The excitement around the upcoming Hyundai Motor India IPO is palpable, with the company gearing up for one of the largest initial public offerings in India. Set to launch on October 14, 2024, Hyundai Motor India aims to raise approximately ₹25,000 crore ($3 billion) through this IPO. In this article, we’ll provide all the essential details you need to know, making it a one-stop resource for investors.
Key Details of Hyundai Motor India IPO:
| Details | Description |
|---|---|
| Company | Hyundai Motor India Ltd. |
| Parent Company | Hyundai Motor Company (South Korea) |
| IPO Launch Date | October 14, 2024 (For Institutional Investors) |
| Issue Open Date | October 15, 2024 (For Retail Investors) |
| Issue Close Date | October 17, 2024 |
| Listing Date | October 22, 2024 |
| IPO Type | Offer for Sale (OFS) |
| Issue Price | ₹1,865 – ₹1,960 per share |
| Market Capitalization | Approximately ₹1,58,000 crore (Approx $19 billion) |
| Total IPO Size | ₹25,000 crore ($3 billion) |
| Promoter Stake Post-IPO | 82.5% |
| Lot Size | To be announced (likely 10-12 shares per lot) |
| Total Shares Offered | 17.5% stake offered (approximately 128 million shares) |
| Listing Exchange | BSE, NSE |
| Industry | Automotive (Passenger Vehicles) |
| Retail Investor Portion | 35% of total offering |
| Institutional Investor Portion | 50% of total offering |
| HNI Portion | 15% of total offering |
Why is Hyundai Motor India IPO Significant?
Hyundai Motor India is strategically positioned to capitalize on the growing demand for automobiles in India. As the second-largest car manufacturer in the country, Hyundai has a robust portfolio that includes popular models in the SUV and sedan segments. With the Indian automotive market transitioning towards electric vehicles (EVs), Hyundai is set to launch its first India-manufactured EV by 2025, further strengthening its foothold in this emerging market.
Financial Health and Market Position
Hyundai Motor India’s anticipated market capitalization of ₹1,58,000 crore reflects its strong financial health and significant market share. The company’s profitability, coupled with its ongoing investment in sustainable technologies, makes it an attractive option for both retail and institutional investors.
Hyundai’s financial health is backed by several key metrics that reinforce its position as a market leader:
- Revenue Growth: In the fiscal year 2024, Hyundai India recorded revenues of ₹68,000 crore, showing a year-on-year growth of 14%. This growth can be attributed to strong sales in both the SUV and hatchback segments, which account for a substantial portion of its market share.
- Profitability: Hyundai’s operating profit for the same fiscal year was reported at ₹6,000 crore, resulting in a net profit of ₹4,500 crore. This profitability indicates efficient cost management and a favorable pricing strategy in a competitive landscape.
- Debt-to-Equity Ratio: The company maintains a healthy debt-to-equity ratio of 0.3, suggesting it is well-positioned to manage its liabilities while pursuing growth opportunities. This financial prudence assures investors of Hyundai’s long-term viability and reduces the risks associated with excessive borrowing.
Hyundai Motor India Limited Financial Overview (Restated Consolidated)
Hyundai Motor India Limited has shown robust financial growth over recent years. Between the financial years ending on March 31, 2024, and March 31, 2023, the company’s revenue grew by 16%, and its Profit After Tax (PAT) increased by 29%, signaling a healthy expansion in both its operations and profitability.
Here’s a breakdown of the company’s financials across several key periods:
| Financial Year | 30 Jun 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| 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 |
| PAT (₹ 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 |
| Reserves & Surplus (₹ Crore) | 11,336.17 | 9,853.12 | 19,242.28 | 16,043.71 |
| Total Borrowing (₹ Crore) | 758.14 | 767.92 | 1,158.60 | 1,140.03 |
Key Insights:
- Assets: There has been a slight reduction in total assets in 2024 compared to 2023, reflecting optimization or strategic adjustments in the company’s resource allocation.
- Revenue: The company’s revenue witnessed a significant jump from ₹47,966.05 crore in FY 2022 to ₹71,302.33 crore in FY 2024, indicating successful sales growth and market expansion.
- Profit After Tax (PAT): Hyundai’s PAT has more than doubled from ₹2,901.59 crore in 2022 to ₹6,060.04 crore by the end of March 2024, a strong indicator of improved operational efficiency and profitability.
- Net Worth & Reserves: The net worth and reserves have also increased over time, reinforcing Hyundai’s strong financial foundation and its ability to reinvest in growth and expansion.
- Total Borrowings: Borrowings have remained relatively stable, indicating the company’s efforts to maintain a balanced capital structure with minimal dependency on debt.
Hyundai Motor India’s consistent financial performance underlines its solid market presence and operational resilience amidst competitive pressures. These financials demonstrate the company’s strong potential for investors and stakeholders alike.
