Hyundai Motor India Limited is part of the Hyundai Motor Group, which is the 3rd largest auto OEM n the world based on passenger vehicle sales.
Hyundai Motor IPO intends to raise Rs 27,870.16 crores. The issue is entirely an offer for sale of 14.22 crore shares.
| IPO opens | October 15, 2024 |
| IPO Closes | October 17, 2024 |
| IPO Size (Rs.) | ₹27,870.16 Cr |
| Breakup | entirely OFS |
| Face Value: | ₹ 10 |
| IPO Price in Rs : | ₹1865 to ₹1960 per share |
| Minimum Lot | 7 Shares |
| Listing At | NSE , BSE (mainboard) |
| QIB | ~50 % |
| NII Quota | ~15% |
| Retail Quota | ~35% |
| BRLM | Kotak Mahindra Capital, Citigroup Global, HSBC Securities, J P Morgan, Morgan Stanley |
| Registrar | KFin Technologies |
About Hyundai Motor India (HMI) Limited:
- Incorporated on May 6, 1996, Hyundai Motor India is promoted by Hyundai Motor Company. (HMC), Korea.
- HMI is the 3rd largest auto original equipment manufacturer (“OEM”) in the world based on passenger vehicle sales in CY2023. They have been the 2nd largest auto OEM in the Indian passenger vehicles market since Fiscal 2009 (in terms of domestic sales volumes).
- They have a track record of manufacturing and selling 4-wheeler passenger vehicles that are reliable, feature-rich, innovative and backed by the latest technology. They have portfolio of 13 models across multiple passenger vehicle segments by body type such as sedans, hatchbacks, sports-utility vehicles and battery electric vehicles.
- They also manufacture parts, such as transmissions and engines.
- They have also been India’s 2nd largest exporter of passenger vehicles from April 1, 2021 through June 30, 2024.
- Since 1998 and up to June 30, 2024, they have cumulatively sold nearly 12 million passenger vehicles in India and through exports.
- In CY2023,HMI was among the Top 3 contributors to HMC’s global sales volumes, and their contribution to HMC’s sales volumes increased from 15.48% in CY2018 to 18.19% in CY2023.
- Hyundai’s Chennai manufacturing plant had an annual production capacity of 824,000 units as of June 30, 2024.
Financials : Hyundai Motor IPO
| Financial Details (₹ In Cr) | 2024 (03) | 2023 (03) | 2024 (12) | 2023 (12) | 2022 (12) |
| Revenue from Operations | 17,344.23 | 16,623.51 | 69,829.06 | 60,307.58 | 47,378.43 |
| Revenue Growth (%) | 4.34% | – | 15.79% | 27.29% | – |
| EBITDA | 2,340.25 | 1,997.26 | 9,132.62 | 7,548.78 | 5,486.09 |
| EBITDA Margin (%) | 13.49% | 12.01% | 13.08% | 12.52% | 11.58% |
| Net Profit | 1,489.65 | 1,329.19 | 6,060.04 | 4,709.25 | 2,901.59 |
| Net Profit (%) | 8.48% | 7.81% | 8.50% | 7.67% | 6.05% |
| Equity Share Capital | 812.54 | 812.54 | 812.54 | 812.54 | 812.54 |
| Net Worth | 12,148.71 | 21,380.83 | 10,665.66 | 20,054.82 | 16,856.26 |
| Total Borrowings | 758.14 | 1,283.10 | 767.92 | 1,158.60 | 1,140.03 |
| RONW (%) | 12.26%^ | 6.22%^ | 56.82% | 23.48% | 17.21% |
| ROCE (%) | 13.69%^ | 7.63%^ | 62.90% | 28.75% | 20.37% |
| NAV (₹) | 149.52 | 263.14 | 131.26 | 246.82 | 207.45 |
| Post issue Share Capital | 812.54 | ||||
| FV | 10.0 | ||||
| IPO price | 1,960.0 | ||||
| EPS Fy24 | 74.6 | ||||
| PE | 26.3 | ||||
| EPS Fy25 (annualized) | 73.3 | ||||
| PE (annualized) | 26.7 | ||||
| Market cap in Lacs | 1,59,258 | ||||
| Market cap / Sales | 2.28 |
Anchor: Hyundai Motor IPO
Hyundai Motor India raised ₹8,315.28 crore from anchor investors. 225 anchor investors participated, including marquee names such as GIC, Capital Group arms, Fidelity Group, Government Pension Fund Global ( Norges Bank Investment Management) , BlackRock, T Rowe Price , Baillie Gifford and SBI MF, HDFC MF, ICICI Prudential MF, Nippon India MF, Kotak MF and Axis MF.
