Hyundai Motor India IPO : Review, Valuation, Opening Date & GMP

Hyundai Motor India: Complete Overview

Hyundai Motor India Ltd.(HMIL) is a subsidiary of the Hyundai Motor Group, the world's third-largest auto original equipment manufacturer (OEM) based on passenger car sales in CY2023. According to the CRISIL Report, they have been the second largest automaker in the Indian passenger vehicle industry (in terms of domestic sales volumes) since Fiscal 2009. They have a track record of making and selling four-wheeler passenger vehicles that are reliable and feature-rich.

Between Fiscal Years 2019 and 2024, India's domestic PV sales volume increased at a 5% CAGR. This growth was despite the revenue reduction (at 10% CAGR) observed over the Fiscal Years 2019 to 2021.

In CY2023, they were among the top three contributors to HMC's global sales volumes, with their share rising from 15.48% in CY2018 to 18.19% in CY2023.

The company relies heavily on exports, which accounted for 23.66% of its total revenue from operations during the nine months ending December 31, 2023. This is the company's largest export contribution in the past three years.

The company is now gearing up for a successful IPO, which might be the largest public issue in the Indian primary market. The forthcoming IPO might surpass the record set by the Life Insurance Corporation (LIC) of India's $2.46 billion offering in May 2022, becoming the largest in the nation's record. This IPO is set for Rs.25000 crore public offering.

Dear readers today we are ready with details of this upcoming mega big IPO. The company has not informed about the IPO’s pricing. 

Let's see this IPO's offerings in detail below. 

 

 

Hyundai Motor India IPO Overview

Hyundai Motor India IPO is solely an offer for sale (OFS) of 142,194,700 equity shares by Hyundai Motor Company, with no fresh issuance component. The company will not get any Funds from the IPO because it is strictly an OFS. The automaker wants to offer retail investors 35% of the entire stock on OFS in this IPO. The Face Value is set at Rs.10 per Equity Share. The IPO will be listed on both BSE and NSE. The company has not disclosed the Price of Share and total issue size of this IPO in its DRHP. This offering represents 17.5% of its total holdings.

 If You want to apply for this IPO, Click Here to Open a Demat Account.

 

Company Financial

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2023.

• The company's revenue or turnover is over Rs.500 crore.

• The net worth of the company has increased by 18.89%.

• The company's EBITDA has decreased by 37.68%.

• The company's total assets have gone up by 21.63%.

• The company's liabilities have gained by 29.77%.

(Amount in Million)

 

Revenue Bifurcation

The following table shows the facts offered in various firm activities. Let's take a look at it to gain a better idea of the company's success.

(Amount in Million)

 

Geography-wise breakdown of Revenue from Operations

(Amount in Million)

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill the following:

• To enhance manufacturing capacity, invest in electric vehicle (EV) technologies and improve R&D facilities.
• A portion of the revenues will be utilized to pay down current debt, thereby improving the company's balance sheet.
• To increase its visibility and brand awareness in India by launching equity shares on the Indian stock exchange.
• The IPO aims to increase liquidity and build a public market for the shares.
• The remaining money will be used for general company purposes and future acquisitions.

 

 

Peers of Hyundai Motor India Limited

Evaluation

Each share’s price in the IPO is to be disclosed later in the upcoming months.

Evaluation of P/E Ratio

• The company’s P/E ratio is NA.
• Comparative Analysis with Listed Peers
• The average P/E Ratio of the industry is 75.89.

IPO's Strengths

• According to the CRISIL Report, the company has been the second-largest car OEM in the Indian passenger vehicle industry by domestic sales volumes since Fiscal 2009.

• The company has a diversified portfolio of passenger vehicles spanning powertrains and main passenger vehicle categories.

• Its current passenger car range caters to a varied consumer base, allowing it to provide "something for everyone". Currently, its portfolio includes 13 passenger vehicle models from all main passenger vehicle sectors, organized by body type.

•  It recognizes developing market trends promptly and delivers innovative passenger vehicles and technology to fulfill client demands in India.

• The company’s dealers offer a pan-India sales, distribution, and after-sales support network. As of December 31, 2023, it had 1,366 sales outlets across 1,031 cities and towns in India, as well as 1,550 service centers across 962 cities and towns in India as of March 31, 2021.

• It digitized its customers' and dealers' interactions with one another. Customers can communicate with them at any stage of the passenger vehicle purchasing process and obtain after-sales services via the "myHyundai" app and their website.

•  Flexible and automated manufacturing capabilities.

 

 

IPO’s Weaknesses 

• Price increases for parts and materials used in the company's operations could hurt its business and results.

• The company relies on a small number of suppliers for parts and materials. Any disruption in the availability of parts and materials could jeopardize its operations.

• The company's activities are dependent on its promoter, HMC. Any adverse change in the company's relationship with HMC and the Hyundai Motor Group's enterprises could harm its business, reputation, financial condition, and operating results.

• The Company, one of its subsidiaries, and its promoter are involved in outstanding legal procedures, and any bad decision in any of these proceedings may negatively harm its business, reputation, and financial Operational conditions and results.

• The company has entered into and may continue to enter into related party transactions with HMC and Hyundai Motor Group companies that may result in conflicts of interest, which could harm its operations.

• Two of its Group Companies, Kia Corporation, and Kia India Private Limited, are in the same line of business as it, which may result in a conflict of interest that could harm its business.

 

IPO GMP Today

The Latest GMP of Hyundai Motor India is not available yet.

 

Hyundai Motor India IPO timetable (Tentative)

The IPO’s detailed timetable will be informed by the SEBI later.

 

Hyundai Motor India IPO Details

Hyundai Motor India Education Services Ltd IPO with a face value of Rs.10 per share is set to start this year. The IPO will offer a total issue size of 142,194,700 equity shares with no fresh issues. The minimum lot size is 1 for retail investors and a maximum of 13.

 

Hyundai Motor India IPO Lot Details 

This IPO allows retail investors to invest in a minimum and maximum of 1 lot and 13 lots respectively, while for S-HNI investors, the minimum and maximum lots are 14 and 68 respectively.

 

 

Hyundai Motor India Reservation

 

Promoters and Management of Hyundai Motor India

• Hyundai Motor Company

 

Hyundai Motor India IPO Lead Managers

• Kotak Mahindra Capital Company Limited

• Citigroup Global Markets India Private Limited

• HSBC Securities and Capital Markets (India) Private Limited

• J.P. Morgan India Private Limited

• Morgan Stanley India Company Private Limited

 

 

Dividend Policy of Hyundai Motor India IPO

The company has paid dividends in the following Financial Years as shown in the table below.

Conclusion

The company has not declared some of its IPO important details like the price of each share. SEBI will in due time declare the timetable of this IPO. To achieve its goals, the company is currently launching an initial public offering to the general public. If successful this IPO might become the biggest IPO in the Indian history of the Stock Market.

We believe this blog would be very beneficial to you if you are looking for information related to this upcoming IPO. If the information and figures presented in this blog match your interest, you might be interested in reading our other related useful blogs on our website.

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Disclaimer: We do not recommend any type of buying or selling activity through this blog. Always consult your Financial advisor before investing. 

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