Are You Ready for India’s Largest IPO – Hyundai? | Weekly Update September 27th
Hello Readers!
Something big is coming to the markets! Hyundai’s IPO! And word on the street is, it just may be India’s biggest IPO yet. So, let’s dive into the details but right after we go through the highlights of the past week.
🧾In this Article
Cover story: Are You Ready for India’s Largest IPO – Hyundai?
📈 Weekly Market Wrap-up
Indian equities witnessed a strong week, with major indices posting significant gains. The Nifty 50 surged by 3%, closing at 763.15. The Nifty Bank index followed suit, rising 1.5% to 796.70. Mid-cap stocks also outperformed, with the Nifty Midcap 100 index gaining 1.9% to 242.25. The broader Nifty 100 index climbed 3.1% to 828.60, while the Nifty Smallcap 100 index registered a more modest increase of 0.5%, closing at 97.15. In line with the broader market rally, the Sensex surged 2.9%, ending the week at 2387.05.
Sector Spotlight
The BSE IT index closing marginally up at 42791.87, gaining 0.13%. In contrast, the BSE fast-moving consumer goods (FMCG) index dipped by 0.22%, settling at 23890.95. Both the BSE capital goods (CG) and BSE consumer durables (CD) indices saw positive movements, rising by 0.45% and 0.15% to 73704.11 and 67944.53, respectively. The BSE healthcare (HC) index outperformed the others, surging by 0.68% to close at 44437.43. Overall, the sector remains resilient, showcasing steady growth amidst fluctuating market conditions.
Nifty 100 Top gainers
- Vedanta Ltd.: 513.00 (↑14.1%)
- Mahindra & Mahindra Ltd.: 3,183.65 (↑13.8%)
- Bharat Petroleum Corporation Ltd.: 367.30 (↑13.2%)
- GAIL (India) Ltd.: 236.98 (↑12.4%)
- Bharat Heavy Electricals Ltd.: 287.55 (↑11.8%)
- Tata Steel Ltd.: 166.55 (↑11.4%)
Nifty 100 Top losers
- Varun Beverages Ltd.: 608.55 (↓6.7%)
- Dabur India Ltd.: 633.00 (↓4.8%)
- Avenue Supermarts Ltd.: 5,102.30 (↓4.5%)
- Godrej Consumer Products Ltd.: 1,388.65 (↑3.9%)
- LTIMindtree Ltd.: 6,136.10 (↓3.8%)
- Bajaj Holdings & Investment Ltd.: 10,543.45 (↓2.1%)
FII and DII Activity:
Foreign Institutional Investors (FIIs) were net sellers for the week, with a total net outflow of -3,932.80 crores. This marks a reversal from the previous week’s net buying activity. Domestic Institutional Investors (DIIs), on the other hand, continued their net buying spree, acquiring a total of 1596.17 crores worth of Indian equities. This positive inflow from DIIs helped offset some of the selling pressure from FIIs.
| Date | FII Net Activity in crores | DII Net Activity in crores |
| 16-Sep-24 | 404.42 | 1,022.64 |
| 17-Sep-24 | -2,784.14 | 3,868.31 |
| 18-Sep-24 | -973.94 | 1778.99 |
| 19-Sep-24 | 629.96 | 2405.12 |
| 20-Sep-24 | -1209.1 | 6886.65 |
| Total | -3,932.80 | 15961.71 |
Global Gossip
Global stock markets experienced a mixed week, with major indices showing both gains and losses. In the United States, the Dow Jones Industrial Average (DJIA) rose by 0.59%, closing at 42,313.00. Similarly, the S&P 500 gained 0.95%, reaching 18,119.59. However, the Nasdaq Composite bucked the trend, declining by 0.62% to 5,738.17.
Across Europe, the FTSE 100 in the UK climbed 1.10%, closing at 8,320.76. The DAX in Germany added 4.03%, reaching 19,473.63, while the CAC 40 in France saw a more modest gain of 3.89%, ending the week at 7,791.79.
In Asia, the Nikkei 225 in Japan surged by 5.58%, closing at 39,829.56. The Hang Seng Index in Hong Kong gained 13.00%, reaching 20,632.30, while the Shanghai Composite saw a significant increase of 12.81%, closing at 3,087.53.
Rupee Report
This week, the Indian Rupee (INR) appreciated against the US Dollar (USD), closing at 83.66, up from last week’s close of 83.54. This marks a week-on-week increase of 0.143%.
