Hyundai Motor India Limited IPO (Hyundai Motor IPO) Detail Review –
Hyundai Motor India Limited IPO (Hyundai Motor IPO) Detail is set to open from 15th Oct 2024 to 17th Oct 2024. In this article we will analyze the financials , strengths and weaknesses of the Hyundai Motor India Limited IPO (Hyundai Motor IPO). Keep scrolling below to read more!
Hyundai Motor India Limited IPO (Hyundai Motor IPO) Overview –
Established in 1996, Hyundai Motor India Limited is a part of the Hyundai Motor Group, which is the third largest auto original equipment manufacturer (“OEM”) in the world based on passenger vehicle sales.
The company manufactures and sells reliable, feature-rich, and innovative four-wheeler passenger vehicles backed by the latest technology. The company also manufactures parts such as transmissions and engines.
The company provides mobility solutions, operating a network of 1,366 sales points and 1,550 service points across India.
As of March 31, 2024, the company has sold nearly 12 million passenger vehicles in India and through exports.
The company manufactures and sells four-wheeler passenger vehicles, including models such as sedans, hatchbacks, SUVs, and electric vehicles (EVs).
The company’s models include the Grand i10 NIOS, i20, i20 N Line, AURA, Elantra, Venue, Venue N Line, Verna, Creta, Creta N Line, Alcazar, Tucson, and the all-electric SUV Ioniq 5.
As of December 31, 2023, the company had partnered with 363 dealer companies for distribution and sales in India.
HMIL’s manufacturing plant is situated near Chennai can produce its full range of vehicle models. The company exports its products to Africa, the Middle East, Bangladesh, Nepal, Bhutan, and Sri Lanka.
Hyundai Motor India Limited IPO (Hyundai Motor IPO) Synopsis-
Hyundai Motor India Limited IPO (Hyundai Motor IPO) is set to be open from 15th Oct 2024 to 17th Oct 2024, offering offer for sale of 14.22 crore shares aggregating to Rs 27870.16 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Tuesday, October 22, 2024.
The total issue size of this IPO amounts to Rs. 27870.16 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 15th Oct 2024 |
| Closing Date | 17th Oct 2024 |
| Lot Size | 7 Shares |
| Face Value | Rs 10 |
| IPO Size | Rs. 27870.16 Cr |
| Fresh Issue | Approx ₹[.] Cr |
| IPO Price Range | Rs. 1865 – 1960 |
| Min. Investment | Rs. 13,720 |
| Offer for Sale (OFS) | Rs. 27870.16 Cr |
| Employee Discount | Rs 186 per share |
| Basis of Allotment | 18th Oct 2024 |
| Refunds | 21st Oct 2024 |
| Listing Date | 22nd Oct 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Hyundai Motor India Limited IPO (Hyundai Motor IPO) Market Lot
Hyundai Motor India Limited IPO (Hyundai Motor IPO) minimum market lot is 7 shares with ₹13,720 application amount. The retail investors can apply up to 14 lots with 98 shares or ₹192,080 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 7 | ₹14,300 |
| Retail Maximum | 14 | 98 | ₹192,080 |
| S-HNI Minimum | 15 | 105 | ₹205,800 |
| S-HNI Maximum | 72 | 504 | ₹987,840 |
| B-HNI Minimum | 73 | 511 | ₹1,001,560 |
Hyundai Motor India Limited IPO (Hyundai Motor IPO) Book Running 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
Hyundai Motor India Limited IPO (Hyundai Motor IPO) Registrar to the offer –
The registrar for the Hyundai Motor India Limited IPO (Hyundai Motor IPO) is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- The company will not receive any proceeds from the Offer (the “Offer Proceeds”) and all the Offer Proceeds will be received by the Promoter Selling Shareholder after the deduction of Offer related expenses and relevant taxes thereon, to be borne by the Promoter Selling Shareholder.
Key Performance Indicator –
The market capitalization of Hyundai Motor India Limited is Rs 159258.06 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | NA |
| ROCE: | 62.90% |
| EBITDA Margin: | 13.08% |
| PAT Margin: | 8.50% |
| Debt to equity ratio: | 0.07 |
| Earning Per Share (EPS): | ₹74.58 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 56.82% |
| Net Asset Value (NAV): | ₹131.26 |
Financial Status –
Hyundai Motor India Limited’s revenue increased by 16% and profit after tax (PAT) rose by 29% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 31 March 2024.
The company’s total assets are Rs. 25370.24 crore.
The company’s total revenue is Rs. 17,567.98 crore.
The company’s PAT is Rs. 1,489.65 crore.
The company’s net worth is Rs. 12,148.71 crore
| Particulars(in Rs. Crores) | 30 June 2024 | 31 MAR 24 | 31 MAR 23 | 31 MAR 22 |
|---|---|---|---|---|
| Revenue From Operations | 17,567.98 | 71,302.33 | 61,436.64 | 47,966.05 |
| PAT | 1,489.65 | 6060.04 | 4709.25 | 2901.59 |
| Net Worth | 12,148.71 | 10,665.66 | 20,054.82 | 16,856.26 |
| Total Assets | 25,370.24 | 258.36 | 148.76 | 92.79 |
| Total Borrowings | 758.14 | 767.92 | 1,158.6 | 1,140.03 |
Evaluation of P/E Ratio :
The P/E Ratio of Hyundai Motor India Limited is 26.28
Comparative Analysis with Listed Peers :
In simple words, the P/E ratio of Hyundai Motor IPO (26.28x), compared with the industry’s average P/E of 23.57x, has an overvaluation (on a P/E Ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.
Peers of Hyundai Motor India Limited IPO (Hyundai Motor IPO) –
| Company Name | EPS | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|
| Hyundai Motor India Limited | 74.58 | 131.26 | 56.82 | 14.96 | Consolidated | |
| Maruti Suzuki India Ltd. | 429.01 | 2,723.77 | 29.38 | 15.75 | 4.63 | Consolidated |
| Tata Motors Ltd. | 81.96 | 221.67 | 11.36 | 36.98 | 4.21 | Consolidated |
| Mahindra & Mahindra Ltd. | 101.14 | 594.08 | 29.96 | 17.02 | 5.08 | Consolidated |
Hyundai Motor India Limited IPO (Hyundai Motor IPO) 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 centres 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.
Hyundai Motor India Limited IPO (Hyundai Motor IPO) Weakness –
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.
Hyundai Motor India Limited IPO (Hyundai Motor IPO) Status
Hyundai Motor India Limited IPO (Hyundai Motor IPO) allotment status will be available on KFin Technologies Limited.
Click on Link KFin Technologies Limited to get allotment status.
Hyundai Motor India Limited IPO (Hyundai Motor IPO) GMP Today –
IPO’s last GMP is ₹65, last updated 14th Oct 2024. With the price band of 1960.00, IPO’s estimated listing price is ₹2025(cap price + today’s GMP). The expected percentage gain/loss per share is 3.32%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
