Hyundai Motor India is set to launch its highly anticipated IPO on October 15, 2024. This IPO is expected to be the largest in India’s stock market history, surpassing major offerings like LIC and Paytm. Here are key details:
- Price Band: The shares will be offered in the range of ₹1,865 to ₹1,960 per share.
- Lot Size: Investors can apply for a minimum of 7 shares and in multiples thereof.
- Issue Size: The IPO is an offer-for-sale (OFS) of up to 14.21 crore shares, entirely by Hyundai’s parent company. At the upper price band, Hyundai could raise approximately ₹27,856 crore.
- Valuation: Hyundai Motor India is valuing itself at ₹1.59 lakh crore ($19 billion).
- Purpose: Since the IPO is an OFS, the proceeds will go to the parent company, Hyundai Motor Co., South Korea, and not to the Indian subsidiary.
Current Business and Future Business Prospects:
- Hyundai Motor India Ltd. (HMIL), a subsidiary of South Korean automaker Hyundai Motor Company, is a dominant player in India’s automobile industry. Established in 1996, HMIL has grown significantly and is now the second-largest car manufacturer in India, known for its innovative design, quality, and technology-driven vehicles. The company’s flagship models include the Hyundai Creta, Venue, Verna, and the recently launched Exter, all of which have performed exceptionally well in the Indian market.
Current Business Performance
- In 2024, Hyundai continues to enjoy robust demand, especially in the compact SUV segment. The Hyundai Creta remains one of the best-selling SUVs in India, contributing significantly to the company’s market share. The newly launched Hyundai Exter has received a strong response due to its modern features and affordability. Hyundai also leads in electric vehicles (EVs) with its Kona Electric and the upcoming Ioniq 5, indicating the company’s focus on sustainable mobility.
- In terms of financial performance, HMIL has seen steady growth despite challenges like rising input costs and global supply chain disruptions. Hyundai’s monthly sales consistently rank among the top car manufacturers in India, often surpassing 50,000 units domestically. The company also benefits from its strong export division, exporting vehicles to over 80 countries, positioning it as a critical export hub.
- Future Business Prospects
- Hyundai Motor India is well-positioned for future growth, driven by its focus on EVs, advanced technology, and expanding product lineup. The company’s aggressive investments in electric vehicle infrastructure and R&D showcase its commitment to the Indian government’s push for EV adoption. Hyundai has plans to launch more EV models in India by 2025, including mass-market options.
- Moreover, the increasing demand for SUVs, particularly compact and mid-sized models, offers Hyundai opportunities to further strengthen its market position. The company’s strong dealer network, manufacturing capacity, and plans to introduce hybrid models will also support its growth. Hyundai’s future in India looks promising, with a balanced focus on innovation, sustainability, and customer-centric offerings.
This IPO marks Hyundai Motor India’s public market debut, making it the first major auto company to go public in India since Maruti Suzuki in 2003.
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