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Think Initial Public Offers (IPOs) are a sure-shot, quickfire method to make a quick buck? If so, then investing in some of India's biggest IPOs to date would have created multiple millionaires. However, if the data is to be believed, 18 out of India's top 30 IPOs by way of size have failed to deliver on the returns front. <br /><br />Recent data from Capitalmind PMS suggests that of all the mega IPOs India has seen in the past 2 decades, only 12 IPOs i.e. stocks of 12 companies have delivered more returns that what you would have received, had you bought and held your investments in Nifty500(which invests in biggest 500 companies by market size). <br /><br />Infact, Paytm (54%), <keyword id="20024191" type="General" weightage="20" keywordseo="Reliance-Power" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Power" meta.hostid="261" meta.entityid="Reliance Power">Reliance Power</keyword> (81%), General Insurance Corporation (2%) actually generated negative total returns to date. The only outliers in the list of top 10 IPOs were Zomato (listed in July 2021) and Coal India (listed in April, 2010), which managed to generate excess returns i.e. more than what was generated by Nifty500. <br /><br />While Zomato's total return to date, which is considered a comprehensive gauge of a stock's profitability, stands at 265%, Coal India total returns are a massive 443%. In these cases, had you simply bought and held the Nifty500 index for a similar duration, your returns would've been 73%, and 435% respectively. <br /><br />Also, 5 of the biggest IPOs India has ever seen (Bajaj Housing Finance, Bharti Hexacom, Brainbees, Ola Electric) have come in the last 2 years.<br /><br />In some cases, having stayed put in your index investments would have yielded you far better returns. Consider this, FSN E-Commerce, Nykaa's parent company, listed on the exchanges on November 2021. Its total returns till date have been 2%, while had you invested in Nifty500 index, your returns would've been 53%. Similarly, the total returns to date on Bandhan Bank's stock, which listed in March 2018, was a negative 43%. But, the index has delivered a whopping 163% returns during the same time. <br /> <br /><strong><u>Hits and Misses<br /></u></strong><table class="redcator-table-advance"><tbody><tr><td><strong>Company Name</strong></td><td><strong>Total Returns to Date (In %)</strong></td><td><strong>CNX (Nifty500) Returns (In %)</strong></td></tr><tr><td>Reliance Power (Feb 2008)</td><td>-81</td><td>961</td></tr><tr><td>Zomato (July 2021)</td><td>265</td><td>73</td></tr><tr><td>Gland Pharma (November 2020)</td><td>14</td><td>124</td></tr><tr><td>NHPC (September 2009)</td><td class="se-table-selected-cell">389</td><td>961</td></tr><tr><td>Indian Railways Finance Corporation (January 2021)</td><td>582</td><td>109</td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><em>Source: CapitalMind PMS<br /></em><br /><h2>Surge in IPOs? Not really <br /></h2>It is impossible to overlook the sheer number of public offerings seen in the Indian markets over the past 2 years. Around 600 share sale offers have already hit the market since 2023. Out of these, 335 have come in this year, as of October 2024. While over Rs 50,000 crores have been raised by these share sales so far since 2023, only 22% of these funds raises have come from companies who are hitting the market for the first time i.e. bringing out their IPOs. The rest have come from already listed companies seeking to raise more funds.<br /><br />The biggest IPO that India has seen to date, that of <keyword id="19906087" type="General" weightage="20" keywordseo="Hyundai" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyundai" meta.hostid="261" meta.entityid="Hyundai">Hyundai</keyword> Motor India, closes for subscription today. With an offer size of Rs 27,870.16 crore, it is 35% bigger than the previous biggest IPO in the country(LIC in May 2022). <br /><br />As of 12:30 pm today, Hyundai's offer had been 87% subscribed, with significant interest from QIBs and employees. At 0.43x, participation of retail investors remained largely subdued.  <br /><br />Notably, an IPO is considered cancelled and withdrawn, if it fails to meet the 90% subscription threshold.<br />

Do large IPOs guarantee large returns? Data suggests that 18 of India's biggest 30 IPOs did not generate solid returns

