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HYUNDAI MOTOR INDIA IPO

IPO Details

ICICI Direct Research Rating : SUBSCRIBE
-
-
7 Shares
₹ 13,720
₹ 1865 – 1960
₹ Up to 27870.16 Cr

Issue timeline

  • -
  • 18-Oct-2024
  • 21-Oct-2024
  • 21-Oct-2024
  • 22-Oct-2024

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

All About India's Biggest IPO- Hyundai IPO

India is going to have its biggest IPO pretty soon. Hyundai Motor India has secured Security and Exchange Board of India (SEBI) approval for its $3 billion IPO, which values the company at around $20 billion. The previous biggest IPO that the Indian market saw was LIC's $2.7 billion IPO. Apart from being the biggest IPO, it would also be the first car manufacturer to get listed in India in two decades, following Maruti Suzuki's IPO in 2003. Let us look at the company and the IPO details.

All About Hyundai

Hyundai Motors India 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 CY23. They have been the second-largest auto OEM in the Indian passenger vehicles market since FY09 (in terms of domestic sales volumes).

The company has a track record of manufacturing and selling four-wheeler passenger vehicles that are reliable, feature-rich, innovative, and backed by the latest technology. This is demonstrated in their portfolio of 13 models across multiple passenger vehicle segments by body type such as sedans, hatchbacks, sports-utility vehicles (SUVs), and battery electric vehicles (EVs). They also manufacture parts, such as transmissions and engines.

They have also been India’s largest exporter of passenger vehicles from FY05 to the first 11 months of FY24, having exported the highest cumulative number of passenger vehicles for the same period. Since 1998 and up to March 31, 2024, they have cumulatively sold nearly 12 million passenger vehicles in India and through exports.

Hyundai IPO

 

Financials of Hyundai Motors

Below are financial numbers of Hyundai Motors:

  • For FY21, FY22, and FY23, the company reported a revenue of Rs 40,972.25 crore, Rs 47,378.43 crore, and Rs 60,307.58 crore, respectively. The revenue reported a strong double-digit growth.
  • Hyundai Motors reported EBITDA of Rs 4,245.66 crore, Rs 5,486.09 crore, and Rs 7,548.78 crore for FY21, FY22, and FY23, respectively. The EBITDA margin for the same period was 10.36%, 11.58%, and 12.52%, respectively.
  • The company reported a profit of Rs 1881.16 crore, Rs 2901.59 crore, and Rs 4709.25 crore for FY21, FY22, and FY23, respectively. The profit has more than doubled in this period. The profit margins have improved from 4.54% in FY21 to 7.67% in FY23.
  • The Return on Capital Employed for last three financial years was 15.38%, 20.37%, and 28.75%, respectively.

 

Particulars 9MFY24 FY23 FY22 FY21

Revenue (Crore)

52,157.91

60,307.58

47,378.58

40,972.25

Domestic
(% of revenue from operations)

76.34%

76.59%

78.80%

81.21%

Exports
(% of revenue from operations)

23.66%

23.41%

21.20%

18.79%

Revenue growth (YoY%)

*

27.29%

15.64%

*

Profit (Crore)

4,382.87

4,709.25

2,901.59

1,881.16

Profit Margin

8.22%

7.67%

6.05%

4.54%

EBITDA (Crore)

6,610.77

7,548.78

5,486.09

4,245.66

EBITDA Margin

12.67%

12.52%

11.58%

10.36%

ROCE (%)

27.19%

28.75%

20.37%

15.38%

 

Area of Service of Hyundai

Below are different things the company does:

  • Press Shop: A computer-controlled line that converts sheet metal to body panels with high dimensional accuracy and consistency.
  • Body Shop: It is a hi-tech line that builds full body shells from panels.
  • Automated robotic arms are used for intricate welding operations that ensure superior and consistent build quality.
  • Paint Shop: It is one of the most modern paint shops in the country and uses the environment friendly water-based process for superior and lasting exteriors. A unique process management system followed here helps us deliver the most extensive colour range, independent of minimum batch requirements, helping customers get their preferred colour anytime.
  • Assembly Shop: In Assembly Shop all the engine and suspension parts, the electrical parts, the under-body parts etc are fitted into the car. The cars go through complete testing in the Assembly Shop. The Assembly Shop comprises the Trim Line, the Chassis Line, the Final Line and the OK Line.
  • Engine & Transmission Shop: One of the biggest engine shops in the country, this unit is equipped with the most modern tooling and testing facilities to make a wide range of engines in-house. 
 

