Hyundai IPO: A Game-Changer in India’s Market!

Hyundai IPO: A Game-Changer in India’s Market!

After much excitement, the moment has arrived! Dive into India’s largest upcoming IPO—Hyundai Motor. Discover its benefits, drawbacks, and future prospects to make informed investment decisions.

Company Background

Company Background

Hyundai is a prominent Indian automobile company known for its innovative cars. It manufactures commercial and passenger vehicles and has sold over 12 million vehicles worldwide!

Diverse Product Range

Diverse Product Range

From sedans and hatchbacks to SUVs and electric vehicles, Hyundai offers top models like the i10, i20, and Creta. Their robust dealership network includes 1,366 sales points and 1,500 service centers.

IPO Details

IPO Details

– IPO Date: October 15 - 17, 2024 – Price Band: ₹1865 to ₹1960 per share – Total Issue Size: ₹27,870.16 Crore

Analyzing the Numbers

Despite a volatile asset base, Hyundai's revenue grew from ₹48,000 Cr to ₹71,000 Cr. Margins improved from 6% to 8%, indicating effective cost management and profitability.

Understanding the Structure

Understanding the Structure

The IPO is entirely through Offer for Sale (OFS), meaning promoters sell their shares. Investors should note that proceeds won’t benefit the company directly, impacting investment considerations.

Investment Opportunities

Investment Opportunities

With 35% reserved for retail investors and a minimum application of ₹13,720, this IPO presents a great opportunity for both retail and institutional investors.

Things to Consider

Things to Consider

Apply at the higher price of ₹1960 to increase allotment chances. Remember, each PAN can apply only once. Be mindful of market volatility if you’re a short-term investor.

Future Prospects

Future Prospects

With a growing focus on electric vehicles, Hyundai is strengthening its EV lineup. Government policies promoting EVs may further enhance growth opportunities.

Should You Invest?

Should You Invest?

For long-term investors, Hyundai’s strong fundamentals make this IPO attractive. However, short-term investors should approach with caution due to potential volatility.