Hyundai Motor India IPO is the biggest IPO by Issue Size to date in Indian Equity Market. The Issue Size is ₹27870.16 CR. The previous biggest IPO by Size was Life Insurance Corporation of India(LIC) with an Issue Size of ₹21008.48 CR which got listed on 17th May 2022.
| IPO Details | |
|---|---|
|
Issue Size |
₹27870.16 CR |
|
IPO Dates |
15th Oct. 2024 - 17th Oct. 2024 |
|
Face Value |
₹10 |
|
Offer for Sale |
Up to 142,194,700 Equity Shares ( aggregating up to ₹27,870.16 Cr) |
|
Price Range |
₹1,865 - ₹1,960 |
|
Lot Size |
7 |
|
Minimum Investment |
₹13,055 |
Hyundai Motor India IPO Timelines Schedule
| IPO Timelines | |
|---|---|
|
Bidding Start Date |
Tuesday, 15th October 2024 |
|
Bidding End Date |
Thursday, 17th Oct. 2024 |
|
UPI Mandate confirmation Deadline |
5 PM, Thursday, 17th October 2024 |
|
Allotment Finalization |
Friday, 18th Oct. 2024 |
|
Refund Initiation |
Monday, 21st Oct. 2024 |
|
Share Credit into Demat Account |
Monday, 21st Oct. 2024 |
|
Listing Date |
Tuesday, 22nd Oct. 2024 |
Hyundai Motor India IPO Shares Reservation
| Investor Category | Reservation Portion | |
|---|---|---|
|
Qualified Institutional Buyers (“QIBs”) |
Not more than 70,708,150 Equity Shares(50%) |
|
|
HNI(Bidders with application size between ₹ 2Lakhs and 10 Lakhs) |
7,070,815 Equity Shares (5%) |
|
|
HNI(Bidders with application size of more than ₹10 Lakhs) |
14,141,630 Equity Shares (10%) |
|
|
Retail Portion |
Not less than 49,495,705 Equity Shares (35%) |
|
Hyundai Motor India IPO Anchor Investor Portion
Anchor Investors are part of Qualified Institutional Buyers (“QIBs”). Out of the QIBs portion that is Not more than 70,708,150 Equity Shares(50%) Up to 42,424,890 Equity Shares are reserved for Anchor Investors which is around 30% of the total Issue Size.
The Lock-in End date for Anchor Investors for 50% of shares is 17th November 2024. For Remaining Shares Lock-in end date is 16th January 2025.
Hyundai Motor India IPO Discount for Employees
For Employees, there is a discount of ₹186 per share. The price range for Employees is ₹ 1679 – ₹ 1774 and employees can apply up to ₹2Lakh(102 shares).
Hyundai Motor India Financials
| Financials | March 2024 | March 2023 | March 2022 |
|---|---|---|---|
|
Revenue |
71,302.33 |
61,436.64 |
47,966.05 |
|
Total Assets |
26,349.25 |
34,573.34 |
28,358.06 |
|
Profit After Tax |
6,060.04 |
4,709.25 |
2,901.59 |
About Hyundai Motor India Business
- Hyundai Motor India primarily manufactures and sells four-wheeler passenger vehicles and parts, such as transmissions and engines in India and outside India. Currently, their vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs, and battery EVs.
- It is a part of the Hyundai Motor Group, the third largest auto original equipment manufacturer(“OEM”) in the world based on passenger vehicle sales in CY 2023.
- They have been the second largest auto OEM in the Indian passenger vehicles market since fiscal 2009(in terms of domestic sales volume).
- They have a track record of manufacturing and selling four-wheeler passenger vehicles that are reliable, safe, feature-rich, innovative, and backed by the latest technology.
- They have been India’s second largest exporter of passenger vehicles from April 1, 2021, through June 30, 2024. Since 1998 and up to June 30, 2024, they have cumulatively sold more than 12 million units of passenger vehicles in India and through exports.
Hyundai Motor India IPO Key Risks
- The company, along with one of its subsidiaries and its promoter, is involved in legal proceedings. An adverse outcome in any of these cases could harm the business. They face 5 criminal proceedings, 128 tax claims, and 970 pending civil litigations, with the sum involved totaling Rs 5,469.80 crore.
- Hyundai Motor India currently manufactures passenger vehicles and parts only at the Chennai manufacturing plant. Any disruption at this plant, or the Talegaon Manufacturing Plant once operational, could negatively affect the company’s operations, financial condition, and results.
- Two of the company’s, group companies, Kia Corporation and Kia India Private Limited, operate in a similar line of business. This may lead to conflicts of interest, potentially impacting Hyundai Motor India’s business.
- Their long-term competitiveness depends on the evolution of the EV market including any impact from a global shift in consumer preferences and government policies. Their failure to recognize these market trends and meet customer demands for EVs could adversely impact their operations.
- Talking about EVs their market share is barely 2%. Tata Motors’ share in the EV space is 70%. If the EV trend and demand keeps on continuing they will have to cater to the demand. They will have to generate demand for their parts. If they are not able to do so it will affect their operations.
EV Market Share in India
| Company | 2024 | 2023 | 2022 |
|---|---|---|---|
|
Tata Motors |
70.6% |
81.5% |
84.6% |
|
MG |
12.8% |
9.6% |
11.2% |
|
Mahindra |
6.7% |
1% |
0.8% |
|
Hyundai |
2% |
1.7% |
0.7% |
|
BYD |
2.0% |
2.3% |
0.2% |
|
Others |
5.9% |
3.9% |
2.5% |
Objective of the Hyundai Motor Issue
- The issue is 100% Offer for Sale. The company will not receive any proceeds from the offer for sale. The selling shareholders will receive the Net Proceeds from the Offer for Sale.
- The Promoter Hyundai Motor Company (HMC) is selling up to 142,194,700 equity shares.
- Apply for the IPO
