Hyundai Motor India Limited IPO: Everything You Need to Know
Hyundai Motor India Limited (HMIL), a subsidiary of the globally recognized Hyundai Motor Company, has been a dominant player in the Indian automotive market for years. With its innovative lineup of cars and cutting-edge technology, the company has captured a significant market share in India. Now, Hyundai Motor India is gearing up for a significant Initial Public Offering (IPO), offering investors a chance to own a piece of this automotive giant.
In this blog, we will cover all the essential details you need to know about the Hyundai Motor India Limited IPO, including the company’s financials, key highlights, and whether this IPO is a good investment opportunity.
Hyundai Motor IPO Overview
Hyundai Motor IPO is a book-built issue offering a total of 14.22 crore shares. The entire IPO is an Offer for Sale (OFS), which means the existing shareholders will be selling their shares, and no new capital will be raised. As of now, the IPO dates and price bands have not yet been announced. However, several key details have been made available, which we will discuss below.
IPO Details
| Details | Information |
|---|---|
| IPO Date | Yet to be announced |
| Face Value | ₹10 per share |
| Total Issue Size | 142,194,700 shares |
| Offer for Sale (OFS) | 142,194,700 shares of ₹10 |
| Listing at | BSE, NSE |
| Lead Managers | Kotak Mahindra Capital, Citigroup Global, HSBC Securities, J.P. Morgan, Morgan Stanley |
| Registrar | KFin Technologies Limited |
Hyundai Motor IPO Reservation
The allocation of shares under this IPO is divided across different categories:
| Investor Category | Shares Offered |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50.00% of the net issue |
| Retail Investors | Not less than 35.00% of the net issue |
| Non-Institutional Investors (NII) | Not less than 15.00% of the net issue |
This distribution is designed to ensure a balanced share allotment between institutional and retail investors.
Promoter Holding
Hyundai Motor Company, the parent company, is the sole promoter of Hyundai Motor India Limited. Here’s a look at the promoter’s stake pre- and post-IPO:
| Holding Type | Shareholding |
|---|---|
| Pre-Issue Shareholding | 100% |
| Post-Issue Shareholding | To be announced (subject to OFS) |
About Hyundai Motor India Limited
Company Background
Hyundai Motor India Limited was incorporated in May 1996 and is a part of the Hyundai Motor Group, one of the world’s leading automakers. With a presence in over 193 countries, Hyundai is the third-largest automobile manufacturer globally based on passenger vehicle sales.
Product Portfolio
Hyundai’s vehicle lineup is comprehensive, catering to a wide range of customers. Their models include sedans, hatchbacks, SUVs, and electric vehicles (EVs), with popular models such as:
- Grand i10 NIOS
- i20 and i20 N Line
- AURA
- Elantra
- Venue and Venue N Line
- Verna
- Creta and Creta N Line
- Alcazar
- Tucson
- Ioniq 5 (Electric SUV)
Manufacturing and Exports
Hyundai Motor India operates a state-of-the-art manufacturing facility near Chennai, capable of producing its full range of vehicle models. The company is not just a major player in India but also a significant exporter, serving markets across Africa, the Middle East, Bangladesh, Nepal, Bhutan, and Sri Lanka.
Financial Performance
Hyundai Motor India Limited has demonstrated impressive financial performance over the years. Here’s a look at the company’s financials:
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets (₹ Crore) | 32,488.34 | 34,573.34 | 28,358.06 | 26,730.57 |
| Revenue (₹ Crore) | 53,298.09 | 61,436.64 | 47,966.05 | 41,404.65 |
| Profit After Tax (₹ Crore) | 4,382.87 | 4,709.25 | 2,901.59 | 1,881.16 |
| Net Worth (₹ Crore) | 19,777.92 | 20,054.82 | 16,856.26 | 15,311.34 |
| Reserves (₹ Crore) | 18,965.38 | 19,242.28 | 16,043.71 | 14,498.80 |
The company has witnessed steady growth in revenue and profits, positioning it as a strong contender in the Indian automobile sector.
IPO Objectives
It is important to note that Hyundai Motor India Limited will not receive any proceeds from this IPO. The Offer for Sale (OFS) ensures that all proceeds will go directly to the promoter selling shareholders, after deducting related expenses and taxes.
Should You Invest in Hyundai Motor IPO?
While the final decision to invest will depend on the IPO price band, Hyundai Motor India Limited’s robust financials and market positioning make it an attractive prospect for investors. The company benefits from:
- Strong Brand Presence: Hyundai has consistently been one of the top automakers in India, with a diverse product lineup catering to various customer segments.
- Financial Stability: The company’s steady revenue growth and profitability, coupled with a strong balance sheet, indicate solid financial health.
- Growth Potential in Electric Vehicles (EVs): With its entry into the EV segment through the Ioniq 5, Hyundai is well-positioned to capitalize on the growing demand for electric vehicles in India.
- Export Market: Hyundai Motor India’s ability to export its vehicles to international markets provides additional growth opportunities.
However, as the IPO is entirely an Offer for Sale (OFS), the proceeds won’t be used for business expansion, which may be a factor for some investors.
Conclusion
The Hyundai Motor India Limited IPO is a significant event in the Indian stock market, offering a slice of one of the country’s most successful automotive companies. As with any IPO, potential investors should carefully evaluate their risk tolerance and consider consulting a financial advisor before making any investment decisions.
Disclaimer
The information provided in this blog is for educational purposes only and should not be considered as financial advice. Investment in IPOs involves risks, and it is advisable to conduct thorough research and seek professional guidance before making any investment decision. Hyundai Motor IPO details are subject to change as new information becomes available.
By understanding the Hyundai Motor India Limited IPO’s key aspects and analyzing the company’s financials, investors can make informed decisions on whether to subscribe to this highly anticipated offering. Stay tuned for more updates on the IPO date and price bands as they become available!
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