Hyundai Motor India Limited IPO 2024: Detailed & Subscribe or Avoid?
Prepared On: October 15, 2024
Hyundai Motor India Limited (HMIL) is set to launch its Initial Public Offering (IPO) with a total issue size of ₹27,870.16 crores. This significant offering comprises an offer for sale of 14.22 crore shares, marking one of the most anticipated IPOs in the Indian primary market.
IPO Subscription Period
- Open Date: October 15, 2024
- Close Date: October 17, 2024
- Allotment Date: October 18, 2024
- Listing Date: October 22, 2024 (Tentative)
- Stock Exchanges: BSE and NSE
Pricing and Lot Details
- Price Band: ₹1,865 – ₹1,960 per share
- Face Value: ₹10 per share
- Minimum Lot Size: 7 shares
- Investment Requirements:
- Retail Investors: Minimum ₹13,720 (7 shares)
- Small Non-Institutional Investors (sNII): 15 lots (105 shares) – ₹205,800
- Big Non-Institutional Investors (bNII): 73 lots (511 shares) – ₹1,001,560
Reservation Structure
The Hyundai Motor IPO reserves shares across various investor categories to ensure broad participation:
- Qualified Institutional Buyers (QIB): 20% (2,82,83,260 shares)
- Non-Institutional Investors (NII): 15% (2,12,12,445 shares)
- Big NII (bNII): 10%
- Small NII (sNII): 5%
- Retail Investors: 35% (4,94,95,705 shares)
- Employees: 0.55% (7,78,400 shares) at a discounted price of ₹186 per share
- Anchor Investors: 30% (4,24,24,890 shares) raising ₹8,315.28 crores
Key Dates and Timeline
- IPO Opens: Tuesday, October 15, 2024
- IPO Closes: Thursday, October 17, 2024
- Allotment Basis: Friday, October 18, 2024
- Refund Initiation: Monday, October 21, 2024
- Shares Credited to Demat: Monday, October 21, 2024
- Listing Date: Tuesday, October 22, 2024
- UPI Mandate Cut-off: 5 PM on October 17, 2024
Book Running Lead Managers
Hyundai Motor India Limited has appointed prominent financial institutions as book-running lead managers for the IPO:
- Kotak Mahindra Capital Company Limited
- Citigroup Global Markets India Private Limited
- HSBC Securities & Capital Markets Pvt Ltd
- J.P. Morgan India Private Limited
- Morgan Stanley India Company Pvt Ltd
Kfin Technologies Limited has been designated as the registrar for the IPO.
Promoter Information
- Promoter: Hyundai Motor Company
- Shareholding:
- Pre-Issue: 100%
- Post-Issue: 82.50%
About Hyundai Motor India Limited
Established in May 1996, Hyundai Motor India Limited is a subsidiary of the Hyundai Motor Group, the world’s third-largest automotive OEM by passenger vehicle sales. HMIL manufactures and markets a wide range of vehicles, including sedans, hatchbacks, SUVs, and electric vehicles (EVs), supported by a robust network of 1,366 sales points and 1,550 service centers across India.
Key Models:
- Grand i10 NIOS
- i20 & i20 N Line
- AURA
- Elantra
- Venue & Venue N Line
- Verna
- Creta & Creta N Line
- Alcazar
- Tucson
- Ioniq 5 (All-Electric SUV)
HMIL’s manufacturing facility near Chennai is pivotal in producing its comprehensive vehicle lineup, catering to both domestic and international markets, including Africa, the Middle East, Bangladesh, Nepal, Bhutan, and Sri Lanka.
Financial Highlights
- Revenue Growth: Increased by 16% from ₹61,436.64 crores (FY 2023) to ₹71,302.33 crores (FY 2024)
- Profit After Tax (PAT): Rose by 29%, reaching ₹6,060.04 crores in FY 2024
- Net Worth: ₹12,148.71 crores
- Total Borrowing: ₹758.14 crores
Key Performance Indicators (KPIs):
- ROCE: 13.69%
- RoNW: 12.26%
- P/BV: 14.93
- EPS (Pre-IPO): ₹74.58
- EPS (Post-IPO): ₹73.33
- P/E Ratio (Pre-IPO): 26.28x
- P/E Ratio (Post-IPO): 26.73x
IPO Objectives
Hyundai Motor India Limited will not receive any proceeds from the IPO. Instead, the promoter-selling shareholders will receive the Offer Proceeds after deducting offer-related expenses and applicable taxes.
Subscription Status (As of October 15, 2024, 7:02:07 PM)
- Overall Subscription: 0.18x
- Retail: 0.27x
- QIB: 0.05x
- NII: 0.13x
- Employee Category: 0.81x
Total Applications Received: 9,89,91,410 for 1,80,50,557 shares bid.
Recommendation: Apply. The Hyundai Motor India Limited (HMIL) IPO offers strong growth potential due to its market leadership, solid financials, and strategic expansion into electric vehicles (EVs). Backed by the globally renowned Hyundai Motor Group, and with a robust outlook for future growth, this IPO presents an attractive opportunity for long-term investors, especially those looking for exposure to the automotive and EV sectors. Despite the slightly high P/E ratio, the company’s consistent performance and future plans make it a promising investment.