Gold Surges
Gold prices remained stable this week, hovering around $2,600 per ounce, reflecting a 3.08% increase compared to the previous week. In contrast, Brent crude oil prices saw a slight dip, decreasing by 0.16 points to $74.72 per barrel.
🍟 Quick Bites
🛡️ India’s defence production reached a record ₹1.27 lakh crore in 2023-24, and it now exports defence products to over 90 countries, according to the Defence Minister.
📈 Digital loans in India increased by 27% to ₹37,676 crore in Q1 2024, with an average loan value of ₹12,997, as reported by FACE.
⚡ The Ministry of Power has finalized a plan to expand transmission lines to 6.48 lakh km by 2032, investing ₹9.15 lakh crore to meet the future demand of 458 GW.
✈️ Shankh Air has received approval to start its operations, pending clearance from the DGCA.
👥 EPFO recorded its highest-ever monthly net additions of 19.94 lakh members in July, with a 2.6% increase in first-time employees and a 59.4% share of the 18-25 age group.
💻 India and the US announced a new semiconductor plant in India for advanced chips, under the India Semiconductor Mission and a partnership with Bharat Semi, 3rdiTech, and the U.S. Space Force.
🧅 The government started selling onions from its buffer stock at ₹35 per kg nationwide after removing the export duty to control rising prices.
🏭 Michelin laid the foundation of a new tyre plant in Tiruvallur, Tamil Nadu, with an investment of ₹563.67 crore.
🔎 Stocks in news
🤖 Airtel has launched India’s first AI tool to notify customers of incoming spam calls and messages, which is free of cost and requires no additional downloads.
💰 Grasim’s subsidiary, Aditya Birla Renewables, has raised ₹2,500 crore through a debt issue on a private placement basis.
💵 Shriram Finance has raised $500 million through a bond issue with a 6.15% interest rate till 2028.
📅 Vedanta has fixed the record date for a fourth interim dividend as 16 October. The company board will meet on 8 October to decide upon the dividend.
🎶 Uno Minda’s subsidiary, Minda Onkyo India, has signed a license deal with Hyundai Mobis (Korea) to manufacture speakers.
🏢 TVS Holdings got CCI approval for acquiring 80.74% shareholding in Home Credit India Finance.
⚡ L&T’s power business has received multiple orders worth ₹10,000 crore to ₹15,000 crore in UAE and Saudi Arabia.
💸 NHPC has paid a total dividend of ₹1,286.33 crore to the central government for the financial year 2023-24 (including interim and final dividends).
📈 Samvardhan Motherson has raised ₹6,438 crore through a QIP (Qualified Institutional Placement).
✈️ SpiceJet has raised ₹3,000 crore through a QIP. The company has also completed a settlement with Engine Lease Finance Corp for less than the disputed amount (which was $16.70 million).
📞 Vodafone-Idea (Vi) has signed a ₹30,000 crore deal with Nokia, Ericsson, and Samsung to supply network equipment over 3 years.
🔧 BHEL got a ₹6,100 crore order from NTPC for an 800 MW thermal power project.
🌊 ONGC signed an agreement with multiple companies to explore and produce natural gas from Azerbaijan’s Caspian Sea. The agreement is valid till 2049.
🏦 Adani Total Gas has received funding of $375 million from international banks. $315 million will be issued in the beginning, with an increase option for future needs.
📊 M&M Financial’s company board has approved raising ₹750 crore through private placement of secured debt issue.
🏥 NBCC’s subsidiary HSCC has received a ₹1,261 crore order to build an AIIMS hospital in Darbangha, Bihar.
💳 Inox Wind has signed an agreement with a group of 10 banks for a ₹2,200 crore credit line. The company has been issued this credit without giving any corporate guarantee.
✅ Glenmark Pharma got no observations (no faults) from a US FDA inspection at its Chhatrapati Sambhaji Nagar (Aurangabad) facility.
🚀 IPO corner
Upcoming SME IPOs:
- HVAX Technologies Limited IPO: September 27th to October 1st, 2024
- Saj Hotels Limited IPO: September 27th to October 1st, 2024
- Subam Papers Limited IPO: September 30th to October 3rd, 2024
- Paramount Dye Tec Limited IPO: September 30th to October 3rd, 2024
- NeoPolitan Pizza and Foods Limited IPO: September 30th to October 4th, 2024
News:
- Swiggy’s early investors, including Accel, Alpha Wave, Elevation Capital, and Prosus, are selling some of their stake under the offer for sale option in the food delivery startup’s upcoming IPO, which involves a fresh issue of equity shares worth ₹3,750 crore and an offer-for-sale of 185,286,265 equity shares by existing shareholders.
