Today i.e. 16th October is the second day of Hyundai India's Initial Public Offer i.e. IPO. This IPO has been subscribed only 18% so far. Investors will be able to bid for this issue till October 17. The company's shares will be listed in the market on October 22. The company has fixed its price band at Rs 1,865-1,960. For this a bid of at least Rs 13,720 will have to be made.
The company wants to raise Rs 27,870 crore through this IPO. This issue of Hyundai Motor India can become India's biggest IPO till date. Till now, this achievement is in the name of Life Insurance Corporation of India (LIC), which had brought an IPO worth Rs 21,000 crore in 2022.
Under this IPO, new shares will not be issued, rather the promoters of the company will sell 14.22 crore existing shares through Offer for Sale (OFS). According to the company, 14.22 crore equity shares with face value of Rs 10 each will be listed on Indian stock exchanges.
Minimum investment will be Rs 13,720
You will be able to invest in the IPO of Hyundai Motor in the price band of ₹ 1865-₹ 1960 and in lots of 7 shares. Accordingly, if you place a bid on the upper band, you will have to invest a minimum of Rs 13,720. Hyundai employees will get a discount of Rs 186 on each share.
50% of the issue is reserved for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII) and 35% for retail investors. The allotment of shares under the IPO will be final on October 18. Then there will be entry on BSE and NSE on 22nd October.
Hyundai Motor India will be the fourth largest listed auto company
Hyundai Motor will be the fourth largest company to be listed in the India stock market. This will be the fourth largest automobile company after Maruti-Suzuki, Tata Motors, Mahindra & Mahindra. Hyundai Motor India is the second largest car company in the country after Maruti.
First IPO of an automaker company in India in 20 years
This IPO is the first initial public offering of an automaker company in India in 20 years. Earlier, Maruti Suzuki's IPO came in 2003. Hyundai is the second largest carmaker in the country after Maruti Suzuki India.
Hyundai's 14.6% share in the domestic market Hyundai Motor India is the country's second largest OEM (Original Equipment Maker) and second largest exporter of passenger vehicles. It has 14.6% share in the domestic market. In the month of September, it sold 64,201 vehicles which was 10% less on annual basis. So far this year 2024, the company has sold 5.77 lakh vehicles which is almost flat on an annual basis.
Talking about the financial health of the company, it had a net profit of Rs 29.02 crore in the financial year 2022, which jumped to Rs 47.09 crore in the next financial year 2023 and reached Rs 60.60 crore in the financial year 2024. During this period, the company's revenue increased at a compound growth rate (CAGR) of more than 14% annually to Rs 713.02 crore. Talking about the current financial year 2024-25, it has achieved a net profit of Rs 14.90 crore and revenue of Rs 175.68 crore in the first quarter April-June 2024.
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