it should not be considered as personalized financial advice. It is essential to consult a financial expert before making any investment decisions or Do your own research before investing.
FAQ?
Q: What is the Hyundai IPO price band?
Ans. The Hyundai IPO price band is ₹1865 to ₹1960 per share.
Q: What is the Grey Market Premium (GMP) of Hyundai Motor IPO?
Ans. Hyundai Motor IPO GMP fluctuated from ₹-32 to ₹570, indicating market sentiment and investor interest.
Q: Should I invest?
Ans. Consult a financial advisor to determine suitability based on individual risk tolerance and investment goals.