- KRN Heat Exchanger IPO attracted a massive 58.17 subscription on day 2, with a GMP more than double the IPO price, as investors bought 63.94 crore equity shares of the company, against the offer size of 1.09 crore shares.
- IPO-bound NTPC Green Energy has inked a JV pact to develop 10 GW of renewable energy parks in Maharashtra or any other state in India.
- India’s largest IPO, Hyundai Motor, has received Sebi green light for its ₹25,000-crore issue, which will consist entirely of an offer-for-sale by Hyundai Motor Co. The IPO is expected to launch by November and could surpass previous records held by LIC and Paytm.
Are You Ready for India’s Largest IPO – Hyundai?
Hyundai, a household name in the Indian automotive industry, is all set to make history with its upcoming Initial Public Offering (IPO). While the exact details of the IPO are yet to be finalized, it is poised to be one of the largest in the country’s history.
Why is Hyundai’s IPO Such a Big Deal?
Several factors contribute to the immense anticipation surrounding Hyundai’s IPO:
- Market Leadership: Hyundai has consistently held the top position in the Indian passenger car market for the past decade. As of 2023, the company has a market share of 20%, making it the most popular choice among Indian car buyers.
- Strong Financial Performance: Hyundai has a proven track record of robust financial performance. The company has consistently reported positive growth in revenue, profit, and market share.
- Diverse Product Portfolio: Hyundai offers a wide range of vehicles catering to different customer segments, including hatchbacks, sedans, SUVs, and electric cars. This diverse product portfolio has enabled the company to capture a significant market share.
- Manufacturing Capabilities: Hyundai has a strong manufacturing base in India, with two state-of-the-art manufacturing plants located in Chennai and Sriperumbudur. These facilities have the capacity to produce 7.5 lakh units annually.
- Research and Development: The company has invested heavily in research and development, focusing on developing innovative technologies and products. This commitment to innovation has helped Hyundai stay ahead of the competition.
What Can We Expect from Hyundai’s IPO?
While the specific details of Hyundai’s IPO are still pending official announcement, we can anticipate a few key elements:
- Significant Fundraising: The IPO is expected to raise a substantial amount of capital, which can be used to fuel the company’s growth and expansion plans.
- Public Offering: A portion of Hyundai’s shares will be offered to the public, allowing investors to purchase shares at a predetermined price.
- Strategic Investments: The IPO proceeds can be utilized for various purposes, such as expanding manufacturing capacity, investing in research and development, reducing debt, or funding future acquisitions.
Should You Invest in Hyundai’s IPO?
The decision of whether to invest in Hyundai’s IPO is a personal one that depends on your individual circumstances and risk appetite. However, given the company’s strong fundamentals and the potential for significant growth, investing in the IPO could be a lucrative opportunity.
Here are some factors to consider before investing:
- Your financial goals: Assess whether investing in Hyundai’s IPO aligns with your overall financial objectives.
- Risk tolerance: Evaluate your ability to withstand potential losses if the stock price declines.
- Research and analysis: Conduct thorough research on the company, its industry, and the IPO market conditions.
- Diversification: Consider diversifying your investment portfolio to manage risk.
- Professional advice: If you’re unsure about investing in IPOs, consult with a financial advisor.
Conclusion
Hyundai’s IPO is undoubtedly a significant event for the Indian stock market. The company’s strong brand, market presence, and growth prospects make it an attractive investment proposition. However, it’s essential to approach the IPO with caution and make informed decisions. By carefully considering the factors discussed in this blog, you can determine whether investing in Hyundai’s IPO is the right choice for you.
Upcoming key financial events for the week:
| Date | Event |
| 27-Sep-24 | Core PCE Price Index m/m (US) |
| 30-Sep-24 | German Prelim CPI m/m (EUR) |
| 01-Oct-24 | ISM Manufacturing PMI (US)
JOLTS Job Openings (US) Nikkei S&P Global Manufacturing PMI (Sep) (IN) |
| 02-Oct-24 | ADP Non-Farm Employment Change (US) |
| 03-Oct-24 | Unemployment Claims (US)
ISM Services PMI (US) |
| 04-Oct-24 | Average Hourly Earnings m/m (US)
Non-Farm Employment Change (US) Unemployment Rate (US) Nikkei Services PMI (Sep) (IN) FX Reserves, USD (IN) |
