Hyundai Motor India IPO Shines Bright Ahead of Diwali Festivities
Hyundai Motor India's IPO will be a groundbreaking event, marking the first time in 20 years that a car manufacturer has entered the public market in India, following Maruti Suzuki's initial offering back in 2003.
Hyundai Motor India IPO Shines Bright Ahead of Diwali Festivities
Hyundai Motor India, the Indian branch of the South Korean automotive giant, is gearing up for its highly anticipated Initial Public Offering (IPO) just before Diwali on November 1, 2024. Reports suggest that public subscriptions will open on Monday, October 14, 2024. This will mark the first time in two decades that an automaker in India has gone public, the last being Maruti Suzuki in 2003.
As the second-largest player in India’s passenger vehicle segment, Hyundai’s IPO is expected to be a game-changer, with a valuation nearing Rs 25,000 crore. This makes it the largest IPO since the Life Insurance Corporation (LIC) went public with its Rs 21,000 crore offering.
While investors eagerly await key updates like the price band, lot size, allotment date, and tentative listing timeline, Hyundai has already provided essential information in its Draft Red Herring Prospectus (DRHP) submitted to SEBI.
Hyundai Motor India IPO Breakdown
The public issue involves the sale of 142,194,700 shares, each carrying a face value of Rs 10. KFin Technologies is appointed as the registrar, and Citigroup Global Markets India, JP Morgan India, Morgan Stanley India, and Kotak Mahindra Capital Company are the book-running lead managers.
The offer price and price band will be finalized through the book-building process, in line with market demand and other factors outlined in the DRHP.
Purpose of the IPO
Per the DRHP, Hyundai intends to sell 142,194,700 equity shares via the offering, with the dual goals of monetizing the shares and benefiting from the equity listing on the stock exchanges.
Financial Snapshot
For the nine months ending December 31, 2023, Hyundai Motor India reported operating revenue of Rs 52,157.91 crore. For FY23, the total revenue was Rs 60,307.58 crore, up from Rs 47,378.43 crore in FY22. Comprehensive income for the nine-month period in 2023 stood at Rs 4,376.52 crore, while FY23 saw profits of Rs 4,692.01 crore, a significant increase from Rs 2,904.29 crore in FY22.
