Hyundai Motor India, a prominent subsidiary of the globally renowned Hyundai Motor Group, has announced its plans to launch an Initial Public Offering (IPO) worth approximately ₹25,000 crores in 2024.
This move marks a significant milestone for the company as it seeks to expand its market presence and strengthen its financial position.
IPO Details:
The Hyundai Motor India IPO will comprise of an offer for sale of up to 142,194,700 equity shares, each priced at ₹10.
The IPO allocation is strategically divided with 50% reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors.
Company Background:
Hyundai Motor India is a crucial part of Hyundai Motor Group, the third largest auto original equipment manufacturer (OEM) worldwided on passenger vehicle sales in CY2023, according to the CRISIL Report
Since Fiscal 2009, Hyundai Motor India has been the second largest auto OEM in the Indian passenger vehicle market by domestic sales volumes.
The company’s portfolio boasts 13 models spanning various segments including sedans, hatchbacks, sports-utility vehicles (SUVs), and battery electric vehicles (EVs).
Hyundai Motor India is also the largest exporter of passenger vehicles from India, a position it has held from Fiscal 2005 through the first 11 months of Fiscal 2024.
Financial Performance:
Hyundai Motor India has demonstrated robust financial performance over the past few years.
For the year 2023, the company reported a revenue of ₹61,436.64 crores, expenses of ₹55,091.07 crores, and a Profit After Tax (PAT) of ₹4,709.25 crores.
As of December 2023, the company recorded a revenue of ₹53,298.09 crores and a PAT of ₹4,382.87 crores.
Valuation Metrics:
- Earnings Per Share (EPS): ₹57.96 per equity share
- Return on Net Worth (RoNW): 23.48%
- Net Asset Value (NAV): ₹246.82 per equity share
Lead Managers and Registrar:
The IPO is being managed by a consortium of leading financial institutions, including 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, and Morgan Stanley India Company Private Limited.
KFin Technologies Limited is the registrar for the IPO.
Conclusion:
Hyundai Motor India’s IPO is poised to be one of the largest in the Indian automotive sector, reflecting the company’s strong market position and robust financial health.
The precise dates and price band for the IPO will be announced in due course. Stay tuned for further updates on this IPO.
