Hyundai Motors IPO: The automotive industry is buzzing with excitement as Hyundai Motor Co prepares to launch its highly anticipated IPO in India.
This move is set to make waves in the market, with Hyundai Motor India, the company’s local subsidiary, aiming to go public.
The IPO has caught the attention of investors and industry experts alike, as it promises to shake up the competitive landscape of the Indian automotive sector.
Hyundai’s IPO Approval and Valuation
Hyundai Motor India Limited (HMIL) has received the green light from the Securities and Exchange Board of India (SEBI) for its highly anticipated initial public offering (IPO).
The company plans to offer up to 142,194,700 equity shares, representing 17.50% of its total equity share capital. This IPO is structured as an offer for sale by Hyundai Motor Company, the promoter and selling shareholder.
The valuation of Hyundai’s IPO has been a topic of much discussion. Initial estimates suggested a potential valuation of around INR 251.30 billion, which would make it the largest IPO in India’s history, surpassing the record set by LIC in 2022.
However, recent adjustments have led to a revised valuation range of INR 2094.14-30 billion.
Despite these changes, Hyundai’s strong brand recognition, feature-rich products, and global capabilities continue to make it an attractive prospect for investors.
The company’s projected profit of approximately INR 60311.31 million for FY24 further adds to its appeal in the competitive Indian automotive market.
Key Details of the Offering
Hyundai Motor India Limited’s IPO involves offering up to 142,194,700 equity shares, each with a face value of ₹10. This represents 17.50% of the company’s total equity share capital post-IPO. The offering is structured as a pure Offer for Sale (OFS) by the promoter-selling shareholder, Hyundai Motor Company.
The exact price range and minimum bid size will be determined in consultation with the Book Running Lead Managers (BRLMs).
These details will be published in national newspapers in English, Hindi, and Tamil at least two working days before the IPO opening date. Several global and domestic financial institutions are advising on this IPO, including Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley.
The company will not receive any proceeds from the sale, as all proceeds will go to the Promoter Selling Shareholder after deducting offer-related expenses and taxes.
Hyundai’s Market Position in India
Hyundai Motor India Limited (HMIL) has a strong foothold in the Indian automotive market, holding the position of the second-largest carmaker with a 15% market share.
The company offers a diverse range of vehicles, including hatchbacks, sedans, SUVs, and electric vehicles. Hyundai’s success in India stems from its reputation for producing reliable, feature-rich, and stylish vehicles at competitive prices.
The brand’s strength lies in offering innovative features and modern designs that cater to diverse customer preferences.
Hyundai’s product lineup in India includes popular models such as the Creta, Venue, and Verna, which have contributed significantly to its sales figures.
The company has also made strides in the electric vehicle segment, with models like the Kona Electric and IONIQ 5 available in the market.
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