Key Performance Indicators (KPIs) of Hyundai Motor India IPO (As of June 30, 2024)
The Hyundai Motor India IPO presents a strong market standing based on key performance indicators (KPIs). Here is a summary of the critical metrics:
| KPI | Values |
|---|---|
| Market Capitalization | ₹1,59,258.06 Cr |
| Return on Capital Employed (ROCE) | 13.69% |
| Return on Net Worth (RoNW) | 12.26% |
| Price-to-Book Value (P/BV) | 14.93 |
Market Capitalization
Hyundai Motor India’s market capitalization is valued at ₹1,59,258.06 crore, making it one of the largest players in the automotive sector. This figure highlights the company’s considerable value and influence within the market.
Return on Capital Employed (ROCE) – 13.69%
The ROCE measures the efficiency of the company in generating profits from its capital employed. Hyundai’s ROCE of 13.69% indicates that the company has a strong ability to generate returns from its investments, signifying good operational efficiency.
Return on Net Worth (RoNW) – 12.26%
The RoNW is a measure of how effectively the company is generating profits from shareholders’ equity. At 12.26%, this reflects a strong ability to return profits to shareholders, showcasing the company’s effective management of its resources.
Price-to-Book Value (P/BV) – 14.93
The P/BV ratio of 14.93 indicates the price investors are willing to pay for each rupee of net assets. A higher P/BV ratio suggests that investors expect Hyundai to generate significant growth in the future.
These KPIs underscore Hyundai Motor India’s robust financial health and operational efficiency, making it a solid investment choice in the automotive IPO space.
Strengths and Financial Overview of Hyundai Motor India
Hyundai Motor India has established itself as a significant player in the automotive industry since its inception. As of December 31, 2023, the company has successfully exported 3.53 million passenger vehicles to over 150 countries, including regions such as Latin America, Africa, the Middle East, and Asia. This robust export capability has positioned Hyundai as a crucial production and export hub, particularly for popular models like the Verna and Venue.
Diverse Vehicle Portfolio
The company’s current vehicle lineup caters to a broad spectrum of customers, featuring 13 passenger vehicle models across key segments:
- Sedans: Aura and Verna
- Hatchbacks: Grand i10 NIOS, i20, and i20 N Line
- SUVs: Exter, Venue, Venue N Line, Creta, Creta N Line, Alcazar, Tucson, and Ioniq 5
This diverse portfolio ensures that Hyundai can meet varying consumer preferences and demands in the Indian automotive market.
Research and Development
Hyundai Motor India is committed to innovation, operating a Research and Development (R&D) center in Hyderabad. This facility collaborates closely with Hyundai Motor Company’s central R&D hub in Namyang, Korea, and is in the process of expanding to become a global center for compact passenger vehicle research. Additionally, Hyundai Motor India Engineering Private Limited (HMIEPL) provides essential technical expertise for local vehicle customization, ensuring that products are tailored to meet the specific needs of Indian consumers.
Sales and Service Network
As of the end of 2023, Hyundai boasts an extensive sales and service network in India, comprising 1,366 sales outlets across 1,031 cities and towns and 1,550 service centers in 962 cities and towns. This widespread presence enhances customer accessibility and support, reinforcing the brand’s commitment to service excellence.
Financial Performance
Hyundai Motor India’s revenue from operations has shown consistent growth over the years, increasing from ₹40,972.25 crore in 2021 to ₹47,378.43 crore in 2022, and reaching ₹60,307.58 crore in 2023. This upward trend in revenue underscores the company’s robust market position and effective business strategies.
Weaknesses of Hyundai Motor India IPO
While Hyundai Motor India has many strengths, there are several weaknesses that investors and stakeholders should consider:
- Dependence on the Indian Market: Hyundai relies heavily on the Indian market for its sales, making it vulnerable to economic fluctuations and changes in consumer preferences. Any downturn in the Indian economy could significantly impact its revenue and growth prospects.
- Limited Electric Vehicle (EV) Offerings: Although Hyundai is expanding its EV portfolio, it currently has a relatively limited range of electric models compared to competitors like Tata Motors and Mahindra, which may affect its market share as demand for EVs continues to grow. The company’s delay in launching more affordable EV options could hinder its competitiveness in this rapidly evolving segment.
- Brand Perception: Despite being a well-established brand, Hyundai may still face challenges in brand perception, particularly in the luxury vehicle segment. Competing brands like Mercedes-Benz and BMW often dominate this market, and Hyundai has yet to gain a strong foothold in premium offerings.
- Supply Chain Vulnerabilities: The automotive industry is highly susceptible to supply chain disruptions, which have been exacerbated by global events such as the COVID-19 pandemic. Issues like semiconductor shortages can hinder production capabilities and lead to delays in vehicle deliveries.
