20-Jun-2024
2 mins read
Hyundai has officially filed a Draft Red Herring Prospectus (DRHP) with the SEBI for its forthcoming Initial Public Offering (IPO). The public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 4000 Crore of equity shares. The face value mentioned by the company is Rs. 10 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. So, when will the IPO come? The Application for public issue and subscription opening/closing dates and other important dates will be declared soon. However, the public issue price band at which you can bid will be declared soon.
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About Hyundai Motor
Hyundai Motor India Limited (HMIL), part of the Hyundai Motor Group, is preparing for its IPO. It is the second-largest auto OEM in India. Since 2009, HMIL has established a reputation for manufacturing reliable, feature-rich, and innovative vehicles, including sedans, hatchbacks, SUVs, and EVs. The most popular and loved Hyundai Motor Mid-size SUV running on Indian roads is "Creta". Since 1998, HMIL has sold nearly 12 million passenger vehicles in India and abroad. The company benefits from Hyundai Motor Group's extensive R&D capabilities and strong brand recognition, which have bolstered its market position and operational efficiency. HMIL's manufacturing facilities in Chennai and Talegaon are set to boost production capacity to over 1 million units annually.
Hyundai Motor India IPO Objectives
The company will not receive any proceeds from the public issue, as the Offer for Sale is proposed by the Selling Shareholders. Hyundai Motor Company will be entitled to their respective proportion of the proceeds from the Offer for Sale after deducting their portion of the related expenses and applicable taxes, as stated in the DRHP filed by the company.
Financials of the Company
For the 9-month period ending December 31, 2023, the company's revenue decreased by 13.5% compared to the year ended March 31, 2023, but increased by 10.1% compared to the year ended March 31, 2022. Profit After Tax (PAT) for the 9-month period also decreased by 6.9% from the year ended March 31, 2023, but increased by 51.1% compared to the year ended March 31, 2022. Total borrowing decreased by 32.3% from March 31, 2023, and by 31.2% from March 31, 2022.
Lead manager(s), Registrar of IPO & Promoter(s) of the Company
The IPO is managed by several giants those are Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd, J.P. Morgan India Private Ltd, Morgan Stanley India Company Private Ltd, which are the book-running lead managers of this public issue. KFin Technologies Ltd has been appointed as the registrar to manage this public offering, while the company's promoter is Hyundai Motor Company.
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