Hyundai Motor India’s long-awaited IPO is set to open on October 15, 2024, and promises to be the largest public issue in India, surpassing the previous record set by Life Insurance Corporation (LIC).
As one of the biggest initial public offerings in recent years, Hyundai aims to raise $3.3 billion from the sale of 14.22 crore shares via the offer for sale (OFS) route. Here’s everything you need to know about the Hyundai Motor India IPO.
Key Details About Hyundai Motor India IPO
1. IPO Dates
- Opening Date: October 15, 2024
- Closing Date: October 17, 2024
- Anchor Investors Date: October 14, 2024
- Listing Date: October 22, 2024 (Tentative)
2. Price Band
The price band for the Hyundai Motor India IPO has been set between ₹1,865 and ₹1,960 per share. The final price will be determined after the book-building process, which is expected to close on October 17.
3. Offer for Sale (OFS)
Hyundai Motor India’s IPO is entirely an OFS, involving the sale of 14.22 crore shares by the South Korean parent company Hyundai Motor. The company will not issue any new shares, and the proceeds from the IPO will go directly to the promoter.
4. Market Capitalization
Suppose the shares are priced at the upper limit of the range. In that case, Hyundai Motor India’s market valuation will reach a staggering $19 billion (₹15,954 crore), making it the most valuable auto manufacturer in India.
5. Lot Size
The minimum lot size for retail investors is seven shares, with an investment starting at ₹13,720. Bids can be made in multiples of seven shares.
Hyundai Motor India Financials
Financial Performance (FY2022-FY2024)
| Year | Revenue (₹ Crore) | Net Profit (₹ Crore) | Profit Margin (%) |
|---|---|---|---|
| 2022 | 32,488.34 | 4,382.87 | 13.5% |
| 2023 | 37,567.98 | 5,489.65 | 14.6% |
| 2024 (Q1) | 17,567.98 | 1,489.65 | 13.7% |
Hyundai Motor India’s strong financial performance underscores its leadership in the automotive industry. The company’s net profit for the first quarter of FY2024 was ₹1,489.65 crore, reflecting its solid position in the Indian passenger vehicle market.
Key Highlights and Risks
1. Key Strengths
- Market Leadership: Hyundai is the second-largest carmaker in India by sales, only behind Maruti Suzuki.
- Global Brand: Hyundai is part of the Hyundai-Kia group, the third-largest auto manufacturer globally.
- Electric Vehicles: Hyundai plans to expand its electric vehicle (EV) offerings in India, further increasing its market share.
2. Key Risks
- Dependence on Parent Company: Hyundai Motor India relies heavily on its South Korean parent for parts and materials.
- Price Sensitivity: Rising costs of raw materials could impact Hyundai’s margins and profitability.
Peer Comparison
Hyundai Motor India’s main competitors include Maruti Suzuki, Tata Motors, and Mahindra & Mahindra. Here’s a snapshot of how Hyundai compares:
| Company | P/E Ratio | Market Share (%) | Net Profit (₹ Crore) | Revenue (₹ Crore) |
|---|---|---|---|---|
| Maruti Suzuki | 17.93 | 42% | 6,258 | 42,486 |
| Tata Motors | 11.36 | 18% | 3,048 | 29,758 |
| Mahindra & Mahindra | 29.96 | 12% | 4,289 | 24,326 |
| Hyundai Motor India | 19.5 | 25% | 5,489 | 37,567.98 |
Conclusion
Market experts believe that Hyundai Motor India’s IPO presents a valuable opportunity for investors, especially given its solid financial performance, expanding market share, and ambitious EV plans.
With the company’s diversified product portfolio and strong brand, analysts are optimistic about its long-term growth potential.
Disclaimer
The above information is intended for educational purposes and does not constitute financial advice. Please consult a professional financial advisor before making investment decisions.