Hyundai Motor India, the country’s second-largest carmaker, has set the price band for its upcoming ₹27,870 crore Initial Public Offering (IPO) between ₹1,865 and ₹1,960 per share. The IPO will hit the market on October 15, 2024, and represents an important milestone for the Indian unit of South Korea’s Hyundai Motor Company. With a valuation of ₹1.59 lakh crore at the upper price band, this IPO marks one of the largest listings in the Indian automotive sector since Maruti Suzuki in 2003.
IPO Structure and Stakeholding
The Hyundai Motor India IPO is an entirely offer-for-sale (OFS) of 14.2 crore equity shares by the promoter, Hyundai Motor Company, with no fresh issue of shares. This means that the proceeds from the sale will go to the parent company, excluding the cost of the offer. After the issue, Hyundai Motor Company will retain an 82.5 percent stake in its Indian subsidiary.
Investor Opportunities
Retail investors can participate by placing bids starting with a minimum of seven shares, amounting to ₹13,720. The maximum investment allowed for retail investors is ₹1,92,080 for 14 lots of 98 shares, as per regulatory norms that cap retail investment at ₹2 lakh. Institutional investors have the opportunity to subscribe to the anchor book on October 14, 2024. The offer closes on October 17.
Hyundai’s Market Position in India
Hyundai Motor India, which stands next to Maruti Suzuki in the Indian passenger vehicle market, boasts a strong portfolio of 13 models ranging from sedans, hatchbacks, and SUVs to electric vehicles. The company’s quarterly sales reflect its dominant position, with 1.92 lakh units sold in the June 2024 quarter, up from 1.83 lakh in the corresponding period the previous year. Over fiscal year 2024, Hyundai recorded 7.77 lakh vehicle sales, marking a steady increase from 7.2 lakh units the previous year.
Financial Performance
On the financial front, Hyundai Motor India delivered a solid performance in the fiscal year ending March 2024, with a net profit of ₹6,060 crore, reflecting a 28.7 percent growth from the previous year. Revenues surged by 15.8 percent, reaching ₹69,829 crore for the year. During the first quarter of fiscal year 2025, revenue increased by 4.3 percent to ₹17,344.2 crore, while net profit grew by 12.1 percent to ₹1,489.6 crore compared to the same period in fiscal 2024.
Lead Managers for the IPO
The IPO is being managed by top merchant bankers, including Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India, and Morgan Stanley India Company. Their expertise will help facilitate what is expected to be a highly anticipated listing on the Indian stock market.
Given its market dominance and robust financial performance, Hyundai Motor India’s IPO is poised to capture strong investor interest, making it a key listing event in 2024.
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