Hyundai Motor set to Launch its IPO

Key Takeaways from the Hyundai Motor India Limited IPO

• Up to 142,194,700 equity shares will be offered through a 100% offer for sale by the promoter, Hyundai Motor Company.
• Shares are priced between ₹1865 and ₹1960, with a discount of ₹186 for eligible employees.
• The minimum bid lot is 7 equity shares, with a maximum subscription amount of ₹2,00,000 for retail investors and ₹5,00,000 for eligible employees.
• The IPO opens for bidding from October 15 to October 17, 2024, with anchor investor bidding starting on October 14, 2024.
• The book running lead managers are Kotak Mahindra, Citigroup, HSBC, J.P. Morgan, and Morgan Stanley, with sponsorship from HDFC, Axis, ICICI, and Kotak Mahindra Banks.

This is a 100% offer for sale by Hyundai Motor Company, and the entire proceeds will go to the selling shareholder. The issue type is classified under 100% book building offering, and the price band has been set between ₹1865 to ₹1960 per equity share. Employees eligible for the offer will get a discount of ₹186 on every equity share.

The face value of each equity share is ₹10, with a tick size of Re.1. The bid lot is set at 7 equity shares, with multiples thereof as the minimum order quantity. The maximum subscription amount for retail investors is ₹2,00,000, while eligible employees can subscribe for up to ₹5,00,000. IPO market timings will be from 10:00 a.m. to 5:00 p.m. 

The IPO will tentatively begin with Anchor Investor Bidding on Monday, October 14, 2024, followed by the IPO Opening on Tuesday, October 15, 2024, and closing on Thursday, October 17, 2024. 

In relation to reservations, 50% of the net offer is required for Qualified Institutional Buyers, and not less than 15% should be kept for Non-Institutional Investors. Meanwhile, 35% is reserved for Retail Individual Bidders. Equity shares up to 778,400 would also be reserved for employees. 

The Book Running Lead Managers for this IPO are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited, and Morgan Stanley India Company Private Limited. The sponsor banks for the IPO include HDFC Bank Limited, Axis Bank Limited, ICICI Bank Limited, and Kotak Mahindra Bank Limited.

About Hyundai Motor India Limited

Hyundai Motor Group is the third largest auto OEM in the world based on passenger vehicle sales. It offers four-wheeler passenger vehicles that are reliable, feature-rich, and innovative, backed by the latest technology. The company also manufactures auto parts such as transmissions and engines. The company provides mobility solutions by having 1,366 points of sales and 1,550 service points across India. Until 31 March 2024, the company has sold almost 12 million passenger vehicles in India and through exports. The four-wheeler passenger vehicle manufacturing segment of the company consists of the manufacturing and sale of sedans, hatchbacks, SUVs, and electric vehicles.

The models produced by the company are Grand i10 NIOS, i20, i20 N Line, AURA, Elantra, Venue, Venue N Line, Verna, Creta, Creta N Line, Alcazar, Tucson, and the all-electric SUV Ioniq 5. HMIL has a production unit close to Chennai that can manufacture all its vehicle models. The group exports its products to Africa, the Middle East, Bangladesh, Nepal, Bhutan, and Sri Lanka.

Key Takeaways from Suzlon Energy Partnership with Jindal Renewables:

• Suzlon Energy partnered with Jindal Renewables to develop a 400 MW captive wind power project, marking Jindal Group's first venture into wind energy.
• This project is the largest commercial and industrial (C&I) wind energy order in India.
• Suzlon will install 127 wind turbine generators in the Koppal region of Karnataka, each with a capacity of 3.15 MW.
• The electricity generated will power steel plants in Chhattisgarh and Odisha, enhancing sustainability in steel production.

The project marks the first foray into wind energy for Jindal Group and is the largest commercial and industrial (C&I) order of its kind in India. 

Suzlon will install 127 wind turbine generators in the Koppal region of Karnataka, each with a capacity of 3.15 MW. 

The electricity generated will be used to power steel plants in Chhattisgarh and Odisha, promoting sustainability in steel production.

About Jindal Renewable Power Private Limited (JRPL):

Jindal Renewable Power Private Limited (JRPL is focused on leading renewable energy initiatives in India, currently working on nearly 3 GW of various renewable projects with secured power contracts. The company plans to expand its portfolio to approximately 12 GW by 2030, which will include renewable energy assets, storage solutions, and significant green hydrogen production facilities, positioning itself as a major player in carbon reduction in the country.

About Suzlon Group:

The Suzlon Group is a prominent provider of renewable energy solutions globally, with around 20.8 GW of wind energy capacity installed in 17 countries. Based in Pune, India, Suzlon encompasses Suzlon Energy Limited and its subsidiaries. The organization features in-house research and development centers in Germany, the Netherlands, Denmark, and India, along with manufacturing facilities across India. With over 29 years of experience, Suzlon employs more than 6,400 people and holds the title of India’s leading wind energy service company, boasting a service portfolio of over 14.8 GW. The Group also has around 6 GW of capacity installed outside India and offers a range of products, including its 2 MW and 3 MW wind turbines.