The retention lists of all ten franchises for the <keyword id="6354831" type="General" weightage="20" keywordseo="Indian-Premier-League" source="Orion">Indian Premier League</keyword> (<keyword id="6354312" type="General" weightage="100" keywordseo="IPL" source="Orion">IPL</keyword>) season next year were finally unveiled on Thursday, with several big names like Jos Buttler, Aiden Markram, Glenn Maxwell, Faf Du Plessis, KL Rahul, Rishabh <keyword id="19900230" type="General" weightage="20" keywordseo="pant" source="keywords">Pant</keyword>, <keyword id="19904097" type="General" weightage="20" keywordseo="shreyas-iyer" source="keywords">Shreyas Iyer</keyword> etc being let go by their respective franchises. <br /><br />The surprising retentions and releases by all ten franchises have laid down the foundation for what could be an exciting, fun and record-breaking auction later this year. Let us look at several takeways from the auction: <br /><h2>Several captaincy options available</h2> With the release of IPL winning skipper Shreyas Iyer from Kolkata Knight Riders (<keyword id="19924483" type="General" weightage="20" keywordseo="kkr" source="keywords">KKR</keyword>), Rishabh Pant from Delhi Capitals (DC) and KL Rahul from Lucknow Super Giants, three top-class Indian captaincy options are available.<br /><h2>Auction could be defined by wicketkeepers pulling double/triple duties</h2>The announcement of retention lists have seen many wicketkeeping options being released by their respective franchises, including Pant (from DC), KL (from LSG), Ishan Kishan (from Mumbai Indians) and Jos Buttler (from Rajasthan Royals). With all of them having captaincy experience at various levels, including international <keyword id="1521" type="General" weightage="20" keywordseo="Cricket" source="Orion">cricket</keyword> in case of Pant, KL and Buttler, several teams could go after them. Their experience and strong records as wicketkeepers and top-order batters, particularly opening except for Pant, will help teams find a captain, wicketkeeper and an opener in just one player and save them plenty of money.<br /><h2>No English players retained? Could withdrawing/not playing full season be a cause?</h2> No England players have been retained by franchises this team around. Various stars players like Jos Buttler, Liam Livingstone, Jonny Bairstow, Moeen Ali, Sam Curran, Harry Brook, Phil Salt, Will Jacks etc have been let go. These players missed out some part of their season due to international commitments, while Harry Brook pulled out due to personal reasons. England batter Jason Roy pulled out of IPL ahead of this season due to personal reasons. These all developments damaged the team balance at times, with several teams dependent on their overseas talent. Has the habit of not honouring contracts and missing matches caused this move? The hammer strikes at auction could answer this question.<br /><h2>Caribbean power trusted ahead of mega auction</h2>Four of current top West Indies stars, Nicholas Pooran, Shimron Hetmyer, Andre <keyword id="20287010" type="General" weightage="20" keywordseo="russell" source="keywords">Russell</keyword> and Sunil Narine have been retained by their respective franchises. Pooran has dominated the T20 run charts this year, scoring a record-setting 2,251 runs in 68 matches with a century and 15 fifties at a strike rate of 160.90. Hetmyer is one of the best finishers in T20 circuit and Rajasthan Royals trusts in his abilities. Russell (222 runs in nine matches and 19 wickets) and Narine (488 runs and 17 wickets) have also been reaped rewards for their title winning performances last season and their loyalty to KKR brand. <br /><br />While seven West Indies talents have been released, namely, Shai Hope, Sherfane Rutherford, Kyle Mayers, Shamar Joseph, Romario Shepherd, Alzarri Joseph and Rovman Powell, the four modern-day T20 greats keeping their spots safe with the franchise shows how much trust franchise has in Caribbean power. And who knows, the released names could get brought using right-to-match card or find a new home at a higher price.<br /><h2>Another setback for Ishan Kishan?