Hyundai Motor IPO has opened for subscription on October 15, 2024 and will close on October 17, 2024. The allotment for the Hyundai Motor IPO is expected to be finalized on Friday, October 18, 2024. It is planned to list on the BSE and NSE with a tentative listing date set for Tuesday, October 22, 2024. Hyundai Motor IPO is a book built issue of Rs 27,870.16 crores. The issue is entirely an offer for sale of 14.22 crore shares, therefore the company will not receive any proceeds from the sale.
The IPO’s price band is set between Rs. 1865 to Rs. 1960 per share. Applicants are required to buy minimum of 7 shares to qualify for the offer. Retail investors are expected to invest a minimum of Rs. 13,720. Additionally, employees of Hyundai Motors will enjoy a discount of Rs. 186 per share.
Established in May 1996, Hyundai Motor India Limited is a subsidiary of the Hyundai Motor Group, ranking as the third-largest original equipment manufacturer (“OEM”) globally in terms of passenger vehicle sales. As of March 31, 2024, the company has successfully sold nearly 12 million passenger vehicles in India, in addition to exports.
The company specializes in the production and distribution of four-wheeler passenger vehicles, including models such as sedans, hatchbacks, SUVs, and electric vehicles (EVs). By December 31, 2023, Hyundai Motor India had established partnerships with 363 dealer companies for distribution and sales across India. Holding a 15% market share in India and boasting leading EBITDA margins of 13.8% in the first quarter of the fiscal year 2025, Hyundai is well-positioned for continued expansion.
Let’s now examine the financial performance of the company. Hyundai Motors India Ltd. has demonstrated a revenue and profit after tax growth rate of 19% CAGR and 48% CAGR over the past three years.
The company maintains a low debt position, with a debt to equity ratio below 0.1, and has an average return on equity of 27% over last 3 years (source - screener). At the upper end of the price band, this IPO is available at a P/E ratio of 26.3, indicating it is fairly valued.
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