Key Takeaways from the Launch

• UGRO Capital's public issue of NCDs has a face value of ₹1,000 each, with a base issue size of ₹10,000 lakhs and an option to retain oversubscription up to ₹20,000 lakhs.
• The effective annualised yield for the NCDs is up to 10.91% per annum.
• The issue is open from October 10 to October 23, 2024, with an option for early closure.
• The NCDs are rated “IND A+/Stable” by India Ratings, indicating strong safety for investors.

This public issue has a base size of ₹10,000 lakhs, with an option to retain oversubscription of up to ₹10,000 lakhs, aggregating to a total of ₹20,000 lakhs. The effective annualized yield on these NCDs is up to 10.91% per annum.

The issue will remain open from October 10, 2024 to October 23, 2024. Nevertheless, if the same is closed earlier to the said dates, then the same would be governed by Regulation 33A of the SEBI NCS Regulations. The NCDs are proposed to be listed on Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with NSE being the designated exchange for the issue. Debentures have been rated "IND A+/Stable" by India Ratings and Research Private Limited, signifying the undertaking has a very high safety level regarding the timely servicing of financial obligations.

UGRO Capital's NCDs will have tenures of 18, 24, and 30 months, with effective yields to investors in all categories of 10.64% to 10.91% per annum. Every NCD would be redeemed for ₹1,000 on maturity. All the capital raised through this issue would go for the company's onwards lending and financing business, out of which at least 75% would be utilised for these purposes and a maximum of 25% toward general corporate purposes.

As of March 31, 2024, UGRO Capital's Capital Adequacy Ratio (CRAR) stood at 20.75%, improving to 27.94% for the quarter ending June 30, 2024. The company’s assets under management (AUM) have shown remarkable growth, increasing from ₹2,96,890.60 lakhs on March 31, 2022, to ₹9,21,772.71 lakhs by June 30, 2024. The average ticket size for loans stood at ₹13.66 lakhs, with an average lending rate of 16.66% per annum.

About Ugro Capital Limited  

Ugro Capital Limited is a technology-driven lending for small businesses focused on a data-centric approach to addressing the needs of small enterprises in capital across eight key sectors. Ugro Capital provides financing options that include supply chain financing, unsecured business loans, machinery loans, property-secured business loans, innovative financial products, and loans for microenterprises.

Key Takeaways from JSW Steel Crude Steel Production:

• JSW Steel reported consolidated crude steel production of 6.77 million tonnes for Q2 FY25, marking a 6% increase year-on-year and a 7% increase quarter-on-quarter.
• Indian operations achieved record production of 6.63 million tonnes, up 7% year-on-year and 9% quarter-on-quarter, with capacity utilisation at 91%.
• US operations remained steady year-on-year but saw lower production compared to the previous quarter due to maintenance.
• The company expanded its capacity in Odisha and commissioned a new blast furnace in Vijayanagar, increasing total crude steel capacity in India from 29.2 million tonnes to 34.2 million tonnes.

The company achieved a record production of 6.63 million tonnes in its Indian operations, marking a 7% year-on-year increase and a 9% rise from the previous quarter. Capacity utilisation in these operations was 91% for Q2 FY25. In contrast, production at JSW Steel's US operations remained steady year-on-year but declined compared to the last quarter due to a maintenance shutdown.

During the quarter, JSW Steel successfully expanded its capacity by 1 million tonnes per annum at BPSL Odisha, bringing its total crude steel capacity to 4.5 million tonnes. Additionally, a new 4.5 million tonne per annum blast furnace at Vijayanagar has been commissioned. 

Once fully operational, this facility will increase the total crude steel capacity at Vijayanagar to 17.5 million tonnes, raising the overall capacity of JSW Steel's Indian operations from 29.2 million tonnes to 34.2 million tonnes.

For the first half of FY25, the production figures indicate that Indian operations produced 12.75 million tonnes, a 3% increase from the previous year, while total consolidated production reached 13.12 million tonnes, also reflecting a 3% year-on-year growth.

About JSW Steel Limited: 

JSW Steel is the flagship company of the diversified JSW Group, a major player in sectors such as energy, infrastructure, cement, and more, with a market capitalisation of $24 billion. Over the past three decades, it has transformed from a single manufacturing unit into India's leading integrated steel producer, boasting a crude steel capacity of 35.7 million tonnes per annum (MTPA), including 1.5 MTPA in the US. The company’s Vijayanagar plant in Karnataka is the largest single-location steel facility in India, currently producing 17.5 MTPA, with further expansions underway. JSW Steel is committed to innovation, collaborating with JFE Steel of Japan to access advanced technologies for producing high-value special steel products used across various industries.

Recognised for its excellence and sustainability efforts, JSW Steel has received numerous accolades, including being named a Steel Sustainability Champion by the World Steel Association. The company aims to reduce its carbon emissions by 42% by 2030 and achieve net neutrality by 2050, with plans to power its operations entirely with renewable energy. In addition, JSW Steel prioritises biodiversity, air quality improvement, and water conservation, while fostering a strong workplace culture, having been recognised as a Great Place to Work for several consecutive years. Overall, JSW Steel exemplifies leadership in the steel industry through its commitment to growth, innovation, and sustainable practices.