Hyundai Motor India IPO 2024: Everything You Need to Know About India’s Biggest IPO Launch

Largest Indian IPO, Key Dates, Details, and How to Apply

Updated : 3 months ago

Categories: IPO

Tags: Hyundai Motor India IPO, Hyundai IPO 2024, Hyundai Motor IPO date, largest IPO in India, Hyundai IPO details, how to apply for Hyundai IPO, Hyundai IPO valuation

South Korean automotive giant Hyundai Motor Co is gearing up for what could be India's largest Initial Public Offering (IPO) ever. Hyundai Motor India Limited (HMIL), the Indian subsidiary of the global automaker, has received the final nod from the Securities and Exchange Board of India (SEBI) for its much-anticipated IPO, which is expected to hit the market in October 2024. This IPO is poised to surpass the historic listing of Life Insurance Corporation (LIC), which raised $2.7 billion in 2022. With a valuation estimated between $18 billion to $20 billion, Hyundai’s IPO will bring immense opportunities for investors looking to tap into India’s booming automotive industry. Let’s dive into the details of this mega IPO and why it’s set to be one of the most anticipated offerings of the year.

Hyundai Motor India IPO Details

Hyundai Motor India filed its Draft Red Herring Prospectus (DRHP) with SEBI in June 2024, seeking to raise around $3 billion (₹25,000 crore). The IPO will be a pure Offer for Sale (OFS), meaning the existing shareholders will offload their shares, and no new shares will be issued. According to the DRHP, the IPO will involve the sale of up to 142,194,700 equity shares with a face value of ₹10 each. The funds raised from the IPO will not only provide liquidity for the shareholders but will also increase Hyundai’s brand visibility in the Indian market and improve the public trading of its shares.

Key Details of Hyundai Motor India IPO

Issue Size: Rs 25,000 crore (approx.)
Offer Type: Pure Offer for Sale (OFS)
Number of Shares: 142,194,700 equity shares
IPO Valuation: $18 billion to $20 billion
Market Capitalization: Rs 1,02,800 crore to Rs 1,61,600 crore (expected)
Listing: NSE & BSE
Retail Quota: 35%
Qualified Institutional Buyers (QIBs): 50%
Non-Institutional Investors (HNIs): 15%

Hyundai Motor India’s Market Dominance

Hyundai Motor India has been a dominant player in the Indian automotive market since its inception in 1998. It is the second-largest passenger vehicle manufacturer in India, just behind Maruti Suzuki. Hyundai has consistently ranked at the top in terms of domestic sales volumes and has a portfolio that includes 13 models across various segments like hatchbacks, sedans, SUVs, and battery electric vehicles (BEVs). Hyundai’s export operations have also played a significant role in establishing its global footprint. The company has been India’s largest exporter of passenger vehicles since fiscal 2005, further cementing its position as a global leader in the auto industry.

Why Hyundai Motor India’s IPO Is Important

Hyundai's IPO will provide a unique opportunity for investors to own a piece of one of India's most successful automotive brands. Here's why this IPO stands out:

Largest IPO in Indian History: Hyundai Motor India's IPO is set to surpass LIC $2.7 billion IPO, making it the largest public offering in Indian corporate history.
Robust Financials: Hyundai Motor India has reported strong financials, with a revenue of Rs 603,075.80 million and a profit after tax (PAT) of Rs 47,092.50 million in FY23.
Strong Domestic and Export Presence: Hyundai's dominance in both domestic sales and exports makes it a key player in Indian automotive industry.
Future Growth in Electric Vehicles: With increasing focus on electric vehicles (EVs), Hyundai's investments in EV infrastructure make this IPO attractive to long-term investors.
Global Leadership: Hyundai Motor India's contribution to Hyundai Motor Co's global sales has risen from 15.48% in 2018 to 18.19% in 2023, highlighting its strategic importance.

Hyundai Motor India’s Competitive Edge

Hyundai Motor India’s diverse product lineup across different price segments gives it a competitive advantage over its rivals, including Maruti Suzuki. The company has made significant inroads in the growing SUV market and has also positioned itself well in the electric vehicle space, which is expected to see rapid growth in the coming years. In addition, Hyundai’s strong export business has further cemented its role as a global player. Between 2005 and the first 11 months of FY24, Hyundai emerged as the largest exporter of passenger vehicles in India, according to the company’s DRHP.

Who Are the Key Advisors and Stakeholders?

Several top global and domestic financial institutions are advising on this mega IPO: Investment Banks: Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley Legal Advisors: Shardul Amarchand Mangaldas (company counsel), Cyril Amarchand Mangaldas (banks' counsel), and Latham and Watkins (international counsel) These top-tier advisors are working together to ensure the successful launch of Hyundai’s IPO, making it one of the most anticipated listings in recent years.

IPO Timeline and Key Dates

While the official IPO launch date is yet to be confirmed, the IPO is expected to open in October 2024. Here are some important dates to look out for:

IPO Opening Date: October 2024
IPO Closing Date: November 2024
Allotment Date: November 2024
Listing Date: November 2024

How to Apply for Hyundai Motor India IPO?

Investors can apply for the Hyundai Motor India IPO through various platforms, including online brokerage accounts like Zerodha, Angel One, and others. Here's how you can apply: