Technology Nile

Hyundai Motor IPO – Review Detailed Analysis | Invest or Not? | Hyundai Motor India IPO

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:

  1. Company overview
  2. Industry outlook
  3. IPO details , SWOT Analysis
  4. Investment potential
  5. Competitor comparison
  6. 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.

📈 Hyundai SWOT
🚀

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.

Advertisement
IPO DateOctober 15, 2024 to
October 17, 2024
Listing DateOctober 22, 2024
Face Value ₹10 per share
Price band ₹1865 to ₹1960 per share
Lot Size7 shares
Total issue size142,194,700 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 TypeBook Built issue IPO
Listing AtBSE, NSE
Share holding pre issue812,541,100
Share holding post issue812,541,100

Hyundai Motor IPO Reservation

Investor CategoryShares offered Maximum Allottees
Anchor Investor Shares Offered4,24,24,890
(29.84%)
NA
QIB Shares Offered2,82,83,260
(19.89%)
NA
NII (HNI) Shares Offered2,12,12,445
(14.92%)
bNII > ₹10L1,41,41,630
(9.95%)
1,34,682
sNII < ₹10L70,70,815
(0.55%)
67,341
Retail Shares Offered4,94,95,705
(34.81%)
70,70,815
Employee Shares Offered7,78,400
(0.55%)
NA
Total Shares Offered14,21,94,700
(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 DateOctober 14, 2024
Shares offered42,424,890
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 LotsSharesAmount
Retail (Min)17₹13,720
Retail (Max)1498₹192,080
S-HNI (Min)15105₹205,800
S-HNI (Max)72504₹987,840
B-HNI (Min)73511₹1,001,560

Hyundai Motor IPO Timeline

IPO Open DateTuesday, October 15, 2024
IPO Close DateThursday, October 17, 2024
Basis of AllotmentFriday, October 18, 2024
initiation of refundsMonday, October 21, 2024
Credit of Shares to DematMonday, October 21, 2024
Listing DateTuesday, October 22, 2024
Cut-off time for UPI mandate Confirmation5:00 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.

ParticularsPeriod ended
June 30, 2024
Period ended
March 31, 2024
Period ended
March 31, 2023
Period ended
March 31, 2022
Assets25,370.2426,349.2534,573.3428,358.06
Revenue 17,567.9871,302.3361,436.6447,966.05
Profit After Tax 1,489.656,060.044,709.252,901.59
Net Worth 12,148.7110,665.6620,054.8216,856.26
Reserves and surplus 11,336.179,853.1219,242.2816,043.71
Total Borrowing 758.14767.921,158.61,140.03
Amount in ₹ Crore

Hyundai Motor IPO Promoter Holding

Share Holding Pre Issue 100%
Share Holding Post Issue 82.50%

Hyundai Motor IPO Listing Details

Listing DateOctober 22, 2024
BSE Script Code 544274
NSE Symbol HYUNDAI
ISININE0V6F01027
Final issue Price ₹1960 per share

Hyundai Motor Listing Day trading information

Price Details BSENSE
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

KPIValues
ROCE (%) 13.69
RoNW (%) 12.26
P/BV14.93

Pre IPOPost IPO
EPS (₹)74.5873.33
P/E (x)26.2826.73

Hyundai Motor IPO Subscription Status (Bidding Details)

Category Subscription (times)
QIB6.97
NII0.60
bNII (bids above ₹10L)0.58
sNII (bids below ₹10L)0.65
Retail0.50
Employee1.74
Total2.37

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 DateIPO PriceGMPSub2 Sauda rateEstimated Listing PriceLast Updated
22-10-2024
(Listing)
1960.00₹62300/4500₹2022
(3.16%)
22 October, 2024
21-10-20241960.00₹48300/4500₹2008
(2.45%)
21 October, 2024
20-10-20241960.00₹95500/7500₹2055
(4.85%)
20 October, 2024
19-10-20241960.00₹45200/3000₹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
16-10-20241960.00₹17100/1500₹1977
(0.87%)
16 October, 2024
15-10-2024
(Open)
1960.00₹63300/4500₹2023
(3.21%)
15 October, 2024
14-10-20241960.00₹45200/3000₹2005
(2.3%)
14 October, 2024
13-10-20241960.00₹65300/4500₹2025
(3.32%)
13 October, 2024
11-10-20241960.00₹75400/6000₹2035
(3.83%)
11 October, 2024
10-10-20241960.00₹132700/10500₹2092
(6.73%)
10 October, 2024
09-10-20241960.00₹175900/13500₹2135
(8.93%)
09 October, 2024
08-10-20241960.00₹147800/12000₹2107
(7.5%)
08 October, 2024
07-10-2024NA₹270₹270 (%)07 October, 2024
06-10-2024NA₹289₹289 (%)06 October, 2024
05-10-2024NA₹270₹270 (%)05 October, 2024
04-10-2024NA₹365₹365 (%)04 October, 2024
03-10-2024NA₹360₹360 (%)03 October, 2024
02-10-2024NA₹370₹370 (%)02 October, 2024
01-10-2024NA₹363₹363 (%)01 October, 2024
30-09-2024NA₹380₹380 (%)30 September, 2024
29-09-2024NA₹385₹385 (%)29 September, 2024
28-09-2024NA₹500₹500 (%)28 September, 2024
27-09-2024NA₹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.

Hyundai Motor IPO Rating
56 votes

loading widget to trade HYUNDAI

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.

Share this Article
Exit mobile version