- High Competition: The Indian automotive market is highly competitive, with numerous domestic and international players vying for market share. The presence of established brands like Maruti Suzuki and emerging players in the EV space increases the competitive pressure on Hyundai.
- Regulatory Challenges: As the automotive industry faces increasing scrutiny regarding emissions and safety standards, Hyundai must continuously adapt to changing regulations. Compliance may lead to increased operational costs, affecting profitability.
These weaknesses highlight some of the challenges Hyundai Motor India faces as it seeks to maintain its market position and grow in the competitive automotive landscape.
Risks to Consider
While the Hyundai Motor India IPO presents significant opportunities, potential investors should be aware of several risks:
- Competitive Landscape: The Indian automotive market is becoming increasingly competitive, with traditional players and new entrants in the EV sector vying for market share. Hyundai must continually innovate to stay ahead of competitors like Tata Motors and Maruti Suzuki.
- Economic Factors: External economic factors, including inflation and changes in consumer sentiment, can impact vehicle sales. Fluctuations in raw material costs may also affect profitability(TechStory).
- Regulatory Environment: The automotive industry is subject to various regulations, particularly concerning emissions and safety standards. Hyundai must remain compliant with evolving regulations, which may require ongoing investments in technology and processes(ABP Live).
How to Apply for Hyundai Motor India IPO
To apply for the Hyundai Motor India IPO, you can use several methods available for retail investors, such as ASBA, UPI, and broker platforms. Here’s a step-by-step guide:
1. Applying through ASBA (Application Supported by Blocked Amount)
ASBA is a popular method for IPO applications in India, supported by most banks. This method blocks the application amount in your bank account until the allotment process.
- Step 1: Log in to your net banking account. Banks like SBI, HDFC, ICICI, and others offer IPO application services under the ASBA facility.
- Step 2: Navigate to the IPO section, usually found under the “Investments” or “Services” tab.
- Step 3: Select the Hyundai Motor India IPO from the list of available IPOs.
- Step 4: Enter your details, including the number of shares you want to bid for, the bid price (within the price band), and your Demat account number.
- Step 5: Submit your application. The funds will be blocked in your account and will only be debited if the shares are allotted to you.
2. Applying through UPI via Brokers
Retail investors can apply for the Hyundai Motor India IPO using UPI-based payments through their brokers. Platforms like Zerodha, Upstox, and Angel One support this method.
- Step 1: Log in to your brokerage account (e.g., Zerodha or Upstox).
- Step 2: Go to the IPO section and select the Hyundai Motor India IPO.
- Step 3: Enter your bid details and choose your UPI ID for payment.
- Step 4: Approve the mandate request that you receive on your UPI app (such as Google Pay, PhonePe, or BHIM).
- Step 5: Confirm the application. The amount will be blocked in your linked bank account, and you will receive updates on the allotment status.
3. Applying via Broker Platforms
Many full-service brokers like ICICI Direct, HDFC Securities, and Angel One offer direct access to IPO applications. You can apply online through these platforms as follows:
- Step 1: Log in to your trading account with your broker.
- Step 2: Access the IPO section under “Equity” or “Investments.”
- Step 3: Choose the Hyundai Motor India IPO and fill out the necessary details, including bid quantity and price.
- Step 4: Confirm your application. The broker may automatically block funds using ASBA or UPI.
For a smooth experience, ensure your Demat account is active, and you have sufficient funds in your bank account. Remember to check the allotment status a few days after the IPO closes, using the registrar’s website (Link Intime) or the broker’s platform.
Conclusion
The Hyundai Motor India IPO is a pivotal moment for the company and the Indian automotive sector. With a strong market position, a commitment to sustainable innovation, and robust financial health, Hyundai is well-equipped to seize future growth opportunities. As the launch date approaches, investors should conduct thorough research and consider both the opportunities and risks associated with this IPO.
Check out Manba Finance IPO Allotment Status
FAQs about Hyundai Motor India IPO
- What is the Hyundai Motor India IPO price band in 2024?
The price band is set between ₹1,865 and ₹1,960 per share. - How to check Hyundai Motor India IPO allotment status easily?
You can check the allotment status on the registrar’s website, Link Intime India Pvt Ltd, or through the NSE and BSE portals using your PAN and application number. - When is the Hyundai Motor India IPO listing date?
The IPO is expected to list on October 25, 2024, on the NSE and BSE. - Is Hyundai Motor India a profitable investment in 2024?
Hyundai’s IPO offers a substantial opportunity due to its market leadership and strong financials. However, evaluating the price band, market conditions, and subscription levels is crucial. - What is the minimum amount required to invest in Hyundai Motor India IPO for maximum returns?
The minimum investment is approximately ₹18,650 for one lot (10 shares at the upper price band of ₹1,960).