Hyundai Motor's Latest IPO: Comprehensive Guide for Investors

Hyundai Motor is set to make a bold move with its upcoming IPO, a highly anticipated event in the automotive and securities markets. This offering marks a significant moment for Hyundai as it seeks to raise substantial capital to drive its growth strategy, particularly in electric vehicles (EVs) and advanced automotive technology. The IPO is not just an opportunity for the company to strengthen its financial base but also a chance for investors to gain exposure to a global auto giant. With strong fundamentals and a focus on future mobility, Hyundai’s IPO promises to be a key event for market participants looking to diversify their portfolios into sustainable and high-tech sectors. Investors should closely analyze Hyundai's positioning in the competitive EV market, alongside broader industry trends, to assess the long-term potential of this investment.

IPO Details:

1] Hyundai Motor India IPO date: The public issue will open on 15th October 2024 and will remain open until 17th October 2024.

2] Hyundai Motor India IPO price: The auto OEM company has a fixed price band for the public issue, at ₹1865 to ₹1960 per equity share.

3] Hyundai Motor India IPO lot size: A bidder can apply for the public issue in lots, and one lot of the public offer comprises 7 company shares.

4] Hyundai Motor India IPO size: The auto OEM company aims to raise ₹27,870.16 crore from this public offer, which is a 100% Offer for Sale (OFS).

5] Hyundai Motor India IPO GMP today: According to stock market observers, shares of the company are available at a premium of ₹74 in the grey market today.

6] Hyundai Motor India IPO allotment date: The most likely date for share allocation is 18th October 2024, i.e., Friday next week.

7] Hyundai Motor India IPO registrar: KFin Technologies has been appointed official registrar of the book build issue.

8] Hyundai Motor India IPO lead managers: Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities & Capital Markets Pvt Ltd, J.P. Morgan India Private Limited, and Morgan Stanley India Company Pvt Ltd have been appointed lead managers of the public offer.

9] Hyundai Motor India IPO listing date: The book build issue is expected to be listed on 22nd October 2024, by the 'T+3' listing rule.

Company Overview:

Hyundai Motor is a globally recognized leader in the automotive industry, with a strong presence across key markets. Known for its relentless innovation, Hyundai has established itself as a pioneer in the electric vehicle (EV) space, positioning itself to capitalize on the growing demand for sustainable mobility solutions. In addition to EVs, the company is at the forefront of developing autonomous driving technologies, which are expected to shape the future of transportation. Hyundai's diversified portfolio, robust R&D capabilities, and strategic focus on future mobility make it a strong contender in the evolving automotive landscape.

Impact of the IPO on Hyundai Motor:

The Hyundai Motor India IPO is structured as an Offer for Sale (OFS), with no fresh issuance of shares. This means that the 14.22 crore shares, amounting to a 17.5% stake in the company, will be sold by Hyundai's South Korean parent company. Consequently, Hyundai Motor India will not receive any funds from the IPO. Instead, the entire proceeds, after deducting expenses, will go directly to the parent company. The primary impact of this structure is that Hyundai Motor India’s operational and financial strategies will remain unaffected, as no fresh capital infusion is involved. This OFS allows the parent company to monetize part of its stake without diluting Hyundai Motor India’s existing equity base.

Step-by-Step Guide to Buying Shares in Hyundai’s IPO:

1. Open a Demat and Trading Account:                                                             If you don’t already have one, open a Demat and trading account with a registered stockbroker (e.g., Zerodha, ICICI Direct). This account will hold your shares and allow you to trade.

2. Link a Bank Account
   Ensure your Demat account is linked with a bank account to facilitate payments for IPO bidding.

3. Log in to Your Broker’s Platform
   Once the IPO opens (15th October 2024), log in to your broker's trading platform (web or app).

4. Select the IPO
   Navigate to the IPO section and choose the Hyundai Motor India IPO from the available list.

5. Submit a Bid
   Enter the number of shares you wish to buy (minimum 7 shares per lot) and choose a price within the ₹1865-₹1960 price band. If unsure, you can select the “cut-off price” option to bid at the final offer price.

6. Apply and Authorize Payment
   After confirming the bid details, authorize the payment through your linked bank account using UPI or ASBA (Application Supported by Blocked Amount) for net banking. The amount will be blocked in your account until the shares are allotted.

7. Wait for Allotment
   The allotment is expected on 18th October 2024. You will receive an email/SMS confirmation if shares are allotted. If not, your blocked amount will be released.

8. Listing and Trading
   Hyundai Motor shares will list on 22nd October 2024. If you were allotted shares, you can trade them once listed or hold them as part of your investment strategy.

Conclusion:

Hyundai Motor India’s IPO presents a significant opportunity for investors seeking exposure to the automotive and EV sectors. With a price band of ₹1865 to ₹1960 per share and solid grey market premium (GMP), the IPO has garnered interest. However, as it is an Offer for Sale, the funds will not flow into the company, limiting immediate operational impact. Investors should consider Hyundai’s strong market position in EVs, but also be mindful of industry risks before making a decision. If you believe in Hyundai’s long-term strategy, this could be a solid addition to your portfolio.

Make sure to assess your risk appetite and consult with your financial advisor to determine whether this IPO aligns with your investment goals.