Drumil Modi, Pune
It is nearly 20 years since India saw a carmaker getting listed on the stock exchange, and this time, it is a South Korean automaker, Hyundai Motor India.
The automaker aims to raise INR 278 billion by offloading a 17.5 per cent stake at a price band in the range of INR 1,865 to INR 1,960 per share.
The issue will be available for subscription between 15 October to 17 October 2024.
This will also make it the largest IPO (Initial Public Offering) in India to date, surpassing Life Insurance Corporation of India’s INR 210 billion IPO that debuted in May 2022; and the biggest IPO listing for 2024 in the world.
Hyundai Motor India will become the latest automaker in India to debut on the stock exchange, after Maruti Suzuki India’s debut in 2003.
What’s interesting to note is that the funds raised by the company’s parent company Hyundai Motor Group is then expected to be re-invested in the company. The exact quantum and timeline for this procedure is yet to be clarified.
The IPO comes at a time when the Indian stock market is seeing huge traction with a lot many new companies entering the foray. Hyundai Motor Group sees India as a huge growth market that not only contributes to 6 per cent of the company’s global revenues but also acts as a leading exporter for the Asian market.
The company has come a long way since it first introduced the Santro hatchback in 1998 and has made a prominent name for itself as the second-largest car maker in India for over two decades, along with being the largest passenger vehicle exporter.
In FY2024, the company reported wholesales of 777,876 units, which marks 13 per cent CAGR growth over FY2022 and FY2023; similarly, the average selling price has increased from INR 666,455 to INR 771,840; FY2024 revenue growth of 47 per cent over FY2022 and net income growing from INR 29,016 million to INR 60,600 million in FY2024 respectively.
Hyundai Motor India aims to deploy the new funds (potential investment from Hyundai Motor Group) towards building new products, investment in new technologies and R&D in the country.