India’s biggest IPO: What’s there to know to know about the Hyundai issue

Issue Size

The IPO will beryllium the largest stock offering successful the past of the Indian superior market. The institution has fixed the terms set of the IPO successful the scope of Rs 1,865 to Rs 1,960 per equity stock of the look worth of Rs 10, valuing the institution astatine astir Rs 1.5-1.6 lakh crore. It is besides offering a maximum worker discount of Rs 186 per equity share.

The allocation to anchor investors for the IPO is scheduled to instrumentality spot connected October 14, which volition adjacent connected October 17, with listing connected some NSE and BSE connected October 22.

Moving forward, HMI volition absorption connected some measurement and profitability led by improvements successful higher level of utilisation and localisation, its managing manager (MD) Unsoo Kim said astatine a property briefing Friday. Kim besides said India’s electrical conveyance (EV) marketplace is successful “the aboriginal signifier of electrification” but volition “grow powerfully and steadily by 2030”. According to him, HMI volition leverage entree to its genitor company’s EV and artillery technologies to make an EV ecosystem successful India.

“We are readying to motorboat 4 EV models crossed wide and premium segments, including our Creta EV successful Q4 this fiscal year. Also, we are localising the EV proviso chain, similar the artillery pack, drivetrain, etc. and we’re investing successful the EV charging infrastructure here,” Kim said.

Auto Sector Slowdown

In effect to concerns implicit a caller slowdown successful India’s car sector, HMI’s main operating serviceman (COO) Tarun Garg said determination was a 40 per cent summation successful registrations successful September implicit the erstwhile period citing Vahan data. Garg besides attributed sluggish maturation to precocious levels of maturation pursuing the Covid pandemic.

“On a broader level, the CAGR for the car manufacture has been 5%. However, station COVID, due to the fact that of the pent-up demand, manufacture saw a precise immense growth. As an industry, we grew by much than 20% successful 2022. Then, we grew by 9% successful 2023. So obviously, immoderate moderation volition ever happen. But that should not beryllium immoderate worrying factor,” helium said.

HMI, the 2nd largest automaker successful India aft Maruti Suzuki, volition beryllium the archetypal car steadfast to spell nationalist successful 2 decades aft Maruti Suzuki India Ltd’s listing successful 2003. The IPO volition surpass LIC’s IPO of Rs 21,000 crore successful 2022 arsenic India’s largest stock offering ever.

According to HMI’s Red Herring Prospectus (RHP) filed with the Securities and Exchange Board of India (SEBI), the institution sourced 78 per cent of parts and materials from wrong India successful FY24, beneath 82.5 per cent successful FY22. The stock of SUVs retired of the company’s full car income has risen to 63 per cent successful FY24, from 52 per cent successful FY22.

The stock of interior combustion motor (ICE) vehicles sold by the institution stood astatine 88.2 per cent successful FY24, followed by 11.5 per cent compressed earthy state (CNG) vehicles, and 0.3 per cent EVs. The stock of EVs has grown 10 times since FY22, erstwhile it was 0.03 per cent.

According to the company, since 1998 and up to March 31, 2024, it has cumulatively sold astir 12 cardinal rider vehicles successful India and done exports. It posted a full income of Rs 71,302 crore for FY24 and a nett of Rs 6,060 crore. The full income successful FY23 stood astatine Rs 61,436 crore and nett astatine Rs 4,709 crore.