₹ 13720 / 7 shares
IPO Details
RHP/DRHPIssue Date
15 Oct - 17 Oct'24
Investment/lot
₹ 13720
Price Range
1865 - 1960
Lot Size
7
IPO Size
₹ 27870.16 Cr
IPO Listing Details
Listing On
22 Oct'24
Issue Price
1960
Listed Price
₹ 1934
Retail Gain/Listing Gain
▼-1.33%
IPO Timeline
The Hyundai IPO is purely an offer for sale with no fresh issue.
| IPO type | Offer for sale |
|---|---|
Offer for sale size | Up to 142,194,700 equity shares |
Offer process | 100% book built offer |
Hyundai Motor India Company Background
Hyundai Motor India Ltd was incorporated on May 6, 1996 as a public limited company under the Companies Act, 1956. It is a part of the Hyundai Motor Group, the third largest auto original equipment manufacturer (OEM) in the world based on passenger vehicle sales in CY2023, as per CRISIL.
The company has a track record of manufacturing and selling reliable, feature-rich, innovative, and backed by the latest technology four-wheeler passenger vehicles. It has a portfolio of 13 models across multiple passenger vehicle segments by body type, such as sedans, hatchbacks, sports-utility vehicles (SUVs), and battery electric vehicles (EVs). It also manufactures parts, such as transmissions and engines.
Hyundai Motor India IPO Review | IPO Issue details | India’s BIGGEST IPO | Watch Before Applying
Kotak Securities
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Retail and HNI Applications
The retail portion of the Hyundai Motors IPO consists of not less than 49,495,705 equity shares of face value of ₹ 10. Not less than 35% of the net offer is for retail individual bidders.
Promoter Information
Hyundai Motor Company is the promoter selling shareholder in this IPO. As per the company's Red Herring Prospectus, the promoter i.e. Hyundai Motor Company holds 812,541,100 equity shares of face value of ₹ 10 each. This includes 100 equity shares each held by Wangdo Hur, Kuen Han YI, Unsoo Kim, Jae Wan Ryu, Daeick Kim and Jong Hoon Lee.
IPO Objectives
The company will not receive any proceeds from the offer. All the offer proceeds will be received by the promoter-selling shareholder after the deduction of offer-related expenses and relevant taxes. The company expects listing the equity shares will enhance its visibility and brand image and provide liquidity and a public market for equity shares in India.
Peer Comparison
Maruti Suzuki India Ltd, Tata Motors Limited and Mahindra and Mahindra Ltd are the listed peers of Hyundai Motors, whose business profiles are comparable to its business in terms of size and model. The table captures the key accounting ratios of Hyundai Motors Ltd with its listed peers for FY 24:
| Company | Revenue from operations (in ₹ crores) | NAV per equity share | Return on net worth | Diluted EPS |
|---|---|---|---|---|
Hyundai Motor India Ltd | 69829.057 | 131.26 | 56.82% | 74.58 |
Maruti Suzuki India Ltd | 141858.20 | 2723.77 | 15.75% | 429.01 |
Tata Motors Ltd | 437927.770 | 221.67 | 36.98% | 81.89 |
Mahindra and Mahindra Ltd | 138279.30 | 594.08 | 17.02% | 100.70 |
Anchor Investor Information
The bidding for anchor investors will start on October 14 and will be completed on the same day. 50% of the equity shares allotted to anchor Investors under the Anchor Investor Category shall be locked in for 90 days from the date of allotment. The remaining 50% of the equity shares allotted to anchor investors in the Anchor Investor Category shall be locked in for 30 days from the date of allotment.
IPO Registrar and Book Running Lead Managers
KFin Technologies Limited is the IPO registrar of the Hyundai IPO. The book running lead managers include:
- Kotak Mahindra Capital Company Ltd
- Citigroup Global Markets India Private Limited
- HSBC Securities and Capital Markets (India) Private Limited
- J.P. Morgan India Private Limited
- Morgan Stanley India Company Private Limited
Business model
The company’s business model is founded on these five fundamental pillars:
Strong parentage of Hyundai Motor Group
Hyundai Motor India Ltd is a part of the Hyundai Motor Group and has its support in many aspects of its operations including R&D, design, product planning, quality control, marketing and distribution, etc.
Advanced technology
The company deploys a technology that is integrated across its operations. As a key part of the Hyundai Motor Group, it gains early access to global trends in automotive technologies and features.
