Hyundai Motor India IPO Details: India’s Biggest IPO

Hyundai Motor India IPO, the largest public issue in India is set to open on October 15, 2024. In terms of sales, this company is the second largest car manufacturer in India. It is also the second-largest auto OEM in the Indian passenger vehicles market and the second-largest passenger vehicle exporter in India. So, let’s go through all the details of this biggest IPO, its size, financials, expected Hyundai share price, and comparison with peers.

Hyundai IPO Date 2024

The important dates related to the Hyundai Motor IPO are:

• Bidding Opening Date: October 15, 2024
• Bidding Closing Date: October 17, 2024
• Allotment Date: October 18, 2024
• Initiation of Refunds (in case of less or no allotment): October 21, 2024
• Shares Credited to Your Demat Account: October 21, 2024
• Listing Date: October 22, 2024
• Hyundai IPO Date for Anchor Investor Bidding: October 14, 2024

Hyundai Motor India Limited IPO Details

Its total issue size is ₹27,870.16 crores which only has a component of an offer for sale and not any fresh issue size.

Here are the key details of the Hyundai Motor India IPO:

• Hyundai IPO Price Band: ₹1,865 to ₹1,960 per share
• Face Value: ₹10 per share
• Lot Size: 7 Shares
• Total Issue Size and Amount: 14,21,94,700 shares (amounting to ₹27,870.16 crores)
• OFS Size and Amount: 14,21,94,700 shares (amounting to ₹27,870.16 crores)
• Listing On Exchange: NSE and BSE

Hyundai Motor India IPO Proceeds

Hyundai Motor India Limited will not get any offer issue proceeds raised from this IPO for any internal activities. Instead, all this will go to a promoter (parent company, Hyundai Motor Company) who sells shares in this IPO after subtracting offer-related costs and applicable taxes.

Hyundai Motor India IPO Reservations

Here are the details of Hyundai IPO reservations to different investors:

• For retail investors: At least 35% of the net offer
• For QIBs: Maximum of 50% of the net offer
• For NIIs: At least 15% of the net offer
• For eligible employees: Maximum of 5% of the post-offer paid-up equity share capital

Hyundai Motor India Lot Size

Hyundai Motor IPO lot size is 7 shares and bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply in this IPO are:

Applicant Type	Lot Size	Number of Shares	Amount (in ₹)
Retail (Min)	1	7	₹13,720
Retail (Max)	14	98	₹1,92,080
S-HNI (Min)	15	105	₹2,05,800
S-HNI (Max)	72	504	₹9,87,840
B-HNI (Min)	73	511	₹10,01,560

Hyundai Motor India IPO Promoter Holding

Hyundai Motor Company is the promoter and will sell up to 14,21,94,700 equity shares in the Hyundai Motors India IPO. Their shareholding of 100% will be reduced to 82.50% post-issue.

Hyundai Motor India: Company Overview

Incorporated in 1996, Hyundai Motor India is a part of South Korea’s Hyundai Motor Group which is the third-largest auto OEM (Original equipment manufacturer) in the world for its passenger vehicles sales. Since FY 2009, Hyundai Motor India has maintained its second spot of auto OEM in India’s passenger vehicles segment.

Hyundai Motor India Limited’s portfolio consists of 13 models covering sedans, SUVs, and EVs. In CY23, it holds a place in the top three positions in the group company Hyundai Motor’s global sales.

The company’s key strengths are: the backing of the big Hyundai Group, extensive product offerings, advanced technologies in manufacturing, EV foray, localization, and long-term relationships with all the stakeholders.

Hyundai Motors India Limited Financials

Hyundai Motor India’s key financial metrics for different financial years are as follows:

Period Ended	30 Jun 2024	31 Mar 2024	31 Mar 2023	YoY Change
Revenue	17,567.98	71,302.33	61,436.64	16.06%
Profit After Tax	1,489.65	6,060.04	4,709.25	28.68%
Assets	25,370.24	26,349.25	34,573.34	-23.79%
Net Worth	12,148.71	10,665.66	20,054.82	-46.82%
Reserves and Surplus	11,336.17	9,853.12	19,242.28	-48.79%
Total Borrowing	758.14	767.92	1,158.60	-33.72%
Total Cash and Bank Balances	8,512.78	9,017.35	17,741.15	-49.17%
Earning per Shares (in ₹)	18.33	74.58	57.96	28.67%

*(in ₹ crores)

• Both the revenue and PAT of Hyundai Motors India have registered a YoY (year-on-year) growth in FY24 of around 16% and 29%, respectively.
• The assets and net worth, on the other hand, have registered a decline of 24% and 47%, respectively.
• The total borrowing has fallen by around 34% in FY24 from FY23.
• Total cash balances have fallen by nearly 49%, while EPS increased by 29% from FY23 to FY24.

