Incorporated in May 1996, Hyundai Motor India Limited (HMIL) is part of the globally renowned Hyundai Motor Group, which is the third-largest auto original equipment manufacturer (OEM) worldwide based on passenger vehicle sales. HMIL is known for producing reliable, feature-rich, and innovative four-wheeler passenger vehicles backed by the latest technology. The company’s product portfolio includes sedans, hatchbacks, SUVs, and electric vehicles (EVs), along with key components like transmissions and engines.
Core Business and Market Position
Hyundai Motor India is a prominent player in the Indian automobile industry, offering mobility solutions through a vast network of 1,366 sales points and 1,550 service points across the country. By March 31, 2024, HMIL had sold nearly 12 million passenger vehicles, including models like the Grand i10 NIOS, i20, Verna, Creta, and the all-electric SUV Ioniq 5. The company operates a state-of-the-art manufacturing plant near Chennai, producing vehicles for both domestic and international markets, including Africa, the Middle East, and South Asia.
Hyundai Motor India IPO Details and Objectives
The Hyundai Motor India IPO is designed to raise capital for various strategic objectives. The company plans to utilize the funds to expand its manufacturing capacity, invest in research and development, and meet working capital requirements.
Purpose of the IPO
The Hyundai Motor India IPO is a book-built issue valued at ₹27,870.16 crores, structured entirely as an offer for sale of 14.22 crore shares. The company itself will not receive any proceeds from this offering. Instead, all proceeds will go to the Promoter Selling Shareholder, after accounting for offer-related expenses and applicable taxes. The IPO will not be utilized for business expansion, but it provides an opportunity for existing shareholders to divest their holdings.
Expected Funds to be Raised
Hyundai Motor India's IPO aims to raise ₹27,870.16 crores through the offer for sale. As the proceeds will be directed to the Promoter Selling Shareholder, the company will not be using these funds for growth or operations.
Key Dates to Remember
IPO Open Date: Tuesday, October 15, 2024
IPO Close Date: Thursday, October 17, 2024
Basis of Allotment: Friday, October 18, 2024
Initiation of Refunds: Monday, October 21, 2024
Credit of Shares to Demat: Monday, October 21, 2024
Listing Date: Tuesday, October 22, 2024
Cut-off time for UPI mandate confirmation: 5 PM on October 17, 2024
Pricing and Lot Size of Hyundai Motor India IPO
IPO Date: October 15, 2024, to October 17, 2024
Face Value: ₹10 per share
Price Band: ₹1,865 to ₹1,960 per share
Lot Size: 7 shares
Total Issue Size: 142,194,700 shares, aggregating up to ₹27,870.16 crores
Offer for Sale: 142,194,700 shares of ₹10, aggregating up to ₹27,870.16 crores
Employee Discount: ₹186 per share
Issue Type: Book Built Issue IPO
Listing At: BSE and NSE
Pre-Issue Shareholding: 812,541,100 shares
Post-Issue Shareholding: 812,541,100 shares
Listing Date: Tuesday, October 22, 2024
How to Apply for the Hyundai Motor India IPO?
To apply for the Hyundai Motor India IPO, follow these simple steps:
For detailed steps, you can refer to your broker’s IPO application guide.
Financial Health and Performance
Assets:
Hyundai Motor India’s total assets have fluctuated over the years. As of June 30, 2024, the company reported assets worth ₹25,370.24 crores, which shows a slight decrease from ₹26,349.25 crores as of March 31, 2024. The highest asset value was recorded on March 31, 2023, at ₹34,573.34 crores, while in March 2022, it stood at ₹28,358.06 crores.
Revenue:
Hyundai’s revenue has shown significant growth over the years. For the quarter ending June 30, 2024, revenue was ₹17,567.98 crores. The total revenue for the financial year ending March 31, 2024, was ₹71,302.33 crores, up from ₹61,436.64 crores in FY 2023 and ₹47,966.05 crores in FY 2022.
Profit After Tax (PAT):
The company’s profit after tax increased steadily over the years. As of June 30, 2024, PAT stood at ₹1,489.65 crores. For FY 2024, PAT was ₹6,060.04 crores, a significant rise from ₹4,709.25 crores in FY 2023, and ₹2,901.59 crores in FY 2022.
Net Worth:
The company’s net worth as of June 30, 2024, is ₹12,148.71 crores. As of March 31, 2024, it was ₹10,665.66 crores. The highest net worth was recorded at ₹20,054.82 crores as of March 31, 2023, up from ₹16,856.26 crores in March 2022.
Reserves and Surplus:
Hyundai Motor India’s reserves and surplus were ₹11,336.17 crores as of June 30, 2024. It was ₹9,853.12 crores as of March 31, 2024. The highest value was in March 2023, at ₹19,242.28 crores, up from ₹16,043.71 crores in March 2022.
Total Borrowing:
Hyundai Motor India's total borrowing stood at ₹758.14 crores as of June 30, 2024. It slightly decreased from ₹767.92 crores in March 2024, down from ₹1,158.60 crores in March 2023, and ₹1,140.03 crores in March 2022.
Investment Risks and Opportunities
Conclusion
The Hyundai Motor India IPO presents an exciting opportunity for investors, especially with the company's expansion plans in the EV market. However, potential investors should carefully review the risks and rewards before making a decision.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
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