Hyundai brand
The company has established Hyundai as a trusted brand in India, as evident from the 50 awards it received for the Hyundai brand and products in fiscal 2024 alone.
Localisation
Under its localised supply chain ecosystem, the company sources the majority of parts and materials from suppliers based in India.
Win-win approach
The company aims to build long-term relationships with all its stakeholders and create sustained value by following a win-win approach.
Growth trajectory
Since 1998 and up to March 31, 2024, Hyundai Motor India Ltd cumulatively sold nearly 12 million passenger vehicles in India and through exports. The company primarily sells passenger vehicles in India through its large dealer network across urban and rural India.
Its total sales outlets stood at 1366 as of December 31, 2023, as against 1282 as of March 31, 2022. As of December 31, 2023, the company was operating through 82 international distributors outside India. In CY2023, the company ranked among the top three contributors to HMC’s global sales volumes. Its contribution to HMC’s sales volumes increased from 15.48% in CY2018 to 18.19% in CY2023.
Market position
Hyundai Motor India Ltd has been the second largest auto OEM in the Indian passenger vehicles market since fiscal 2009. The company believes its current market position is because of:
- Its wide product offerings, stakeholder relationships and operations
- The strong Hyundai brand in India
- Its ability to leverage new technologies to enhance operational and manufacturing efficiency
- Its ability to expand into new businesses, such as EVs, through innovation
The company is committed to investing in R&D and new passenger vehicle launches in order to further strengthen its market position and improve the attractiveness of its passenger vehicles to customers.
Hyundai Motor India Key Financials
| Particulars | As of March 2024 | As of March 2023 | As of March 2022 |
|---|---|---|---|
Revenue from Operations | 112,473.90 | 82,645.96 | 57,048.97 |
Total Equity and Liability | 105,294.21 | 112,806.45 | 144,057.36 |
Return on average net worth | 23.48% | 17.21% | 12.29% |
All Financial Information about Hyundai Motor india
Presentation of key financial metrics and indicators to assess Hyundai Motor India financial health.
Particulars (in Rs. million)
Particulars (in Rs. million)
All Financial Information about Hyundai Motor India
| Particulars (in ₹ Million) | As of 31st March, 2024 | As of 31st March, 2023 | As of 31st March, 2022 |
|---|---|---|---|
Total Income | 713,023 | 614,366 | 479,660 |
Profit/(Loss) before tax | 82,398 | 63,455 | 37,722 |
Net profit/(loss) | 60,600 | 47,092 | 29,015 |
EPS% | 74.58 | 57.96 | 35.71 |
EBITDA | 91,326 | 75,487 | 54,860 |
Hyundai IPO Strengths
The second largest auto OEM in India and the largest exporter of passenger vehicles.
The company has been the second largest auto OEM in the Indian passenger vehicles market since FY 2009 (in terms of domestic sales volumes) according to the CRISIL Report.
A diverse portfolio of passenger vehicles across powertrains and major passenger vehicle segments
Hyundai Motor India’s current portfolio of passenger vehicles caters to a diverse customer base. Their portfolio of 13 passenger vehicle models across major passenger vehicle segments by body type includes sedans (Aura and Verna), hatchbacks (Grand i10 NIOS, i20 and i20 N Line) and SUVs (Exter, Venue, Venue N Line, Creta, Creta N Line, Alcazar, Tucson and IONIQ 5).
Together, the passenger vehicle segments accounted for approximately 89% of the total passenger-vehicle sales volume in India in Fiscal 2023 and approximately 88% for the first 11 months of Fiscal 2024, based on the data provided in the CRISIL Report.
Ability to identify emerging market trends in a timely manner
The ability to introduce innovative passenger vehicles and technologies to meet customer needs in India is one of their core competencies. As a key part of the Hyundai Motor Group, they can access the latest global trends in the automotive industry, technologies and features. Their R&D centre in Hyderabad, works closely with the HMC’s centralised R&D hub at Namyang, Korea. This centre in Hyderabad is being expanded to become the hub for global compact passenger vehicle R&D for HMC. Further, their subsidiary, Hyundai Motor India Engineering Private Limited (“HMIEPL”), provides technical expertise to support local customisation.
Hyundai IPO Risk Factors
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Hyundai Motor India depends on a limited number of suppliers for parts and materials. Any interruption in the availability of parts and materials could adversely affect their operations.