Peer Comparison of Hyundai Motor India

The comparison of the Hyundai Motor India Limited’s performance with the competitors are:

Company Name	Revenue from Operations (in ₹ million)	Return on Capital Employed (%)	Return on Net Worth (%)	Debt Equity Ratio (x)	Current Ratio (x)	Debt Service Coverage Ratio (x)
Maruti Suzuki	14,18,582.00	23.80%	18.30%	0.0004	0.80	11.90
Hyundai Motor India	6,98,290.57	62.90%	56.82%	0.07	1.24	27.79
Tata Motors	43,79,277.70	15.00%	30.00%	0.46	0.56	0.98
Mahindra & Mahindra	13,82,793.00	26.75%	22.41%	0.03	1.40	47.87

*(For FY24 ending)

• The ROCE is the highest amongst all the peers and RoNW is also the highest.
• The debt-to-equity ratio is less than 1 and is competitive meaning that the company is more reliant on equity financing.
• The current ratio is more than 1 which means that Hyundai Motors India can meet its short-term financial obligations.

Risk Factors in Hyundai Motor India IPO

The risk factors of the company that can later on affect its financials or Hyundai share price are as follows:

1. An increase in the cost of materials consumed (trims, engines, transmissions, steel) will affect the overall cost and hence the revenue earned.
2. Conflict of Interest with the group companies, Kia Corporation and Kia India Private Limited as they are in the same type of business.
3. Dependency on the group company, Mobis India Limited for supplying parts required for after-sale services to the dealers.
4. Reliance on the parent company, Hyundai Motor Company for the operations, including parts, materials, technology, and R&D.
5. An increase in the fee under the royalty agreement with the Hyundai Motor Company might push the overall cost.
6. Sales volume comes majorly from the non-EV passenger vehicles sales segment and still a long way to go to fully adapt to the EV market with only a 1.1% market share.
7. More than 20% of the revenue comes from the export business which is to the Hyundai Motor Company.
8. More than 65% of the domestic sales volume is driven by the SUV models in India.
9. Manufacturing of the passenger vehicles and parts is done only at the Chennai facility and any disruptions might affect the operations.
10. The domestic market share of the company in India’s passenger vehicles market decreased from 17.6% in FY20 to 14.6% at the end of June 30, 2024.

Hyundai Share Price and GMP

Hyundai Motor India GMP can help you gauge how it might get listed in the stock market. Its current GMP is ₹145 and its estimated listing price is ₹2,105 as of October 9, 2024 (at 16:24). With the IPO price of ₹1,960 per share, Hyundai share price is expected to list at 7.4% gains.

For all the insights on the Hyundai Motor India IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App and open the demat account now.

Hyundai Motor India IPO Contact Information

For inquiries related to the Hyundai Motor India IPO details, you can contact at the following places:

Registered Office Address: Plot No. H-1, SIPCOT Industrial Park, Irrungattukottai, Sriperumbudur Taluk, Kancheepuram District 602 105, Tamil Nadu, India
Phone: +91 44 6710 5135
Email: complianceofficer@hmil.net
Company Website: https://www.hyundai.com/in/en

Hyundai Motor India IPO Registrar Details:

Registrar Name: KFin Technologies Limited
Phone: +91 40 6716 2222
Email: hmil.ipo@kfintech.com

FAQs

1. Is the Hyundai IPO coming?

Hyundai Motor India IPO is coming this October. The bidding will open on October 15, 2024 and it will close on October 17, 2024.

2. Is Hyundai listed in the Indian stock market?

Hyundai Motors India is currently not listed in the Indian stock market. It will be listed on October 22, 2024 on NSE and BSE.

3. What is the price band of Hyundai IPO in India?

Hyundai IPO price band could be between ₹1,865 and ₹1,960 per share.

Reference

https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=3&ssid=15&smid=11

Author: All Content is verified by SMC Global Securities.