Hyundai Motor India IPO: Hyundai Motor India has filed the Red Herring Prospectus (RHP) with the Registrar of Companies today, October 8. The company’s IPO will open for subscription on October 15. Investors will be able to bid in it till October 17. Under this IPO, fresh equity shares will not be issued and shares will be sold only through Offer for Sale (OFS). According to RHP, promoter Hyundai Motor Company will sell 14.2 crore equity shares in the OFS. The price band for this will be announced on October 9.
Details related to Hyundai Motor India IPO
This public issue of $ 3 billion will open for institutional investors (anchor book) for one day on October 14. Half of the net public issue size has been reserved for qualified institutional buyers, of which up to 60 per cent can be allocated to anchor investors. Additionally, 15 percent shares are reserved for non-institutional investors and the remaining 35 percent shares are reserved for retail investors. The company has reserved 7,78,400 equity shares for its employees.
According to the schedule, the automobile company will allot shares to the successful investors of the IPO by October 18 after the subscription. The equity shares will be credited to the demat accounts of successful investors by October 21. Trading in Hyundai Motor India shares will begin on BSE and NSE from October 22.
Could be India’s biggest IPO
With a potential issue size of $3 billion, this is going to be the largest IPO in India. Earlier, in 2022, LIC had raised $2.7 billion (Rs 21000 crore), which is the largest IPO till date. According to RHP, parent company Hyundai Motor Company will hold 82.5 percent shareholding in the Indian unit after the public issue.
Hyundai Motor India has been the second largest car company in the Indian passenger vehicle market (in terms of domestic sales volume) after Maruti Suzuki since FY 2009, while it is the second largest passenger vehicle exporter from India from April 2021 to June 2024 . Hyundai Motor India’s IPO is expected to get a strong response from investors and is going to be the biggest listing in the automobile sector in India since Maruti Suzuki India’s debut in 2003.
Hyundai Motor India Financial
Hyundai Motor India’s financial performance has been strong. Net profit increased by 12.1 per cent year-on-year to Rs 1489.6 crore for the quarter ending June 2024, while operating numbers were also good. EBITDA grew 17.2 per cent to Rs 2,340.3 crore in the June quarter, while margins expanded 148 bps to 13.5 per cent compared to the same period last year. Revenue during the first quarter of FY 2025 stood at Rs 17,344.2 crore, which is 4.3 percent higher than Rs 16,623.5 crore in the same period of the last financial year.
Its net profit in FY2024 increased by 28.7 per cent to Rs 6060 crore compared to the previous financial year, and revenue stood at Rs 69,829 crore, which is 15.8 per cent higher than FY2023. EBITDA grew 21 per cent to Rs 9,132.6 crore in FY24 compared to the previous fiscal and margins expanded 58 bps to Rs 13.08.
Shares of parent company Hyundai Motor fall
Shares of parent Hyundai Motor Co fell 8.2 per cent on the Korean Stock Exchange after the Indian unit filed a draft red herring prospectus for an IPO on June 14, 2023. However, this stock has risen 45 percent since November 2023. The merchant bankers handling Hyundai Motor India’s IPO are Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities & Capital Markets (India), JP Morgan India and Morgan Stanley India Company. Kfin Technologies is the registrar of this offer.
