Hyundai Motor India IPO Opens October 15: Key Details and Risks to Consider

The highly anticipated Hyundai Motor India IPO is set to open for subscription on Tuesday, October 15, 2024, and will close on Thursday, October 17, 2024. The company is expected to make its stock market debut on Tuesday, October 22, 2024. 

This IPO is expected to become India’s largest public offering, surpassing the previous record set by the Life Insurance Corporation (LIC) IPO in May 2022, which raised about ₹21,000 crore. The Hyundai Motor India IPO will be a complete offer-for-sale (OFS) of 142,194,700 equity shares by its promoter, Hyundai Motor, with no fresh issue of shares.

The price band for this much-awaited IPO has been fixed in the range of ₹1,865 to ₹1,960 per share. The minimum lot size for an application is 7 shares and the minimum investment required from the retail investors is ₹13,720.

However, potential investors should be aware of key risks (as per the RHP) before considering an investment in the Hyundai IPO.

• Hyundai Motor India may face potential conflicts with its group companies, Kia Corporation and Kia India, which operate in similar business lines, potentially affecting strategic decisions.
• The company is dependent on selected suppliers for parts and materials, and any disruption in the availability of these could adversely impact their operations.
• An increase in the prices of parts and materials could negatively affect Hyundai Motor India’s financial performance and overall business results.
• The company is in a Royalty Agreement with Hyundai Motor Company and if the agreement is terminated, it could adversely impact Hyundai Motor India’s business operations and profitability.
• Hyundai Motor India’s long-term competitiveness depends on its ability to keep pace with the evolving electric vehicle (EV) market; failure to recognise market trends and meet customer demands for EVs could hinder the company’s operations.
• The company significantly relies on sales of its SUV models; any changes in government regulations, taxation, or emission norms could disrupt the demand and production of these vehicles.

Following a successful IPO, the Hyundai Motor Share Price will be closely watched during its stock market listing, shaping investor sentiment.

While the Hyundai IPO can present a significant investment opportunity, potential investors must carefully evaluate the inherent risks associated with the company’s operations and market dynamics before making their investment decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.