</h2> Five-time champions Mumbai Indians (MI) placed their trust in Indian core, consisting of skipper Hardik Pandya, former captain Rohit Sharma, pacer Jasprit Bumrah, 360-degree hitter Suryakumar Yadav and young left-hander Tilak Varma. It was expected that Ishan could retain his place, given his youth and experience with the franchise. Aged just 26, he had spent seven seasons with the franchise and did reasonably well. <br /><br />However, after being brought for Rs 15.25 crores ahead of 2022 season, the price tag seemed to have caught up with Kishan. In next 44 matches for the franchise till the 2024-season-end, Kishan scored 1,192 runs in 43 innings at an average of 28.98, with just seven fifties. While these numbers are not bad, it could be debatable that he did not deliver as per expectations, with 19 scores being below 20. In the 2024 season, he could score just 320 runs at an average of just over 22, with just a fifty to his name. <br /><br />After being excluded from the Board of Control for Cricket in India (BCCI) central contract this year after not participating for red-ball cricket, this is another big setback for Kishan, who has not been considered for international cricket despite participating and doing well in red-ball tournaments like Buchi Babu Trophy, Duleep Trophy and Ranji Trophy recently.<br /><h2>DC era 2.0 on cards?</h2> With wicketkeeper-batter and biggest superstar of the franchise, Pant released from the franchise and looking for a new franchise as per several media reports, Delhi Capitals could be moving to their 2.0 era, placing trust in young, under-the radar names like Axar Patel (235 runs with two fifties and 11 wickets in 2024), Tristan Stubbs (378 runs with three fifties and three wickets), Abhishek Porel (327 runs with two fifties) and Kuldeep Yadav (16 wickets at an average of 23.25) after good performances last year. <br /><br />Franchise has also released big time stars like David Warner, Mitchell Marsh, Anrich Nortje, Prithvi Shaw. Could this be the start of a new era for DC? Only time will tell.<br /><h2>Shreyas Iyer joins unfortunate list of captains</h2>The IPL winning captain Shreyas Iyer has been let go after winning the title for his franchise KKR this year, their first in a decade and overall third. While many argue his batting stats of 351 runs in 14 innings with two fifties at a strike rate of 146.86 could be a reason behind his release, the other half of the story is that the in-form KKR top-order did not leave the middle-order with much to do. His recurring fitness issues, which caused him to miss 2023 season, also could be a reason. <br /><br />Irrespective of what the reason could be, one thing is for sure, Iyer is up there with likes of Adam Gilchrist (released by Deccan Chargers in 2011 after title win in 2009, semifinal finish in 2010), David Warner (released by Sunrisers Hyderabad ahead of 2022 season despite 2016 title win and multiple playoff finishes) as one of the most unluckiest captains in IPL.<br /><h2>Strong faith in Indian uncapped/inexperienced stars</h2>The franchises have been extremely bold this time around, opting to release experienced, household Indian/overseas names and placing their trust in several Indian uncapped/inexperienced players. <br /><br />Out of a total of 46 players retained across all franchises, 36 players are Indian. Out of these, 10 players are uncapped Indians stars. These players are Abhishek Porel, Rahul Tewatia, Shahrukh Khan, Ramandeep Singh, Harshit Rana, Mohsin Khan, Ayush Badoni, Shashank Singh, Prabhsimran Singh, Yash Dayal. <br /><br />Also, out of other 24 capped Indians, 13 players have played less than 30 international matches and eight have played 10 or less international games for India. Of these 24 uncapped players, no one has all format experience for India and only two have Test cricket experience, Dhruv Jurel and <keyword id="20022019" type="General" weightage="20" keywordseo="rajat-patidar" source="keywords">Rajat Patidar</keyword>. <br /><br />Notably, it is Jurel, who has just played international matches for India, who has received the biggest pay hike, going from Rs 20 lakh this season to Rs 14 crores next season.<br /><h2>End of 'KGF' era for Royal Challengers Bengaluru?