Hyundai Motor India Limited IPO Review | CA Rachana Ranade

Summary

In this video, the host discusses the highly anticipated IPO of Hyundai Motor India, set to raise 27,000 crore rupees. The video compares past IPOs of major companies and their post-listing performance, highlighting significant declines in share prices. The presenter examines Hyundai's market position, financial growth, risks, and valuations, emphasizing that the entire IPO is an offer-for-sale with no fresh issue. The host also explains potential effects of large IPOs on market sentiment and encourages viewers to learn more about technical analysis for smarter investment decisions.

Takeaways

• 🚗 Hyundai Motor India is set to launch a major IPO, anticipated to raise around ₹27,000 crore.
• 🔍 The correct pronunciation of Hyundai is 'Hyun-day,' as shared by people who visited Korea.
• 💼 Large IPOs like this often attract retail investors due to higher allotment chances.
• 📉 Historical performance of big IPOs like LIC, Paytm, and others often saw declines post-listing.
• 📊 Hyundai Motor India ranks third globally in revenue and second in India in vehicle sales.
• 🚙 The company is India's second-largest exporter of passenger vehicles with a 14.6% market share.
• ⚡ Hyundai's EV market share in India is low, just 1.1%, with Tata Motors leading at over 70%.
• 💰 There are substantial legal challenges with pending litigations worth ₹6,200 crore against Hyundai India.
• 📈 The IPO is an offer-for-sale, meaning proceeds will go to Hyundai Korea, not Hyundai India.
• 📅 Hyundai Motor India's IPO is set for October 15-17, 2024, with a high valuation compared to industry standards.

Q & A

What is the correct pronunciation of 'Hyundai' according to the speaker?

The correct pronunciation of 'Hyundai' according to the speaker is 'Hyundai', as told by his friends who have visited Korea.

What is the expected amount to be raised by Hyundai Motor India's IPO?

The expected amount to be raised by Hyundai Motor India's IPO is around 27,000 crore rupees.

Why are retail individual investors excited about large IPOs like Hyundai Motor India's?

Retail individual investors are excited about large IPOs because the chances of allotment increase with the size of the issue.

What was the immediate previous big IPO that the speaker referred to?

The immediate previous big IPO that the speaker referred to was LIC (Life Insurance Corporation of India).

How did the speaker analyze the performance of top 10 IPOs issue size wise?

The speaker analyzed the performance of top 10 IPOs by checking their performance from the first month's high to the current market price or the lowest point.

What was the performance of LIC post-IPO according to the speaker's analysis?

According to the speaker's analysis, LIC's performance post-IPO was a decrease of 42%.

What is the market share of Hyundai Motor India in the passenger vehicle segment in India?

Hyundai Motor India's market share in the passenger vehicle segment in India is approximately 14.6%.

What is the global ranking of Hyundai Motor Group in terms of sales in the calendar year 2023?

The Hyundai Motor Group stands as the third-largest in terms of sales in the calendar year 2023.

What is the expected growth rate of the passenger vehicle segment in India?

The expected growth rate of the passenger vehicle segment in India is 15.4%.

What is the financial performance of Hyundai Motor India in terms of profit growth?

The profit growth of Hyundai Motor India is at 44% CAGR (Compound Annual Growth Rate).

What is the purpose of the funds raised through Hyundai Motor India's IPO?

The funds raised through Hyundai Motor India's IPO will be used to buy back shares from Hyundai Motor Company, the Korean parent company.