Diwali delight: Hyundai Motor India IPO to spark investor interest; details

Hyundai Motor India IPO: Hyundai Motor India, the Indian arm of South Korean carmaker Hyundai, is likely to launch its highly anticipated Initial Public Offering (IPO) before Diwali, which falls on November 1, 2024, with public subscription opening on Monday, October 14, 2024, according to reports. The Hyundai Motor India IPO will mark the first time in two decades that a carmaker has gone public in India, following Maruti Suzuki's listing in 2003. 

Hyundai Motor India holds the second-largest share of the country's passenger vehicle market. Valued at nearly Rs 25,000 crore, the Hyundai Motor India IPO is poised to be India's largest offering since Life Insurance Corporation of India (LIC) went public with a Rs 21,000 crore IPO.

As investors await further details, such as the price band, lot size, allotment date, and tentative listing date of the Hyundai Motor India IPO, here are the key details that the South Korean automaker has shared in the Draft Red Herring Prospectus (DRHP) filed with market regulator Securities and Exchange Board of India (SEBI).

Hyundai Motor India IPO details

With the public issue, the South Korean automaker, Hyundai Motor, will offload 142,194,700 shares, each with a face value of Rs 10.

KFin Technologies is the registrar for the Hyundai Motor IPO, while Citigroup Global Markets India, JP Morgan India, Morgan Stanley India, and Kotak Mahindra Capital Company are the book-running lead managers of the public issue.

Hyundai Motor India said that the price band and the offer price will be determined in consultation with the book-running lead managers, based on the assessment of market demand for the equity shares with a face value of Rs 10 each, offered through the book-building process, and on the basis of quantitative and qualitative factors as described below.

Hyundai Motor India IPO objective

Hyundai Motor India, in the Draft Red Herring Prospectus (DRHP), stated that the objectives of the offer are to carry out the offer for the sale of up to 142,194,700 equity shares by the promoter selling shareholder and achieve the benefits of listing the equity shares on the stock exchanges.

Hyundai Motor India financial details

As per the DRHP papers, Hyundai Motor India's revenue from operations for the nine-month period ended December 31, 2023, stood at Rs 52,157.91 crore. It was recorded at Rs 60,307.58 crore for FY23, and for FY22 it stood at Rs 47,378.43 crore.

The company's total comprehensive income for the nine-month period ended December 31, 2023, was recorded at Rs 4,376.52 crore. It was reported at Rs 4,692.01 crore for FY23, and for FY22 it stood at Rs 2,904.29 crore.

About Hyundai Motor India

Hyundai Motor India is part of the Hyundai Motor Group, the third-largest auto original equipment manufacturer (OEM) in the world based on passenger vehicle sales in CY2023, according to the CRISIL Report. Hyundai Motor India has been the second-largest auto OEM in the Indian passenger vehicles market since fiscal 2009 (in terms of domestic sales volumes), according to the CRISIL Report.

The company also manufactures parts, such as transmissions and engines. Hyundai Motor India has been India’s largest exporter of passenger vehicles from fiscal 2005 to the first 11 months of fiscal 2024, having exported the highest cumulative number of passenger vehicles for the same period, according to the CRISIL Report. Since 1998 and up to March 31, 2024, Hyundai Motor India has cumulatively sold nearly 12 million passenger vehicles in India and through exports, the company said in the DRHP papers.