</h2> With stars like Faf and Maxwell released, it could spell the end of 'Kohli, Glenn, Faf' (KGF) era for <keyword id="20282652" type="General" weightage="20" keywordseo="rcb" source="keywords">RCB</keyword>, which lasted from 2022-24. During this phase, they all scored heavily for RCB. Despite a lull in 2022 season, Virat scored 1,721 runs in 45 matches and innings at an average of 44.12, with three centuries and 13 fifties. Skipper Faf also scored 1,636 runs in 45 innings at an average of 38.05, with a strike rate of 146.99 and 15 fifties to his name. Maxwell sits at the third spot with 1,266 runs at an average of 28.77 and a strike rate of over 159, with 12 half-centuries in 50 innings. <br /><br />The only player that came closer to the trio was Indian wicketkeeper-batter Dinesh Karthik, who made 796 runs in 44 matches and 42 innings at an average of 29.48, with three fifties. <br /><br />If RCB had Virat-AB de Villiers-Chris Gayle in 2010s, KGF dominated the RCB batting numbers in 2020s. When RCB starts rebuilding their side from scratch in the auction, they would have a huge task in hand of finding one or two highly popular, capable and consistent foreign stars to help Virat unleash the carnage in a "Play Bold" avatar. <br /><br />Also, with the Rajat Patidar being retained for 11 crores, RCB might have made it clear that he could be the next big Indian batter the franchise invests in. His exceptional spin abilities have made a lot of difference for the side. Ever since he was brought by the franchise in 2021 for Rs 20 lakh, Patidar has played 27 matches, scoring 799 runs at an average of 34.73 with a strike rate of 158.84 and having registered a century and seven fifties. <br /><br />A complete list of retained players is as follows:<br /><br /><ul><li>Chennai Super Kings: Ruturaj Gaikwad, Matheesha Pathirana, Shivam Dube, Ravindra Jadeja, MS Dhoni</li><li>Delhi Capitals: Axar Patel, Kuldeep Yadav, Tristan Stubbs, Abhishek Porel</li><li>Gujarat Titans: Rashid Khan, Shubman Gill, Sai Sudharsan, Rahul Tewatia, Shahrukh Khan</li><li>Kolkata Knight Riders: Rinku Singh, Varun Chakaravarthy, Sunil Narine, Andre Russell, Harshit Rana, Ramandeep Singh</li><li>Lucknow Super Giants: Nicholas Pooran, Ravi Bishnoi, Mayank Yadav, Mohsin Khan, Ayush Badoni</li><li>Mumbai Indians: Jasprit Bumrah, Suryakumar Yadav, Hardik Pandya, Rohit Sharma, Tilak Varma</li><li>Punjab Kings: Shashank Singh, Prabhsimran Singh</li><li>Rajasthan Royals: Sanju Samson, Yashaswi Jaiswal, Riyan Parag, Dhruv Jurel, Shimron Hetmyer, Sandeep Sharma</li><li>Royal Challengers Bengaluru: Virat Kohli, Rajat Patidar, Yash Dayal</li><li>Sunrisers Hyderabad: Pat Cummins, Abhishek Sharma, Nitish Kumar Reddy, Heinrich Klaasen, Travis Head.</li></ul>

From spotlight on uncapped stars to big releases, a look at key takeways from latest IPL retention lists

New Delhi: <keyword id="22803368" type="General" weightage="100" keywordseo="Smartworks-Coworking-Spaces" source="keywords">Smartworks Coworking Spaces</keyword> Ltd has filed preliminary papers with capital markets regulator <keyword id="19901201" type="General" weightage="20" keywordseo="Sebi" source="keywords" meta.keywordsubtype="org" meta.entityname="Sebi" meta.hostid="345" meta.entityid="Sebi">Sebi</keyword> to raise funds through an <keyword id="19913114" type="General" weightage="20" keywordseo="initial-public-offering" source="keywords">initial public offering</keyword> (IPO). The proposed initial share sale is a combination of a <keyword id="20953853" type="General" weightage="20" keywordseo="fresh-issue" source="keywords">fresh issue</keyword> of equity shares worth Rs 550 crore and an Offer For Sale (OFS) of 67.59 lakh shares by promoters, according to the <keyword id="20076796" type="General" weightage="20" keywordseo="Draft-Red-Herring-Prospectus" source="keywords">Draft Red Herring Prospectus</keyword> (DRHP). <br /><br /> The city-based company may consider raising Rs 110 crore through a <keyword id="22244028" type="General" weightage="20" keywordseo="pre-IPO-placement" source="keywords">pre-IPO placement</keyword>. If such placement is undertaken, the amount raised will be deducted from the total fresh issue size. <br /><br /> Proceeds from the fresh issue to the tune of Rs 282.30 crore will be used for capital expenditure related to the fit-outs in new centres and security deposits for these new centres, Rs 140 crore will be allocated for payment of loans and the remaining funds will be utilized for general corporate purposes. <br /><br /> Smartworks Coworking Spaces Ltd is a leading platform for office experiences and managed campuses. <br /><br /> It specialises in leasing large, bare-shell properties in prime locations and transforming them into fully serviced, tech-enabled campuses with modern