Hyundai Motor India Limited IPO: A Closer Look
The much-anticipated Initial Public Offering (IPO) of Hyundai Motor India Limited (HMIL) is set to make waves in the Indian capital markets. As a subsidiary of the global automotive giant Hyundai Motor Company, HMIL’s IPO is expected to be one of the largest public offerings of the year.
Company Overview
Hyundai Motor India Limited is a leading player in the Indian automotive industry, known for its wide range of passenger vehicles, including sedans, hatchbacks, SUVs, and electric vehicles. The company has a strong market presence and a reputation for manufacturing reliable and innovative vehicles.
IPO Details
| Parameter | Details |
| IPO Dates | October 15-17, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹1865- ₹1960 per share |
| Lot Size | 7 Shares |
| Total Issue Size | ₹2,78,701.6 Mn |
| Listing Exchange | BSE, NSE |
| Promoter | Hyundai Motor Company |
IPO Objective
The primary objective of the HMIL IPO is to raise funds to support the company’s growth plans and expansion initiatives, including investments in research and development, manufacturing facilities, and marketing efforts.
Key Strengths of HMIL
- Strong Brand Reputation: Hyundai is a well-established and trusted brand in the Indian market.
- Wide Product Range: The company offers a diverse portfolio of vehicles to cater to different customer segments.
- Manufacturing Expertise: HMIL has a state-of-the-art manufacturing facility in Chennai with a strong focus on quality and efficiency.
- Technological Advancements: The company is committed to investing in research and development to stay ahead of the competition.
Potential Risks
- Competition: The Indian automotive market is highly competitive, with several established players.
- Supply Chain Disruptions: Dependence on global supply chains can expose HMIL to risks associated with geopolitical factors and economic downturns.
- Regulatory Changes: Changes in government policies or regulations related to the automotive industry could impact the company’s operations.
Peer Companies
The listed companies in India that engage in a business similar to HMIL include Maruti Suzuki India Limited, Tata Motors Limited, and Mahindra & Mahindra Limited.
Financial Performance
| Period Ended | Assets (INR Mn) | Revenue (INR Mn) | Profit After Tax (INR Mn) |
| 31 Mar 2024 | 26,3492.5 | 71,3023.3 | 6,0600.4 |
| 31 Mar 2023 | 345,733.42 | 603,075.80 | 47,092.50 |
| 31 Mar 2022 | 283,580.58 | 473,784.32 | 29,015.91 |
Should You Invest?
The decision to invest in the HMIL IPO depends on your individual investment goals and risk tolerance. While the company offers several attractive features, it’s essential to carefully consider the potential risks and conduct thorough due diligence before making an investment.
Key Factors to Consider
- Long-Term Outlook: Consider the company’s future growth potential in the Indian automotive market.
- Risk Tolerance: Assess your comfort level with the inherent risks associated with investing in IPOs.
- Investment Goals: Evaluate if this IPO aligns with your overall investment objectives.
Conclusion
Hyundai Motor India Limited’s IPO presents an opportunity for investors to participate in the growth of a leading player in the Indian automotive industry. However, it’s crucial to conduct thorough research and consider the associated risks before making an investment decision.
