About Hyundai Motor India
The Hyundai IPO could be the largest in Indian history!
Hyundai Motor India, a subsidiary of the Korea-based Hyundai Group, was established in 1996. The company specializes in manufacturing and selling a wide range of four-wheeler passenger vehicles, including sedans, hatchbacks, SUVs, and electric vehicles (EVs). Additionally, Hyundai produces key automotive parts such as transmissions and engines.
Currently, Hyundai’s lineup includes 13 models, ranging from sedans and hatchbacks to SUVs. In FY 2024, Hyundai captured approximately 15% of the domestic car market, securing the second position behind Maruti Suzuki. As of December 31, 2023, Hyundai Motor India boasted 1,366 sales outlets and 1,550 service centres across various cities and towns in India. This marked a significant expansion from March 31, 2021, when the company operated 1,167 sales outlets and 1,307 service centres.
Issue size
| Funds Raised in the IPO | Amount |
|---|---|
| Overall | ₹27,870.16 crores |
| Fresh Issue | – |
| Offer for sale | ₹27,870.16 crores |
Financials
| Financial Year Ended | March 2021 | March 2022 | March 2023 | March 2024 | June 2024 |
|---|---|---|---|---|---|
| Total Assets | 26730.57 | 28358.06 | 34573.34 | 26349.25 | 25370.24 |
| Revenue | 41404.65 | 47966.05 | 61436.64 | 71302.33 | 17567.98 |
| Profit After Tax | 1881.97 | 2901.59 | 4709.25 | 6060.04 | 1489.65 |
*All figures are in ₹ Crores
Important valuation metrics
| Market capitalization at issue price | ₹ 159258.06 crore |
|---|---|
| Price to earnings ratio | 27 times |
| EPS | 74.58 |
Strengths
- World’s third-largest auto Original Equipment Manufacturer (OEM) by passenger vehicle sales in 2023.
Sold nearly 12 million passenger vehicles in India and through exports from 1998 to March 31, 2024.
Second-largest auto Original Equipment Manufacturer (OEM) in the Indian market since 2009 (domestic sales volumes).
India’s largest exporter of passenger vehicles from 2005 to the first 11 months of 2024, with the highest cumulative exports for this period.
Risks
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Kia Corporation and Kia India Pvt Ltd owned by Hyundai also operate in a similar domain, which could lead to conflicts of interest.
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Centralized at the Chennai plant; disruptions, including at the upcoming Talegaon plant (operational in H2 Fiscal 2026), could impact operations and financial health.
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Significant revenue depends on SUV sales; declines in demand or production issues could negatively affect operations.
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Operations are subject to seasonal fluctuations, which impact sales and financial performance. Demand typically peaks in January-March and during the festive season, with slowdowns in April-July and December.
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Changes in tax laws could negatively affect business prospects, financial standing, operational outcomes, and cash flows.
Schedule of Hyundai Motor India
| Issue period | 15 - 17 Oct 2024 |
|---|---|
| Issue price | ₹1865 – ₹1960 |
| Minimum order quantity | 7 & multiples thereof |
| UPI mandate deadline | 17 Oct 2024 (5 PM) |
| Allotment finalization | 18 Oct 2024 |
| Refund initiation | 21 Oct 2024 |
| Share credit | 21 Oct 2024 |
| Listing date | 22 Oct 2024 |
| Mandate end date | 01 Nov 2024 |
| Lock-in end date for anchor investors (50%) | 17 Nov 2024 |
| Lock-in end date for anchor investors (remaining) | 16 Jan 2025 |