In its biggest public issue at Dalal Street, Hyundai Motor India (HMI) is set to launch its much-awaited IPO worth $3 billion or ₹25,000 crore for subscriptions next week. The company has not officially revealed the price band via red herring prospectus (RHP) yet, but a global news agency citing sources said it could be in the range of ₹1,865 to ₹1,960 per share.
Hyundai Motor India's IPO will mark the first issue by any automaker since 2003 when India's one of biggest passenger vehicle makers Maruti Suzuki launched its public issue. The IPO will likely open for anchor investors on October 14, with the following two days fixed for retail and other investors. The listing is likely on October 22.
Shares of Hyundai Motor are commanding a grey market premium (GMP) of ₹280, a huge decline from ₹370 on September 30.
The country’s second-largest carmaker by volume after Maruti, Hyundai Motor filed preliminary papers with SEBI in June. Hyundai received the green signal from the Securities and Exchange Board of India (SEBI) for its IPO in September. As per the DRHP, it has set its valuation between ₹1.5 lakh crore to ₹1.7 lakh crore.
If this IPO becomes successful, it will surpass the record ₹20,557 crore raised by the state-owned insurer Life Insurance Corporation (LIC) of India in 2022.
The DRHP says the IPO will only see Hyundai Motor India’s South Korean parent dilute its stake. The IPO is an offer for sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component. That's why Hyundai Motor India will not receive any proceeds from the IPO.
A part of the Hyundai Motor Group, Hyundai India is the third largest auto original equipment manufacturer (OEM) in the world, according to the CRISIL report. India is Hyundai’s third-largest market followed by the U.S. and South Korea. In 2023, Hyundai India's contribution to Hyundai Motors' global volume stood at 18% against 14.5-15% four years back.
The company has invested ₹29,741 crore ($5.04 billion) in India operations as of December 31, 2023, in tangible fixed assets and capital work in progress since its inception. As of December 31, 2023, it had 5,475 full-time employees and the largest supply chain outside Korea. Its model line-up consists of cars across different customer segments, including Grand i10 Nios, i20, Aura, Exter, Venue, Verna, Creta, Alcazar, Tucson and the all-electric SUV IONIQ 5. The company has manufacturing plants in Chennai (Tamil Nadu) and Talegaon (Maharashtra). The Chennai manufacturing plant had an annual production capacity of 824,000 units as of March 31, 2024.
HMI's profit stood ₹4,709 crore and ₹4,383 crore, in FY23 and nine months of FY24, respectively. The revenue stood at ₹60,307.58 crore and ₹52,157.91 crore in the said period.
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