New Delhi, Oct 15 (IANS) — The much-anticipated initial public offering (IPO) of Hyundai Motor India had a lukewarm start on Tuesday, with the issue being subscribed only 0.18 times, or 18%, on its opening day. 📉
💰 IPO Details
Hyundai aims to raise a whopping ₹27,870 crore, which would mark the largest IPO in Indian equity market history since 2022, when the Life Insurance Corporation of India (LIC) raised ₹21,000 crore. The subscription window is open until October 17, with the IPO price band set between ₹1,865 and ₹1,960 per share. One lot consists of seven shares. 🤑📈
🗓️ Key Dates
- Subscription Closes: October 17
- Share Allotment Date: October 18
- Shares Credited to Demat Accounts: October 21
- Expected Debut on Stock Exchanges: October 22
🏭 Company Insights
This IPO represents a full offer for sale (OFS) and is notably the first automaker to list in India in over 20 years. Interestingly, all proceeds will go directly to the promoter. 🚗💨
Hyundai raised about ₹8,315 crore from anchor investors prior to the IPO, allotting 4.24 crore shares at the maximum price of ₹1,960 to 225 anchor investors.
Currently, Hyundai holds a 14.6% market share in the domestic passenger vehicle (PV) market, trailing behind Maruti Suzuki, which dominates with a 41% share. Hyundai, however, leads in the mid-size SUV segment with a significant 38% market share as of June 2024. 🌟
🛑❌🛑 Alert
— Dhananjay Kadam (@dsk4u) October 12, 2024
Please never apply for Hyundai IPO.
Reasons:
🔸 It is 100% OFS. Means offer for sale. Not a single money goes to company. All money from our pocket is going to promoter's pocket. And that too in Korea. So this is big loot of India.
🔸 Exorbitant rise in dividend…
🌍 Export Leader
Hyundai also stands as India’s second-largest exporter of PVs, with 21% of its 7.77 lakh vehicles sold in FY 2023-24 being exported to regions such as Africa, the Middle East, Europe, and Latin America. 🚢
📊 Financial Performance
In the 2023-24 financial year, Hyundai reported revenues of ₹69,829 crore and profits of ₹6,060 crore, yielding a margin of 13.1%. For the first quarter of FY 2024-25, the company saw revenues of ₹17,344 crore and profits of ₹1,489 crore, with a margin of 13.5%. 💹
As investors navigate the fluctuating stock market landscape, the Hyundai IPO serves as a barometer of current sentiments, revealing both potential and challenges in the automotive sector.
Stay tuned for further developments! 🚀📊