Salient Points: Hyundai Motor IPO
- Indian PV sales are projected to grow 4.5%-6.5% CAGR and are expected to reach 5.2-5.7 million units by FY29, with an average vehicle price of INR 7 lac.
- HMI is the 2nd largest auto OEM in India and the largest exporter of passenger vehicles.
- Diverse portfolio of passenger vehicles across powertrains and major passenger vehicle segments;
- Further strengthening the position as the export hub for HMC;
- They entered into the India EV market in 2019 through the launch of KONA EV and launched the IONIQ 5 EV passenger vehicle model in 2023.
- According to the CRISIL Report, their market share in EVs was 1.1%, 2.0%, 1.7%, 0.7% in the three months ended June 30, 2024, Fiscals 2024, 2023 and 2022, respectively
- EV market shares of players in India
| company | 3m 2025 | 2024(12) | 2023(12) | 2022(12) |
| Tata Motors | 65.30% | 70.60% | 81.50% | 84.60% |
| MG | 18.40% | 12.80% | 9.60% | 11.20% |
| Mahindra | 7.50% | 6.70% | 1.00% | 0.80% |
| Hyundai | 1.10% | 2.00% | 1.70% | 0.70% |
| BYD | 2.50% | 2.00% | 2.30% | 0.20% |
| Others | 5.20% | 5.90% | 3.90% | 2.50% |
- PE ~25.6 times of FY24 EPS
- Peers
| Company/ FY24 figures | CMP Rs. | Revenue Rs. Cr | Net Profit Rs. Cr | NPM (%) | PE | Macp/sales | RONW % |
| Hyundai | 1,960.0 | 69,829 | 6060 | 8.7% | 26.3 | 2.28 | 56.82% |
| Maruti | 12,777 | 1,41,858 | 3,952 | 2.8% | 27.3 | 3.03 | 15.75% |
| Tata Motors | 931 | 4,37,928 | 31807 | 7.3% | 10.1 | 0.31 | 36.98% |
| Mahindra & Mahindra | 3,134 | 1,38,279 | 12,270 | 8.9% | 35.3 | 2.74 | 17.02% |
- Maruti is the best peer to compare as TAMO, M&M have other vehicles too.
- Maruti’s enpoys a 41.1% share, Hyundai Motor Company is enjoying 14.6% domestic market share in Q1FY25, followed by Tata Motors’ 13.5% and M&M’s 12.2%.
- HMI is debt-free.
- Focus on continued premiumisation of the passenger vehicle portfolio.
- This is reflected by the fact that the contribution of passenger vehicles with an ex-showroom ASP (a v sale [price) greater than ₹10 Lacs to Hyundai’s domestic sales increased from 43.42% in FY22 to 48.55% in FY24 and stood at 46.86% in 3QFY24.
- The company has established “Hyundai” as a trusted brand in India. The 8 passenger vehicle models that have received this good acceptance and accolade are i10 (2008), Grand i10 (2014), Elite i20 (2015), Creta (2016), Verna (2018), Venue (2020), i20 (2021) and Exter (2024).
- Their EV IONIQ 5 also won the Green Car of the Year award in 2024.
- Hyundai commands a 35% market share in the SUV segment and about 15% share in sedans, It flagship product ‘Creta” is holding a 38% share in the mid-size SUV sub-segment. Share of SUVs rose from 52% of the revenue in FY22 to 63% in FY24.
- Hyundai is expanding its manufacturing operations with the recent acquisition of a manufacturing plant in Talegaon, Maharashtra hich is expected to commence commercial operations partly in the second half of FY26.Hyundai Motor India acquired General Motors India’s Talegaon Plant in Maharashtra as part of its expansion strategy. The acquisition boosts Hyundai’s cumulative production capacity to 1 million units.
- As a key part of the Hyundai Motor Group, they gain early access to global trends in automotive, technologies and features.
- Hyundai’s has invested close to $5 billion to date in India , and plans additional $4 billion investment over the next decade.
- I intend to apply in Hyundai Motor IPO. Will do so on Day 2/3 after gauging the response to the IPO. Even as issue appears fully priced, the company is poised for bright prospects post completion of its ongoing expansions, could attract significant global investor interest. Aided by consistent growth in the long run considering its new launches, strong brand recall and focus on premiumization. Market sentiments undergo fast swings but at this juncture even moderate listing gains look difficult. On plus side, HMI in coming period is a potential Nifty/Sensex entrant.
- Hyundai Motor India is valued 25.6x PE while its parent HMC in foreign markets command merely PE of around 5X. This is due to better growth prospects in India. HMI
- GMP as reported on social media has been fluctuating a lot between Rs. 45-200 and presently is at a low.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.