Hyundai Motor India IPO

About Hyundai Motor India IPO

Incorporated in 1996, Hyundai Motor India Limited 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. The company has a track record of manufacturing and selling reliable, feature-rich, and innovative four-wheeler passenger vehicles. Since Fiscal 2005, Hyundai Motor India has been the country’s largest exporter of passenger vehicles. 

It manufactures and sells four-wheeler passenger vehicles, with a portfolio of 13 models across segments such as sedans, hatchbacks, sports-utility vehicles (SUVs), and battery electric vehicles (EVs). It also manufactures parts, such as transmissions and engines. Since 1998, the company has cumulatively sold nearly 12 million passenger vehicles in India and through exports. 

Hyundai Motor India manufacturing plant is located in Chennai, Tamil Nadu, and has a production capacity of 8.24 lakh units as of 30 June 2024. It was HMC’s first global integrated manufacturing plant outside Korea. As of 30 June 2024, it sourced 93% of its parts and materials from the four districts adjoining its manufacturing plant to increase operational and cost efficiency. 

The company has a network of 1,377 sales outlets operated by 364 dealer companies across 1,036 cities and towns in India as of 30 June 2024. Its network of 1,561 service centres also spans 957 cities and towns in India at the same time. 

As of 30 June 2024, it had 5,672 full-time employees. India also has Hyundai Motor Group’s largest supply chain outside Korea, comprising 194 tier-1 and 1,083 tier-2 suppliers by location.  

In FY24 alone, the company received more than 50 awards for the Hyundai brand and products. According to RHP, the company’s current market position is mainly due to its wide product offerings, the strong Hyundai brand in India, the ability to leverage new technologies to enhance operational and manufacturing efficiency, and the ability to expand into new businesses such as EVs through innovation. 

Between FY22 and FY24, it saw a CAGR rise of over 13.8% in its revenue from operations and 27.8% in its net profit. Moreover, the domestic passenger vehicle industry is expected to grow at a CAGR of 4.5-6.5% to reach 5.7 million domestic vehicle sales between FY24 and FY29, which could benefit the company. 

Now, Hyundai Motor India Limited is launching its initial public offer (IPO). The total IPO issue size is ₹27,870.16 crore, comprising entirely of an offer sale. The money raised from the issue will go to selling promoters. Its shares will be listed on the NSE and BSE.

Here are key details about the Hyundai Motor India IPO:

Financial snapshot

Hyundai Motor India IPO Analysis

Strengths and Opportunities

1. The company is the largest auto OEM in India by sales volume in the mid-size SUV sub-segment between FY19 and the first 11 months of FY24.  Creta had a market share of 30% in the mid-size SUV sub-segment in the first 11 months of FY2024.
2. Diverse portfolio of passenger vehicles across major passenger vehicle segments such as Aura and Verna under sedans, Grand i10 NIOS, i20 and i20 N Line under hatchbacks, and Exter, Venue, Venue N Line, Creta, Creta N Line, Alcazar, Tucson and IONIQ 5 under SUVs.
3. Ability to identify emerging market trends and introduce vehicles to meet current customer demands in time as it launched an aggregate of eight upgrades and model changes within a span of 15 months from January 2023 to March 2024.
4. Pan-India sales, distribution and after-sale services network as its sales and service network was the second largest in India in terms of the number of customer touchpoints as of 31 March 2023. 
5. Digitisation across the value chain with its ‘Click to Buy’ website, ‘myHyundai’ and ‘H-Smart’ apps, and Global Dealer Management System (GDMS).
6. Flexible and automated manufacturing capabilities with a production rate of one passenger vehicle within 30 seconds, 2,000 critical machines and 708 robots as of 31 March 2024.

Risks and threats

1. Increases in the prices of parts and materials could adversely affect its business as it depends on many factors like concessional rate on customs duties for imports under the Comprehensive Economic Partnership Agreements between the governments of Korea and India among other things.
2. The company depends on a limited number of suppliers as 43% of its total purchase cost was accounted for by its top 5 suppliers in FY23, and any interruption could adversely affect its business. 
3. Significantly dependent on its promoter group - HMC, for its operations. 
4. The company has to pay royalties to its parent company, equivalent to 3.5% of total sales revenue. Hence, any increase in the royalty fee could adversely impact its profitability.
   
5. Subject to risks associated with concentration of its manufacturing facilities as all of its passenger vehicles are manufactured at its plant in Chennai.
6. Receives many incentives on electricity tax, central sales tax and subsidies for investment promotion and clean energy vehicles among others, and a reduction will adversely affect its finances.
7. Global operations expose it to geopolitical, legal, socio-economic and forex risks.
8. Faces competition from Tata Motors, Mahindra & Mahindra, Maruti Suzuki India, Kia Motors, Volkswagen, Nissan Motor, and Honda Cars India. 
9. Substantially dependent on the sale of its SUV model as it contributed 62% to the total domestic sales as of Q3 FY24.
10. Business is seasonal and cyclical in nature and subject to reduced sales during some quarters.
11. Has consistently experienced negative cash flows from investing and financing activities between FY21 and Q3 FY24.

Hyundai Motor IPO Details

Hyundai Motor IPO Date

According to the offer document filed by the company with the SEBI, the Hyundai Motor IPO’s opening date – in other words, the Hyundai Motor IPO launch date – will be 15th October 2024. The Hyundai Motor IPO closing date is 17th October 2024. After this, investors will be updated about the allotment status on 18th October 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on 21st October 2024. The Hyundai Motor IPO listing date is 22nd October 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. 

Hyundai Motor IPO Price Band

The IPO is an offer for sale. The Hyundai Motor IPO price band has been set between ₹1,865 and ₹1,960 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Hyundai Motor IPO listing price will be determined on 22nd October 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

Hyundai Motor IPO Lot Size

The Hyundai Motor IPO details have been declared. The Hyundai Motor IPO lot size is set at 7 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Hyundai Motor IPO issue size is approx ₹27,856 crore. 

How to pre-apply for the Hyundai Motor India IPO?

You can pre-apply for the Hyundai Motor India IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Hyundai Motor India IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Hyundai Motor IPO?

If you are interested in this investment opportunity but unsure how to apply for the Hyundai Motor IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Hyundai Motor IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Hyundai Motor IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Hyundai Motor India IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Hyundai Motor India IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Hyundai Motor India IPO allotment status will be mentioned

Check Allotment Status

How to open demat account with Upstox?

To apply for the Hyundai Motor India IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account