All About Hyundai IPO

The IPO is expected to hit the market at the end of 2024 or early next year. Currently, the listing would be purely Offer for Sale (OFS). The company said, "The objects of the offer are to carry out the Offer for Sale of up to 142,194,700 Equity Shares of the face value of Rs 10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges".

The company expects that listing the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India.

Conclusion
No doubt Hyundai Motors is an excellent company and investors should look forward to its IPO. However, investors should also check the valuations at which the IPO will launch. As per the data available, the company is seeking a premium valuation compared to its listed peers - Maruti Suzuki and Mahindra and Mahindra.

Strengths & Risks

Strengths (3)

The second largest auto OEM in India and the largest exporter of passenger vehicles

They have consistently been the largest auto OEM in India by sales volume in the mid-size SUV sub-segment from Fiscal 2019 to the first 11 months of Fiscal 2024.Their 2016 India Car of the Year (ICOTY) awardee, Creta had a market share of 30% in the mid-size SUV sub-segment in the first 11 months of Fiscal 2024.They were also the India’s largest exporter of passenger vehicles from Fiscal 2005 (Source: CRISIL Report, Company DRHP)

Risks (2)

Depends on a limited number of suppliers for parts and materials

They depend on a limited number of suppliers for the procurement of parts and materials required for their manufacturing operations.The operations of their suppliers could be affected by external factors such as adverse weather conditions, labour strikes, facility or machine malfunctions and shortages of materials, among others, which could have material adverse affect on supplies to them and their production timelines. (Source: Company DRHP)

  • The second largest auto OEM in India and the largest exporter of passenger vehicles

    They have consistently been the largest auto OEM in India by sales volume in the mid-size SUV sub-segment from Fiscal 2019 to the first 11 months of Fiscal 2024.Their 2016 India Car of the Year (ICOTY) awardee, Creta had a market share of 30% in the mid-size SUV sub-segment in the first 11 months of Fiscal 2024.They were also the India’s largest exporter of passenger vehicles from Fiscal 2005 (Source: CRISIL Report, Company DRHP)

  • They have a diverse portfolio of passenger vehicles across powertrains and major passenger vehicle segments

    Their current portfolio of passenger vehicles caters to a diverse customer base offering “something for everyone".portfolio of 13 passenger vehicle models across major passenger vehicle segments by body type include sedans (Aura and Verna), hatchbacks (Grand i10 NIOS, i20 and i20 N Line) and SUVs (Exter, Venue, Venue N Line, Creta, Creta N Line, Alcazar, Tucson and IONIQ 5)(Source: CRISIL Report, Company DRHP)

  • Pan-India sales, distribution and after-sale services network offered by their dealers

    As of December 31, 2023, we had 1,366 sales outlets across 1,031 cities and towns in India and 1,550 service centres across India across 962 cities and towns in India. As per the CRISIL Report, their sales and service network was the second largest in India in terms of the number of customer touchpoints as of March 31, 2023.(Source: Company DRHP).

  • Depends on a limited number of suppliers for parts and materials

    They depend on a limited number of suppliers for the procurement of parts and materials required for their manufacturing operations.The operations of their suppliers could be affected by external factors such as adverse weather conditions, labour strikes, facility or machine malfunctions and shortages of materials, among others, which could have material adverse affect on supplies to them and their production timelines. (Source: Company DRHP)

  • Their Company, one of their Subsidiaries and their Promoter are involved in outstanding legal proceedings

    In the ordinary course of business, their Company, one of their Subsidiaries and their Promoter are involved in certain legal proceedings pending at different levels of adjudication before various courts and tribunals.An adverse outcome in any of these proceedings, either individually or in aggregate, may affect their reputation, business operations, cash flows, financial condition, results of operations and prospects.(Source: Company DRHP)

Financials

Net Worth
Total Borrowings
Profit for the Period
Basic Earnings Per Share

Hyundai IPO FAQs

What is the minimum lot size and investment required for Hyundai IPO?

The lot size is 7 shares and minimum investment required is Rs.13,720 for Hyundai IPO

Hyundai IPO opens from 15th Oct and closes on 17th Oct.

The allotment date is 18th Oct and the listing date is 22nd Oct for Hyundai IPO.

The price band of Hyundai IPO is Rs.1865 - Rs.1960

The book runners for Hyundai Motor India IPO are Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Pvt Ltd, Hsbc Securities & Capital Markets Pvt Ltd, J.P. Morgan India Pvt Ltd, Morgan Stanley India Company Pvt Ltd

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Hyundai Motor India IPO

₹ 13,720
7 Shares

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Retail Individual Investor -
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*The financials mentioned above are sourced from DRHP/ RHP documents.

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