IPO Note

Hyundai Motors India LTD.

11th Oct
2024

Hyundai Motors India Ltd (HMIL) is a wholly owned subsidiary

of Hyundai Motor Company (HMC) and is the second largest Purpose of the Offering:
car manufacturer in India. Hyundai Motors India Ltd operates  It is a 100% offer for sale by the Promoter Selling
with a network of 1,366 sales points and 1,550 service points Shareholder to achieve the benefits of the listing of equity
across India. HMIL is India’s first smart mobility solutions and the Company will not receive any proceeds from the
provider and car exporter since its inception in India. It offer from sale.
currently has 12 car models with its fully integrated state-of-
the-art-manufacturing plant near Chennai. HMIL has two
manufacturing plants in Irungattukottai and Sriperumbudur, IPO Details:
both in Tamil Nadu.
Type of
issue: Offer for sale of 142.2 Mn shares

Issue opens: 15-10-2024 (Tue)

Issue closes: 17-10-2024 (Thu)

Price Band: 1865–1960 (₹

Bid Lot: /share)
Total Issue Size: 7
Offer For Sale: 142.2 Mn Shares
Issue Size: 142.2 Mn Shares
Face Value: 27,870 (₹ Cr.)
Market Cap post issue (₹ ₹ 10
Strengths and Opportunities: Cr.): 1,16,600(at upper
band)
 Expansion of Plant: HMIL plans to increase its production
capacity by expanding its manufacturing capabilities in
India with the recent acquisition of manufacturing plant in
Talegaon, Maharashtra.
 Electrification and EV Market: Hyundai Motors India Ltd is
Applicable Lot Sizes:
taking steps to explore opportunities in EV (Electric Vehicle) Quota Lots Shares Amount
Sector and to develop an EV supply chain and
manufacturing capabilities through EV parts localisation
Retail (Min) 1 7 ₹ 13,720
and developing an EV platform.
Retail (Max) 14 98 ₹ 1,92,080
Weaknesses and Risks: Shareholder (Max) 14 98 ₹ 1,92,080
 Dependent on limited suppliers: The company is dependent S-HNI (Max) 72 504 ₹ 9,87840
on a limited number of suppliers for the parts and materials B-HNI (Min) 73 511 ₹
which are required for operations. Any interruption in the 10,01,560
availability of the parts and materials could affect the
operations.
 Competitive Landscape: Domestic PV industry is an Should you apply?
oligopolistic industry with few big players dominating the  Fair Valuation: The Company appears to be reasonably
entire industry. Maruti Suzuki and Tata Motors are the peers valued, providing a balanced investment proposition.
who leads the PV industry in terms of domestic sales Investors may find the valuation to be in line with the
volumes and market share. company's financial performance and potential growth

 Strong Historical Performance of Parent Company: The

Company is a part of the Hyundai Motors Group, the third
largest auto original equipment manufacturer (OEM) in the
world based on passenger vehicle. The company is
engaged in manufacturing and selling cars.

 Potential for Listing Gains if allotted.

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