Hyundai IPO Officially Announced; Goes Live On Oct 15 w/ Price Band Of Rs. 1,865 - 1,960 | V3Cars

09 October 2024
By Mahesh Yadav
0

Hyundai have finally officially announced that their IPO will go live on Tuesday, October 15, 2024 and bidding will remain open till Thursday, October 17, 2024 with 7 shares per lot. The company promoters intend to sell 142,194,700 shares at the above mentioned price. This should help Hyundai grab some cash from the investors and use it towards expanding their R&D, production capabilities and sales/service reach in the country.

Thanks to government support, Maruti Suzuki have remained the number one carmaker in India since pretty much day-1. However, we have had Hyundai securing the 2nd position since God knows when. Recently, Mahindra came within striking distance of Hyundai and threatened to take the coveted 2nd spot in India. Mahindra were just 39 units behind in monthly dispatches as they gained 23.7% YoY. Meanwhile, Hyundai witnessed a 5.8% drop in their monthly sales to dealers.

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What Can The IPO Do For Hyundai And Indian Car Buyers?

The fresh cash infusion through their IPO in India could help with executing their plans more aggressively as they won’t have to minutely evaluate each opportunity. When you throw spaghetti on the wall, something will stick. As long as what sticks, sticks well, it can safely cover the costs of the loss making ventures.

We have seen Tata as well as Mahindra going at it quite well in the recent years as their valuations continue to skyrocket. Both carmakers are trying new things and improving their market share in the process.

Mahindra’s return to EV manufacturing is one area of experiment we have seen in the recent past. However, Tata have gone out all guns blazing as they find and cover up the white spaces other manufactures have left open. For example, Maruti Suzuki have pretty much the entire CNG market share to themselves. But, Tata launched CNG cars with a usable boot space, then we got CNG cars with an AMT automatic and recently, we have a turbo-CNG. All three attempts are first of their kind and Maruti Suzuki left the space wide open for someone to swoop in and grab it — if they can. The Punch is an excellent example of their attempt at gaining market share.

Hyundai aren’t too behind either. They were the first ones, and so far, the only ones to challenge the Punch with a mini SUV — Exter. They are also the only ones who quickly managed to launch CNG cars with a usable boot space. They are pretty quick to bring to market what works but they aren't the first to do everything. With some spare cash on hand, we can expect to see them in a more aggressive avatar compared to the somewhat conservative behaviour we have seen from Hyundai so far.

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