amenities. <br /><br /> These campuses include cafeterias, sports zones, gyms, crA"ches, medical centres, and more, offering a modern and attractive work environment. The company cater to businesses of all sizes, with a focus on mid-to-large companies that need over 300 seats. <br /><br /> The company is concentrated in cities including Bengaluru, Mumbai Metropolitan Region, Hyderabad, Gurugram and Chennai. <br /><br /> India's commercial office space was about 841.2 million square feet as of March 31, 2024, and is expected to grow at an annual rate of 6.71 per cent to 1,079.3 million square feet by the end of 2027, as per the draft papers. <br /><br /> Flexible workspaces have become a key part of modern work culture, supporting different working styles and adding flexibility to the office market. <br /><br /> JM Financial Ltd, BOB Capital Markets Ltd, IIFL Securities Ltd and Kotak Mahindra Capital Company Ltd are responsible for managing the company's IPO process.

Smartworks Coworking Spaces files IPO papers with Sebi; eyes Rs 550 crore via fresh issue

Indian companies across multiple sectors have reported disappointing results in the second quarter of fiscal year 2025, notes a new JM Financials report. Consequently, their poor performance has triggered stock price corrections for affected companies. The brunt of this weaker than expected earnings was largely borne by consumer centric sectors like FMCG (fast moving consumer goods), retail, and auto, which slacked largely due to dampened urban demand.<br /><br />For instance, India's largest automaker, Maruti Suzuki, reported a 5% YoY decline in its total domestic passenger vehicle wholesales, largely on the back of pent-up inventory. Similarly, Honda reported a staggering 23% YoY dip in its total sales during October 2024. <br /><br />A recent report by Bernstein noted that around 48% of the companies listed on the NSE100 index missed their earnings estimate for Q2FY25, the highest since March 2020. Most companies have mentioned deteriorated domestic demand, urban slowing, macroeconomic risk, and margin pressures as the main reasons behind the dip. <br /><br />"The quarter's earnings have made investors nervous," noted the JM Financials report. The challenging environment stems from multiple factors: softening consumer demand, rising input costs, and companies' limited ability to increase prices. Moreover, this is not limited to just one quarter. Companies have been reporting weak, single-digit earnings growth for the last six consecutive quarters. <br /><br />Data from India Data Hub also suggests that corporate profits of listed companies plunged by as much as 3.4% during the quarter ended September 30, 2024. This is in stark contrast to the year-ago period, where they had shot up by over 40% <br /><br />The oil and gas sector had a difficult quarter, with refiners hit by weak margins and city gas distributors struggling with higher input costs. Financial institutions showed mixed results. While government-owned banks reported strong numbers, microfinance institutions and some private lenders faced massive difficulties with their unsecured loans. Most notable amongst this was the case of IndusInd Bank, which saw its net profits dip by 40% amidst burgeoning provisions, which climbed 87% to Rs 1,820 crore in Q2, as against Rs 974 crore reported in the year-ago period. <br /><br /><h2>Markets head southwards</h2>The selling trend by FPIs has dragged down the major Indian indices, the Nifty 50 and Sensex, both of which have dropped by around 8% since the beginning of this selling spree in October. According to National Securities Depository Ltd. (NSDL) data, FPIs offloaded equities worth a significant Rs 19,994 crore in just the first five trading sessions of November last week.<br /><br />The impact is clearly visible on Indian stock markets. Data suggests that while every sector in October closed the month in red, auto, oil and gas, and consumer durables were the most badly hit, each declining by as much as 10% during the month. Another indicator underlining the inherent weakness of the market was that the month saw only 242 stocks hit their 52-week high, significantly below the usual monthly average of 310. <br />

India Inc. stares at an earnings dearth in Q2, FMCG, auto, and consumer durables falter

