Hyundai Motor India Limited, part of the renowned Hyundai Motor Group, is launching its Initial Public Offering (IPO) this October. This IPO, set to be one of the biggest in India’s history, is expected to draw attention from both retail and institutional investors. If you’re curious about the Hyundai Motor IPO, its details, and whether it’s a good investment, we’ve broken down all the key information for you.
Section
Details
Company Overview
Hyundai Motor India Limited (HMIL), part of Hyundai Motor Group, is the second-largest automotive OEM in India, producing reliable passenger vehicles.
IPO Size
₹27,870.16 crores, entirely an Offer for Sale (OFS) of 14.22 crore shares.
Price Band
₹1,865 to ₹1,960 per share.
Lot Size
7 shares (minimum investment of ₹13,720 for retail investors).
IPO Dates
Opens: October 15, 2024; Closes: October 17, 2024; Allotment: October 18, 2024; Listing Date: October 22, 2024.
Reservation Categories
QIB: Up to 50%; Retail: At least 35%; NII: Not less than 15%.
Financial Performance
Revenue increased by 16%, PAT rose by 29% (FY 2024 vs. FY 2023).
Promoter Holding
Pre-issue: 100%; Post-issue: 82.50%.
Key Strengths
Strong brand reputation, consistent financial growth, significant IPO size, and robust demand from anchor investors.
Investment Recommendation
Analysts recommend it as a medium to long-term investment due to strong growth prospects and established market position.
What is Hyundai Motor India Limited?
Hyundai Motor India Limited (HMIL), incorporated in May 1996, is the second-largest automotive Original Equipment Manufacturer (OEM) in India. A subsidiary of Hyundai Motor Company (HMC) from Korea, it is well-known for producing reliable, feature-rich, and innovative passenger vehicles. HMIL’s product lineup includes sedans, hatchbacks, SUVs, and electric vehicles (EVs), with popular models like the Grand i10 NIOS, Creta, and the electric Ioniq 5.
HMIL has sold nearly 12 million vehicles in India and exports to several countries, including Africa and the Middle East. The company operates through a vast network of 1,366 sales points and 1,550 service locations across India.
The entire IPO is an Offer for Sale (OFS) by the promoter, Hyundai Motor Company, and no fresh shares will be issued.
Hyundai Motor IPO Subscription Details
Reservation Categories:
Qualified Institutional Buyers (QIB): Up to 50% of the net issue
Non-Institutional Investors (NII or HNI): Not less than 15% of the net issue
Retail Investors: At least 35% of the net issue
There’s also a reservation of up to 7,78,400 shares for employees, with a discounted price of ₹186 per share.
Lot Size and Investment:
The minimum investment required by retail investors is ₹13,720 for one lot (7 shares). Higher tiers, such as Small High Net-worth Individuals (sNII) and Big High Net-worth Individuals (bNII), have different requirements:
Investor Type
Lot Size
Shares
Investment Amount
Retail Investors
1 to 14 lots
7 to 98
₹13,720 to ₹192,080
sNII (Small HNI)
15 to 72 lots
105 to 504
₹205,800 to ₹987,840
bNII (Big HNI)
73 lots
511
₹1,001,560
Anchor Investors:
Anchor investors have already committed to invest ₹8,315.28 crore, with their bidding on October 14, 2024. The lock-in period for 50% of anchor investor shares will end on November 17, 2024, while the rest will be unlocked on January 16, 2025.
Hyundai Motor IPO Financials
The company has shown consistent growth in both revenue and profit over the years. The table below provides a glimpse of HMIL’s financial performance:
Metric
30 June 2024
31 March 2024
31 March 2023
31 March 2022
Total Assets (₹ Crore)
25,370.24
26,349.25
34,573.34
28,358.06
Revenue (₹ Crore)
17,567.98
71,302.33
61,436.64
47,966.05
Profit After Tax (₹ Crore)
1,489.65
6,060.04
4,709.25
2,901.59
Net Worth (₹ Crore)
12,148.71
10,665.66
20,054.82
16,856.26
Hyundai Motor India has steadily improved its profitability, with its profit after tax (PAT) increasing by 29% in FY 2024 compared to FY 2023.
Hyundai Motor IPO Promoter Holding
Before the IPO, Hyundai Motor Company holds 100% of the shares. Post-IPO, the promoter’s shareholding will be reduced to 82.50%, as 14.22 crore shares are being sold via the Offer for Sale (OFS).
Hyundai Motor IPO Review: Is It a Good Investment?
Hyundai Motor India Limited’s IPO has caught the attention of investors because of its strong financials, large market share, and long-standing reputation in the automotive industry. Here’s why some investors see it as a potential opportunity:
Strong Global Presence: As part of the Hyundai Motor Group, the third-largest auto OEM globally, HMIL benefits from a strong brand reputation and technological expertise.
Steady Growth: HMIL has consistently posted healthy revenue and profit growth over the years. With expansion plans in place, the future looks bright for the company.
Biggest IPO in India: With ₹27,870.16 crore at stake, this IPO is the largest ever in India’s history, increasing its visibility and potential allotment across investor categories.
High Demand: Anchor investors have already committed over ₹8,000 crore, showing strong institutional interest.
Long-Term Bet: Analysts recommend the Hyundai Motor IPO as a medium to long-term investment due to the company’s solid business foundation and growth prospects.
FAQs About Hyundai Motor IPO
1. When does the Hyundai Motor IPO open for subscription?
The Hyundai Motor IPO will be open for subscription from October 15, 2024, to October 17, 2024.
2. What is the price band for the Hyundai Motor IPO?
The price band for the Hyundai Motor IPO is set between ₹1,865 and ₹1,960 per share.
3. How many shares can I apply for as a retail investor?
As a retail investor, you can apply for a minimum of 7 shares and up to 98 shares, with a maximum investment of ₹192,080.
4. When will the shares be listed on the stock exchange?
The Hyundai Motor IPO shares are expected to be listed on BSE and NSE on October 22, 2024.
5. Who are the lead managers of the Hyundai Motor IPO?
The book running lead managers for the IPO are Kotak Mahindra Capital, Citigroup Global Markets India, HSBC Securities, J.P. Morgan India, and Morgan Stanley India.
