Gurugram based Automobile Company Hyundai Motor India files DRHP with SEBI for the proposed IPO; Key Details here

Hyundai Motor India is into Manufacturing Automobile and is looking raise funds through Offer for Sale

Hyundai Motor India. Offer of Sale of 142,194,700 Equity Shares through public issue IPO

Hyundai Motor India IPO: Hyundai Motor India Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Promoters of Hyundai Motor India are Hyundai Motor Company and holds 100% stake in the company.

Key Details:

• Initial Public Offer comprising of a Offer for Sale of upto 142,194,700 Equity shares.
• Kotak Mahindra Capital, Citigroup Global Markets, HSBC Securities and Capital Markets, JP Morgan India, Morgan Stanley India Company have been appointed as lead merchant bankers for the proposed IPO.
• It has appointed KFin Technologies Ltd. as Registrar and Share transfer Agent.
• Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Equity Shares offer-for-sale (OFS) of up to 142,194,700 equity shares by Promoter company Hyundai Motor Company is looking to offload upto 142,194,700 Equity Shares via OFS...

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Objects of the issue:
1) carry out the OFS of up to 142,194,700 Equity Shares of face value of ₹ 10 each by the Promoter Selling Shareholder, and 2) achieve the benefits of listing the Equity Shares on the Stock Exchanges..

About Company:
Established in 1996, Hyundai Motor India is a part of the Hyundai Motor Group, the third largest auto OEM in the world. It manufactures and sell four-wheeler passenger vehicles and parts, such as transmissions and engines in India and outside India. Currently vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs. Since 1998 and up to March 31, 2024, company have cumulatively sold nearly 12 million passenger vehicles in India and through exports. It has been India’s largest exporter of passenger vehicles from Fiscal 2005 to the first 11 months of Fiscal 2024, having exported the highest cumulative number of passenger vehicles for the same period. Company has currently installed capacity of 770,000 units per annum with utilisation capacity of 97.3% in 9MFY24 (94.45% in FY23).

• Share of revenue during 9MFY24 from India/Africa/Latin America/Middle East and Europe/Others at 76.3%/3.6%/7.2%/12%/0.9% (v/s FY23 at 76.6%/6.2%/9.2%/6.4%/1.6% and FY22 at 78.8%/6.3%/7.8%/5.6%/1.5%)
• Utilisation capacity during 9MFY24 at 97.3% (v/s 94.45%/79.96% in FY23/FY22)
• Sales outlets during 9MFY24 at 1,366 (v/s 1336/1282 outlets in FY23/FY22)
• Service outlets during 9MFY24 at 1550 (v/s 1498/1422 in FY23/FY22)
• Share of Domestic SUV in 9MFY24 at 62.42 units (v/s 53.16%/52.01% in FY23/FY22)
• Sales volume during 9MFY24 at 584,159 units (v/s 720,565/610,760 units in FY23/FY22
• Share of Exports during 9MFY24 at 23.67% (v/s 21.24%/21.16% in FY23/FY22)

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About Industry:
The Indian PV industry witnessed growth reaching a high of 3.4 million vehicle sales in Fiscal 2019. This growth until Fiscal 2019 was led by continuous improvement in GDP, increase in disposable incomes and new model launches, stable cost of vehicle ownership, as well as rising traction for SUVs. Between Fiscals 2019 and 2024, India’s domestic PV sales volume rose at 5% CAGR. This growth was despite the sales contraction (at 10% CAGR) witnessed during Fiscals 2019 to 2021. From the low base of Fiscal 2021, passenger vehicle sales bounced back and grew at a healthy pace to reach 3.9 million vehicles in Fiscal 2023. In Fiscal 2024, the industry is estimated to have grown by 8.4% to reach the historic high of 4.2 million units.

Source: SEBI, BSE, NSE, DRHP, Hyundai Motor India, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.