<ul><li><strong>The <keyword id="20688261" type="General" weightage="100" keywordseo="Motorola-Edge-50-Pro" source="Orion">Motorola Edge 50 Pro</keyword> flagship smartphone is scheduled to launch in India on April 3.</strong></li><li><strong>The device is the successor of the <keyword id="19960470" type="General" weightage="20" keywordseo="motorola" source="keywords">Motorola</keyword> Edge 30 Ultra smartphone that was launched in 2022.</strong></li><li><strong>Here’s everything we know so far about the upcoming flagship smartphone from Motorola.</strong></li></ul>Motorola is all set to launch its latest flagship smartphone, the Motorola Edge 50 Pro in India on April 3. The company has already confirmed the launch date and some of the specifications of the device ahead of its launch in the country.<br /><br />The Motorola Edge 50 Pro has now been spotted on Geekbench, confirming the processor that will power the smartphone. While earlier reports had suggested that the device will be powered by the Snapdragon 8s Gen 3 chipset, the device has been spotted with the Snapdragon 7 Gen 3 chipset.<br /><cmsannotation type="cmsannotation" annotationid="Motorola Edge 50 Pro launch date" comment="subhead" text="Motorola Edge 50 Pro launch date"><span data-til="noop">Motorola Edge 50 Pro launch date</span></cmsannotation><br />The Motorola Edge 50 Pro will launch in India on April 3. The device is expected to go on sale soon after the launch.<br /><cmsannotation type="cmsannotation" annotationid="Motorola Edge 50 Pro expected specifications" comment="subhead" text="Motorola Edge 50 Pro expected specifications"><span data-til="noop">Motorola Edge 50 Pro expected specifications</span></cmsannotation><br />The Motorola Edge 50 Pro will come with Android 14 out of the box and is expected to get three years of Android updates and five years of security updates. It is confirmed to feature a 6.7-inch 1.5K 144Hz curved pOLED display with HDR10+ support and Corning Gorilla Glass 5 protection.<br /><br />As per a Geekbench listing, the device will be powered by the Snapdragon 7 Gen 3 chipset. It is the same chipset that OnePlus is expected to use for its Nord CE 4 smartphone that is scheduled to launch on April 1. The device is expected to offer up to 12GB RAM and 256GB of internal storage.<br /><br />Coming to the camera department, the Motorola Edge 50 Pro will be equipped with a triple camera setup at the back consisting of a 50MP primary camera, a 13MP ultra-wide-angle camera and a 10MP telephoto camera with 50x digital zoom. The company has claimed that the device will come with extensive AI-powered features for the cameras, including AI adaptive stabilisation and AI photo enhancement.<br /><br />In line with some of its recent smartphones, the Motorola Edge 50 Pro will also come with a vegan leather back. It is expected to be available in three colour options – Black, Purple and White.<br /><br />We should know more about the device, including its battery capacity and charging support in the coming days.<br /><br /><strong>SEE ALSO:<br /><br /><a href="https://www.businessinsider.in/business/auto/news/jsw-group-and-saic-motors-jv-jsw-mg-motor-india-set-to-up-production-to-3-lakh-vehicles-a-year-with-a-new-car-every-3-6-months/articleshow/108647799.cms">JSW Group and SAIC Motor’s JV ‘JSW MG Motor India’ set to up production to 3 lakh vehicles a year with a new car every 3-6 months</a><br /><br /><a href="https://www.businessinsider.in/business/telecom/news/mobile-number-portability-revamped-to-reduce-sim-swap-frauds-here-are-the-new-rules/articleshow/108613683.cms">Mobile Number Portability revamped to reduce SIM swap frauds – Here are the new rules</a><br /><br /></strong><a href="https://www.businessinsider.in/business/auto/news/new-ev-policy-elon-musks-tesla-may-soon-enter-india-as-import-taxes-slashed-for-electric-vehicles/articleshow/108527306.cms"><strong>New EV Policy: Elon Musk’s Tesla may soon enter India as import taxes slashed for electric vehicles</strong></a><br />

Motorola Edge 50 Pro to launch in India on April 3 – Everything we know so far

