Hyundai Motor India IPO

Retail and HNI Applications

The retail portion of the Hyundai Motors IPO consists of not less than 49,495,705 equity shares of face value of ₹ 10. Not less than 35% of the net offer is for retail individual bidders.

Promoter Information

Hyundai Motor Company is the promoter selling shareholder in this IPO. As per the company's Red Herring Prospectus, the promoter i.e. Hyundai Motor Company holds 812,541,100 equity shares of face value of ₹ 10 each. This includes 100 equity shares each held by Wangdo Hur, Kuen Han YI, Unsoo Kim, Jae Wan Ryu, Daeick Kim and Jong Hoon Lee.

IPO Objectives

The company will not receive any proceeds from the offer. All the offer proceeds will be received by the promoter-selling shareholder after the deduction of offer-related expenses and relevant taxes. The company expects listing the equity shares will enhance its visibility and brand image and provide liquidity and a public market for equity shares in India.

Anchor Investor Information

The bidding for anchor investors will start on October 14 and will be completed on the same day. 50% of the equity shares allotted to anchor Investors under the Anchor Investor Category shall be locked in for 90 days from the date of allotment. The remaining 50% of the equity shares allotted to anchor investors in the Anchor Investor Category shall be locked in for 30 days from the date of allotment.

IPO Registrar and Book Running Lead Managers

KFin Technologies Limited is the IPO registrar of the Hyundai IPO. The book running lead managers include:

• Kotak Mahindra Capital Company Ltd
• Citigroup Global Markets India Private Limited
• HSBC Securities and Capital Markets (India) Private Limited
• J.P. Morgan India Private Limited
• Morgan Stanley India Company Private Limited

Business model

The company’s business model is founded on these five fundamental pillars:

Strong parentage of Hyundai Motor Group

Hyundai Motor India Ltd is a part of the Hyundai Motor Group and has its support in many aspects of its operations including R&D, design, product planning, quality control, marketing and distribution, etc.

Advanced technology

The company deploys a technology that is integrated across its operations. As a key part of the Hyundai Motor Group, it gains early access to global trends in automotive technologies and features.

Hyundai brand

The company has established Hyundai as a trusted brand in India, as evident from the 50 awards it received for the Hyundai brand and products in fiscal 2024 alone.

Localisation

Under its localised supply chain ecosystem, the company sources the majority of parts and materials from suppliers based in India.

Win-win approach

The company aims to build long-term relationships with all its stakeholders and create sustained value by following a win-win approach.

Growth trajectory

Since 1998 and up to March 31, 2024, Hyundai Motor India Ltd cumulatively sold nearly 12 million passenger vehicles in India and through exports. The company primarily sells passenger vehicles in India through its large dealer network across urban and rural India.

Its total sales outlets stood at 1366 as of December 31, 2023, as against 1282 as of March 31, 2022. As of December 31, 2023, the company was operating through 82 international distributors outside India. In CY2023, the company ranked among the top three contributors to HMC’s global sales volumes. Its contribution to HMC’s sales volumes increased from 15.48% in CY2018 to 18.19% in CY2023.

Market position

Hyundai Motor India Ltd has been the second largest auto OEM in the Indian passenger vehicles market since fiscal 2009. The company believes its current market position is because of:

• Its wide product offerings, stakeholder relationships and operations
• The strong Hyundai brand in India
• Its ability to leverage new technologies to enhance operational and manufacturing efficiency
• Its ability to expand into new businesses, such as EVs, through innovation

The company is committed to investing in R&D and new passenger vehicle launches in order to further strengthen its market position and improve the attractiveness of its passenger vehicles to customers.

Hyundai IPO Risk Factors

• Hyundai Motor India depends on a limited number of suppliers for parts and materials. Any interruption in the availability of parts and materials could adversely affect their operations.

• Increases in the prices of parts and materials required for their operations could hurt their business.

• The company, one of their subsidiaries and their promoters are involved in outstanding legal proceedings and any adverse outcome in any of these proceedings may hurt their business.

Key Strategies of Hyundai Motor India

• Leverage Hyundai Motor India’s deep understanding of consumer preferences to successfully expand their passenger vehicle portfolio

• Calibrate manufacturing capacity expansion and efficient capital allocation

• Focus on increasing EV market share

Conclusion

Hyundai Motor India is an exciting prospect for potential investors thanks to its global research facilities that gives them immediate access to the latest trends, technologies and Features and its position as the second largest OEM in India. However, ruthless competition in the sector and other factors can pose a challenge for the global conglomerate. If you want to invest in the IPO, ensure you do your homework and asses the risks and challenges thoroughly.