Hyundai Motor India IPO Price: ₹1,865 to ₹1,960 per share
IPO Dates: 15 October – 17 October 2024
Company Overview
Hyundai Motor India Limited (HMIL), established in May 1996, is a key subsidiary of the Hyundai Motor Group, a global automotive leader headquartered in South Korea. Hyundai Motor Group has long been recognized for its innovation, technological advancements, and global reach in the automotive industry.
Hyundai Motor India significantly enhances Hyundai’s presence in international markets, particularly in India, where the company has made substantial investments in production capacity, research, and development. Over the years, HMIL has built a strong reputation for producing reliable, durable vehicles with features and cutting-edge technology.
Product Line and Manufacturing
The company manufactures and sells various passenger vehicles, including sedans, hatchbacks, sports-utility vehicles (SUVs), and electric vehicles (EVs). Their models include popular vehicles such as the Grand i10 NIOS, Creta, Verna, and the all-electric IONIQ 5. In addition to vehicles, HMIL also produces key automotive parts like transmissions and engines.
HMIL’s manufacturing plant near Chennai, Tamil Nadu, was Hyundai’s first integrated plant outside Korea and has an annual production capacity of 824,000 units. With the upcoming expansion through the Talegaon manufacturing plant, the total capacity is set to increase to 1,074,000 units.
Sales and Service Network
As of June 2024, HMIL operates through 1,377 sales outlets across 1,036 cities in India and 1,561 service centers in 957 cities. The company exports to over 150 countries, primarily serving markets in Africa, the Middle East, Latin America, and South Asia. It has sold nearly 12 million passenger vehicles cumulatively in India and through exports.
Technological Advancements
As a key part of the Hyundai Motor Group, HMIL benefits from access to cutting-edge technologies. This includes Hyundai Autoever’s smart factory platform that enables customized production through automated processes. The company has also digitized its customer and dealer experiences through platforms like the “myHyundai” app for customers and “H-Smart” for dealers.
Environmental and Social Responsibility
HMIL is committed to sustainability, with 63% of its total energy at the Chennai plant sourced from renewable sources as of 2024. The company also actively participates in community and environmental initiatives, including EV development and green hydrogen energy research in collaboration with the Government of Tamil Nadu and IIT Madras.
Competitive Strength
- 2nd Largest Auto OEM in India: HMIL has been the second-largest auto OEM in India since 2009 and continues to hold this position in terms of domestic sales volumes.
- Largest Exporter of Passenger Vehicles: HMIL is India’s largest exporter of passenger vehicles, exporting to over 150 countries across Latin America, Africa, the Middle East, and South Asia.
- Diverse Portfolio: The company boasts a diverse range of passenger vehicles, covering multiple segments such as sedans, hatchbacks, SUVs, and EVs. Their lineup includes models that offer various powertrains, including petrol, diesel, compressed natural gas (CNG), and electric.
- Timely Innovation: Leveraging Hyundai’s global resources, HMIL is able to identify emerging market trends early and respond with innovative technologies and models that meet evolving customer needs in India.
- Pan-India Sales and After-Sales Network: With a vast network of dealers and service centers, HMIL provides extensive coverage across urban and rural India. Its large sales and after-sales network ensures customer satisfaction across all regions.
- Digitization Across the Value Chain: HMIL has introduced comprehensive digital solutions to enhance customer experience, such as the “myHyundai” app for vehicle purchases and service scheduling, and digital platforms for dealer management.
- Flexible Manufacturing: The company’s highly automated manufacturing plants in Chennai use cutting-edge technology to produce a wide variety of models with high flexibility and customization.
- Experienced Leadership: HMIL’s management team has a track record of delivering strong growth and profitability, supported by its efficient operations, strategic market positioning, and consistent financial returns.
Bidding Starts In
Hyundai Motor India IPO Specifics:
| IPO Date | October 15, 2024 to October 17, 2024 |
| Listing Date | Tuesday, October 22, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹1865 to ₹1960 per share |
| Lot Size | 7 Shares |
| Total Issue Size | 142,194,700 shares (aggregating up to ₹27,870.16 Cr) |
| Offer For Sale | 142,194,700 shares (aggregating up to ₹27,870.16 Cr) |
| Employee Discount | ₹186 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 812,541,100 |
| Share holding post issue | 812,541,100 |
Hyundai Motor India IPO Timetable (Important Dates)
| IPO Open Date | Tuesday, October 15, 2024 |
| IPO Close Date | Thursday, October 17, 2024 |
| Basis of Allotment | Friday, October 18, 2024 |
| Initiation of Refunds | Monday, October 21, 2024 |
| Credit of Shares to Demat | Monday, October 21, 2024 |
| Listing Date | Tuesday, October 22, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 17 , 2024 |
Hyundai Motor India IPO Lot Size
Bidders have the opportunity to bid for a minimum of 7 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| 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 Reservation
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Hyundai Motor India Limited IPO Financial Information
Hyundai Motor India Limited witnessed a 16% growth in revenue and a 29% increase in profit after tax (PAT) from the financial year ending on March 31, 2024, compared to March 31, 2023.
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | 30 June 2024 |
|---|---|---|---|---|
| Assets | 28358.06 | 34573.34 | 26349.25 | 25370.24 |
| Revenue | 47966.05 | 61436.64 | 71302.33 | 17567.98 |
| Profit After Tax | 2901.59 | 4709.25 | 6060.04 | 1489.65 |
| Net Worth | 16856.26 | 20054.82 | 10665.66 | 12148.71 |
| Reserves and Surplus | 16043.71 | 19242.28 | 9853.12 | 11336.17 |
| Total Borrowing | 1140.03 | 1158.6 | 767.92 | 758.14 |
Key Performance Indicator – Hyundai Motor India IPO
| KPI | Values |
|---|---|
| Market Cap | ₹ 1,59,258.06 Cr. |
| EPS | ₹74.58 |
| P/E (x) | 26.28 |
| ROCE | 13.69% |
| RoNW | 12.26% |
| P/BV | 14.93 |
Objects of the Issue:
The company will not be entitled to any proceeds from the Offer (referred to as the “Offer Proceeds”), with the Promoter Selling Shareholder set to receive all such proceeds post deduction of Offer-related expenses and applicable taxes, which will be the responsibility of the Promoter Selling Shareholder.
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