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Increases in the prices of parts and materials required for their operations could hurt their business.
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The company, one of their subsidiaries and their promoters are involved in outstanding legal proceedings and any adverse outcome in any of these proceedings may hurt their business.
Key Strategies of Hyundai Motor India
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Leverage Hyundai Motor India’s deep understanding of consumer preferences to successfully expand their passenger vehicle portfolio
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Calibrate manufacturing capacity expansion and efficient capital allocation
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Focus on increasing EV market share
Conclusion
Hyundai Motor India is an exciting prospect for potential investors thanks to its global research facilities that gives them immediate access to the latest trends, technologies and Features and its position as the second largest OEM in India. However, ruthless competition in the sector and other factors can pose a challenge for the global conglomerate. If you want to invest in the IPO, ensure you do your homework and asses the risks and challenges thoroughly.
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
How To Apply for Hyundai Motor India Ltd IPO?
Here are the steps to apply for Hyundai Motor India Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Hyundai Motor India IPO FAQs
When is Hyundai Motor India IPO listing date?
Hyundai Motor India IPO will list on 2024-10-22.
What is the issue size of Hyundai Motor India IPO?
27870.16 is the issue size of Hyundai Motor India IPO.
What is the minimum lot size required for Hyundai Motor India IPO?
The minimum lot size is 7 shares and the investment required is ₹13720.
What is the price band of the Hyundai Motor India IPO?
The price band of Hyundai Motor India IPO is ₹1865 to ₹1960.
Where can I read more about Hyundai Motor India business?
You can read more about Hyundai Motor India and its IPO from the company’s red herring prospectus (RHP) here.
What is Hyundai Motor India IPO?
The Hyundai Motor India IPO is an Initial Public Offering (IPO) involving the sale of up to 142,194,700 equity shares, each with a face value of ₹10. It is an offer for sale (OFS) offered by Hyundai Motor Company, the promoter.
How do you research the Hyundai Motor IPO before investing?
To know more about the Hyundai Motor IPO, review the Red Herring Prospectus (RHP) for financials, business models, and industry analysis. Pay attention to the company’s financial performance, industry growth trends, highlighted risks, and details of the offer.
How can you increase your chances of getting a Hyundai Motors IPO allotment?
To improve your chances of allotment in the Hyundai Motor IPO, consider the following:
a. Apply through different categories, such as Retail Individual Investor (RII) or Non-Institutional Investor (NII), to increase the probability of allotment. b. You can also use a single application to place multiple bids at different price points within the price band. This allows flexibility in the bidding process and increases the chance of being considered for the allotment if the IPO price is fixed at a point within your range.
When will the Hyundai Motor India IPO be allotted?
The allotment process for the Hyundai Motor India IPO will be finalised following the close of the offer period, and the details will be published on the websites of the registrar and stock exchanges.
What would be the listing gains on the Hyundai IPO?
Listing gains for the Hyundai Motor India IPO depend on the final offer price, market conditions, and investor demand. It's advisable to monitor market trends and analyst reports for expected listing performance.
Can I submit multiple applications for the public issue of Hyundai Motor India Limited using one PAN?
No, multiple applications from the same PAN for the public issue are not allowed. Submitting more than one application can result in the rejection of all your bids under the SEBI regulations.
How do I approve the UPI mandate request for the Hyundai Motor India IPO?
To approve the UPI mandate for the Hyundai Motor India IPO, ensure you use the correct UPI ID while applying and authorise the mandate request through your UPI app before the end of the bidding period.
Where can I read more about Hyundai IPO?
For detailed information about the Hyundai Motor India IPO, refer to the Red Herring Prospectus available on the websites of the company, SEBI, BSE, NSE, and the registrar to the offer, KFin Technologies.
Who is the registrar of Hyundai Motor IPO?
The registrar for the Hyundai Motor India IPO is KFin Technologies Limited. They will handle the share allotment and refund process.
How to purchase Hyundai IPO in India?
To purchase the Hyundai Motor India IPO, use the ASBA (Application Supported by Blocked Amount) facility through your bank or trading platform. Submit your bid during the offer period and ensure the UPI mandate is approved for the payment.
What is the issue size of the Hyundai Motor IPO?
The Hyundai Motor India IPO is an offer to sell up to 142,194,700 equity shares, each with a face value of ₹10. The total issue size is ₹27,855.68 crores.
