Hyundai Motor India IPO: Leading automobile giant Hyundai Motor India Ltd's highly anticipated initial public offering (IPO) will open for subscription in the Indian primary market on Tuesday, October 15, 2024. The auto giant's shares will be available on D-Street on October 22, 2024. The public issue will remain open for bidding to all investor groups until Thursday, October 17, 2024.

The IPO of South Korea's Hyundai Motor Company's Indian subsidiary is expected to be the largest public issue in India, surpassing the IPO value of Life Insurance Corporation (LIC). ₹21,000 crore, which was put up for tender in May 2022. Hyundai Motor India's IPO is also one of Asia's largest IPOs recently.

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The upcoming IPO will be Hyundai's first public listing outside South Korea. It will also be India's first carmaker to go public in over two decades since Maruti Suzuki India's IPO in 2003. Hyundai Motor India is also the second largest automobile manufacturer in India in terms of sales after Maruti Suzuki India.

Hyundai Motor India company details

Hyundai Motor Group, which includes Hyundai and Kia, is the world's third-largest automotive original equipment manufacturer (OEM) by passenger car sales, selling 7.3 million vehicles in 2023. The South Korean company has been operating in India since 1996.

Also read: Hyundai Motor India IPO: Get the latest GMP, analyst opinions and emissions details ahead of the opening on October 15

Hyundai Motor India mainly manufactures and sells four-wheeled passenger vehicles and parts such as transmissions and engines in India and outside India. The vehicle portfolio currently includes 13 passenger car models, including sedans, hatchbacks, SUVs and battery electric vehicles.

The company provides mobility solutions and operates a network of 1,366 sales outlets and 1,550 service points across India. Hyundai Motor has operated in India for over two decades and is one of the few foreign auto giants to make a name for itself here, while U.S. rivals Ford and General Motors have failed to capture the local market.

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As of March 31, 2024, the company has sold nearly 12 million passenger vehicles in India through exports. According to a CRISIL report, the South Korean company's Indian arm was the second-largest automaker in the Indian passenger vehicle market (in terms of domestic) in fiscal 2022, 2023 and 2024 and the three months ended June 30, 2024, and since fiscal 2009 sales quantities).

Hyundai Motor India IPO: 10 things investors need to know before signing up

1. Key Dates for Hyundai Motor India IPO: The Hyundai Motor India IPO opens for subscription on Tuesday, October 15 and closes on October 17, 2024. Allotment to anchor investors for the Hyundai Motor India IPO is scheduled for Monday, October 15. Hyundai Motor India's IPO opens to anchor investors on Monday, October 14.

The basis for allotment of shares in Hyundai Motor India's IPO is expected to be completed on Friday, October 18, and the company will issue refunds on Monday, October 21, while shares will be issued on the same day after the Refund will be credited to the demat account of the allottees . Shares of Hyundai Motor India will debut on the BSE and NSE. The provisional listing date is Tuesday, October 22, 2024.

2. Hyundai Motor India IPO Price Range: The IPO price range of Hyundai Motor India Limited has been set at ₹1,865 tons ₹1,960 per share with a par value of ₹10. The maximum price must be at least 105 percent of the minimum price and a maximum of 120 percent of the minimum price. The minimum price is 186.50 times the par value of the shares and the maximum price is 196.00 times the par value of the shares.

3. Plot Size of Hyundai Motor India IPO: The minimum lot size to apply is seven shares, meaning investors can bid for at least seven shares and multiples thereof. The provisional minimum investment amount for private investors is ₹13,720.

Also read: Hyundai Motor India IPO: Price range set at ₹1,865-1,960 per share; Check GMP, issue details and more

4. Hyundai Motor India IPO Details: Hyundai Motor India plans to raise around $3.3 billion or more ₹27,870.16 crore. Hyundai will not issue any new shares as part of the IPO. Under the offer for sale, the South Korean parent company will sell up to 142,194,700 shares (14.22 crore shares) or 17.5 percent of its stake in the wholly owned unit to private investors and other investors (OFS) route. The IPO does not include any new issue components.

Therefore, the book-built issue is an OFS of 14.22 crore equity shares with a face value of ₹10 each. After the IPO, the South Korean car manufacturer will continue to hold a stake of 82.5 percent. If the stock price is at the high end of the range, the IPO will effectively value the leading automaker at $19 billion ₹15,954 crore in the country's biggest equity offering this year.

5. Reservation for Hyundai Motor India IPO: Half of the net volume of the public issue (the offering minus the employee reservation) is reserved for qualified institutional buyers, of which up to 60 percent can be allocated to anchor investors. In addition, 15 percent of the shares are reserved for non-institutional investors and the remaining 35 percent of the shares are reserved for private investors. The company has reserved up to 7,78,400 shares for its employees.

Also read: Hyundai Motor India plans to go public ₹32,000 crore in the next 10 years; Development of a production center for emerging countries

6. Objectives of Hyundai Motor India IPO: The Promoter Selling Shareholder will receive the entire offering proceeds after deducting offering-related costs and applicable taxes, which the Promoter Selling Shareholder is responsible for paying. The Company will receive no proceeds from the Offering.

7. Chief Executive Officer and Registrar of Hyundai Motor India IPO: The Book-Running Lead Managers (BLRMs) of the IPO are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities & Capital Markets Pvt Ltd, JP Morgan India Private Limited and Morgan Stanley India Company Pvt Ltd, while Kfin Technologies Limited is the central issue registrar.

8. Key Risks of Hyundai Motor India IPO: Hyundai Motors relies on a limited number of suppliers for parts and materials. Increasing prices for parts and materials needed for operations could adversely affect the business and results of operations. Any interruption in the availability of parts and materials could negatively impact operations. The automobile company relies on its sponsor, Hyundai Motor Company, for operations, parts and materials.

9. Competitors listed in Hyundai Motor India IPO: According to RHP, the company's listed competitors are Maruti Suzuki India (with a P/E ratio of 17.93 as of October 4, 2024), Tata Motors Ltd (with a P/E ratio of 11.36) and Mahindra & Mahindra (M&M) (with a P/E ratio of 29.96).

Also read: Hyundai Motor India IPO: GMP, Price, Valuation, Other Details. To apply or not as the upcoming IPO begins next week?

10. Hyundai Motor India IPO Latest GMP: Hyundai Motor India IPO GMP is at +60 today. This suggests that Hyundai Motor India share price was trading at a premium of ₹60 on the gray market, according to investorgain.com. Taking into account the upper end of the IPO price range and the current premium in the gray market, the estimated listing price of Hyundai Motor India share is included ₹2,020 each, which is 3.06 percent higher than the IPO price of ₹1,960.

According to the last 15 meetings on gray market activities, the current GMP is at ₹60, indicating a downward trend. The lowest GMP recorded is Re 0, the highest GMP is ₹570, according to analysis by experts at investorgain.com. “Gray market premium” indicates investors’ willingness to pay more than the issue price.