Hyundai Motor India IPO Details: Launch Date, Share Price, Size & Review

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Hyundai Motor India IPO Details: Launch Date, Share Price, Size & Review

The Business Profile of the Hyundai Motor India

The company is one of the largest passenger vehicle makers and the third largest auto original equipment manufacturer (“OEM”) in the world. In the Indian market since 2009, it is the second largest auto OEM in Indian passenger vehicles.

Currently company has around 13 models across multiple passenger vehicle segments by body type that consists of sedans (Aura and Verna), sports-utility vehicles (Exter, Venue, Venue N Line, Creta, Creta N Line, Alcazar, Tucson and IONIQ 5), hatchbacks(Grand i10 NIOS, i20 and i20 N Line), and battery electric vehicles (“EVs”).

Apart from making multiple passenger vehicles, the company also manufactures auto parts such as transmissions and engines. The company also export passenger vehicles manufactured in India and is an exporter of one of the highest cumulative numbers of passenger vehicles for the same period. From 1998 to the year 2024, the company has sold around 12 million passenger vehicles in India and exported.

Its main old Manufacturing plant in Chennai can produce 824,000 vehicles annually. The company acquired another manufacturing plant at Talegaon that will be partly in the second half of Fiscal 2026. Once it is fully operational, the total production capacity of the company will cross more than 1 million units per year.

The company has 366 sales outlets located across 1,031 cities and 1,550 service centers situated in 962 cities and towns across India providing widespread dealers and service networks to its customers.

The Main Objectives to Launch the Hyundai Motor India IPO

As per the draft red hearing prospects, the entire issue will be offered for sale by the promoter of the company. One of the main objectives of the company is to list on the bourses and also give the option to sell some of the stakes in the company.

The listing on the exchange also improves the brand image and visibility o the company, side by side unlocking value of the company by providing the liquidity and public market for the Equity Shares in India.

Hyundai Motor India IPO Issue Price & Size

The issue price of Hyundai Motor India hasn’t been released yet. Upon releasing the dates, the investors can bid between these price ranges. The company has an OFS of 142,194,700 equity shares.

Launch Date of Hyundai Motor India IPO

The IPO of this company is launching on (Opening Date XXXX), hence the opening date for bidding is (Open Date)and the IPO is closing on (Closing Date). Investors can bid in this IPO between these days during the primary market hours.

Hyundai Motor India Financial Performance

Revenue from operation from domestic market has witnesses a marginal downfall, from 81.21% in 2021 to 76.34 as of Dec, 2023. Total sales volume from domestic marker rose from 471,535 in 2021, to 454,404 in Dec 2023.

Yearly net profit margin has been on a rise from 2021. Net profit margin were 4.54 in 2021, which rose to 8.22 as of Dec 0223.

Sales outlet as well as service outlet has seen a rise over the years. Number of sales outlet has increase from 1167 in 221, to 1366 in Dec, 2023. Whereas, number of service outlets increase from 1307 to 1550 as of Dec 23.

Hyundai Motor India Promoters & Shareholding

There is only one promoter of the company, i.e. Hyundai Motor Company. The promoter company hold 100% stake at the time of Filing the DRHP.

Should You Subscribe to Hyundai Motor India IPO or Not

While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.

Strengths of the Company:

  • According to the CRISIL Report, in terms of domestic sales volume, since 2009, Hyundai Motor India has been the second largest auto OEM in the Indian passenger vehicles market in India.
  • The company is having a diverse portfolio of passenger vehicles across powertrains and major passenger vehicle segments including sedans, hatchbacks, SUVs and electric vehicles.
  • To cover the widespread market in India, the company has situated 1,366 sales outlets in 1,031 cities and towns in India with 1,550 service centres across 962cities and towns in India.
  • To meet the demands of its customers, the company has established highly flexible and automated manufacturing capabilities at its manufacturing plants in India.
  • The company has the ability to identify emerging market trends in a timely manner and introduce innovative passenger vehicles and technologies to meet customer needs in India.
  • Further, as part of its growth strategy, the company is leveraging its deep understanding of consumer preferences to successfully expand the passenger vehicle portfolio.
  • To expand its product portfolio, the company is also looking to expand its capacity expansion from its current annual production of 824,000 units to 1,074,000 units per year in the coming years.
  • As per the shift or change in demand from fuel-based engines to electric-based vehicles in the automobile industry, especially in passenger vehicles, Hyundai is also looking to expand its market share in this segment with the launch of more EV vehicles at more affordable prices.
  • To provide a faceable recharging solution to its customers for EVs, the company has also aimed to develop the EV infrastructure in India by constructing charging stations.
  • While considering the scope of demand from overseas countries, the company is also looking to further strengthen its position as the export hub with the largest foreign production base in Asia.
  • At the financial end, the company has registered healthy CAGR growth in revenue, EBITDA and net profit with improved EBITDA and net profit margins in the last three years.

Also Read: Risk Factors involved in Applying for an IPO

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