<ul><li><keyword id="19906087" type="General" weightage="20" keywordseo="hyundai" source="keywords">Hyundai</keyword> Motor India Limited is set to debut in India's stock market.</li><li>The IPO will open on October 15, making it the first car company in over two decades to go public in India.</li><li>Here’s everything you need to know about the South Korean automaker ahead of its IPO.</li></ul> Hyundai Motor India Limited, the Indian arm of South Korean automaker Hyundai Motor Company is all set to make its stock market debut in India as its initial public offering (IPO) opens on October 15. This will be the first market outside South Kores where the country is listed.<br /><br />Hyundai, which entered the Indian market in 1996 is one of the top automakers in India, moving between the second and third spots. The company emerged as the second biggest automaker in Hyundai. Since it entered the Indian market, the company has sold over 80 lakh cars in the country.<br /><br />Hyundai intends to establish India as a global manufacturing and export hub for the company and this might be an initial step in this direction.<br /><br />KFin Technologies is the registrar for the public issue and advisors for the issue include Kotak Investment Banking, Citi, HSBC, JP Morgan and Morgan Stanley.<br /><br /><h2>India’s biggest IPO</h2>Hyundai India is looking to raise ₹27,870 crore from the IPO, significantly higher than the ₹21,008 crore raised by the state-owned Life Insurance Corporation of India (LIC) in 2022, making it the biggest IPO in India’s history.<br /><br /><div type="Article" hostid="261" msid="111690863" title="The biggest IPOs in India’s history – LIC to Paytm, companies that have raised the most funds" mstype="2" mssubtype="0"></div><br /><h2>About the IPO</h2>The upcoming IPO from Hyundai is entirely an offer for sale (OFS), with the company looking to offload up to 17.5% of shares, which is 14.22 crore shares with a price band of ₹1865 to ₹1,960 per share. Bids can be made in a lot size of 7 shares or multiples of 7 shares.<br /><br />The IPO opens on October 15 and will close on October 18. While the allotment will be finalised on October 18, the shares will be listed on the stock exchange on October 22.<br /><br />At the upper end of the price band, Hyundai Motor India will be valued at $18 billion (approx. ₹1.6 lakh crore), which is around 40% of its parent company, Hyundai Global’s $45 billion valuation.<br /><br />As it is entirely an OFS, the company won’t receive any funds and all the funds raised will go to Hyundai Global. However, the company has said that part of the funds will be allocated towards research and development, especially in electric vehicles (EVs) and hybrid technologies.<br /><br />The company has reserved 7.78 lakh shares with a value of ₹131 to ₹138 crore for employees. Employees will get these shares at a discount of ₹186 per share.<br /><br /><h2>First carmaker in over two decades to go public</h2>In addition to being the biggest IPO in the country’s history, this will also make the company the first car maker to go public in India in over two decades. The last car maker to go public was Maruti Suzuki, which held its IPO in 2003.<br /><br /><div type="Article" hostid="261" msid="114120828" title="The Ola Electric Saga: Are surge in complaints and declining market share a wake-up call for Bhavish Aggarwal?" mstype="2" mssubtype="0"></div><br />With the IPO, the company will join other car makers such as Maruti Suzuki, Tata Motors and Mahindra &amp; Mahindra to be listed in the Indian stock market.<br /><br /><h2>Hyundai in India</h2>The Indian market contributes to around 15% of the company’s global sales and is the third biggest market for the company after the United States and South Korea.<br /><br />The company has already invested around $5 billion in the country and plans to invest an additional $4 billion over the next few years.<br /> Company’s financials<br /><br /><table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Period ended<br /><br /></td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue<br /><br /></td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">PAT<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mar-22<br /><br /></td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹47,966.05<br /><br /></td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,901.59<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mar-23<br /><br /></td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹61,436.64<br /><br /></td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,709.25<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mar-24<br /><br /></td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹71,302.33<br /><br /></td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹6,060.04<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">June-24<br /><br /></td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹17,567.98<br /><br /></td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,489.65<br /><br /></td></tr></tbody></table><br /><em>Amount in ₹ crore</em><br /><br />Hyundai recorded a revenue of ₹71,302.33 crore in FY24, up from ₹61,436.64 crore in FY23 and ₹47,966.05 crore in FY22. During the 3-month period from April to June 2024, the company earned a revenue of ₹17,567.98 crore.<br /><br />The company recorded a profit after tax (PAT) of ₹6,060.04 crore in FY24, up from ₹4,709.25 crore in FY23 and ₹2,901.59 crore in FY22. The company recorded a PAT of ₹1,489.65 crore from April to June 2024.<br /><br />“Hyundai Motor India is seeking a slightly higher premium to Maruti and lower to M&amp;M based on price earnings ratio while Hyundai stands to be expensive in terms of price to book value. Hyundai India justifies its premium ask considering its leadership in SUV sales, world-class brand image followed by better safety ratings, Multi-segment growth visibility largely been driven by its popular SUVs, particularly the Creta, Exter, and Venue models in the Indian market,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.<br /><br /><h2>Hyundai paid ₹10,780 crore dividend in FY24</h2>Ahead of the IPO, Hyundai paid a ₹10,780 crore dividend in FY24, up from ₹4,653.42 crore dividend in FY23 and ₹1,493.45 crore dividend in FY22.<br /><br />With this, the company’s cash and bank balance has declined from ₹17,741.15 crore a year ago to ₹9,017.35 crore.<br /><br /><div type="Article" hostid="261" msid="113925972" title="September Auto sales – Automakers report a decline, Mahindra and Mahindra overtakes Tata Motors" mstype="2" mssubtype="0"></div><br />“As a result, our ability to utilise our internal accruals and cash and bank balances has been reduced. Any resultant insufficiency in our internal accruals and cash and bank balance may require us to borrow money to meet our growth requirements and incur borrowing costs, which may adversely impact our profitability, financial ratios and results of operations,” the company said in its Red Herring Prospectus (RHP).<br /><br /><h2>Declining grey market premium</h2>Grey market premium (GMP) is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges. In essence, it is the premium above the issue price of a share.<br /><br />The GMP of Hyundai has been on a decline, from ₹570 around two weeks ago to ₹130.<br /><br /><h2>Key risks to remember</h2>Here are some of the key risks that the business faces:<br /><br /><h3>Rising part prices</h3>There has been an increase in prices of key vehicle parts over the years, especially chipsets. A further rise in price may impact the company’s profitability in the coming years.<br /><br /><h3>Production disruptions</h3>The company has said that any disruption to its Chennai plant will adversely impact the production and the company’s finances.<br /><br /><h3>Supplier dependency</h3>Another risk to keep in mind is the company’s dependency on its suppliers. Any disruption in its supply chain will adversely impact its production and profitability.<br /><br /><h3>Competition</h3>Hyundai alternates between the second and third position in the Indian car market. An increase in competition, with the increased sales of Mahindra and Mahindra, the company faces a new competitor.<br /><strong><br />SEE ALSO:<br /><br /><a href="https://www.businessinsider.in/business/auto/news/the-ola-electric-saga-are-surge-in-complaints-and-declining-market-share-a-wake-up-call-for-bhavish-aggarwal/articleshow/114120828.cms">The Ola Electric Saga: Are surge in complaints and declining market share a wake-up call for Bhavish Aggarwal?</a><br /><br /><a href="https://www.businessinsider.in/business/auto/webstories/top-selling-cars-in-india-in-september-2024-maruti-suzuki-dominates-with-seven-cars/slidelist/114112295.cms">Top selling cars in India in September 2024 – Maruti Suzuki dominates with seven cars</a><br /><br /></strong><a href="https://www.businessinsider.in/tech/mobile/news/samsung-leads-the-first-phase-of-festive-sales-with-a-20-market-share/articleshow/114070723.cms"><strong>Samsung leads the first phase of festive sales with a 20% market share</strong></a><br />

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