Hyundai Motor India Limited (HMIL), a subsidiary of Hyundai Motor Group, is planning a major initial public offering (IPO) in India. Here’s a summary of the key details and analysis to help you understand the potential investment opportunity:

Timeline

IPO Open Date:	NOT ANNOUNCED YET
IPO Close Date:	NOT ANNOUNCED YET
Basis of Allotment:	NOT ANNOUNCED YET
Refunds:	NOT ANNOUNCED YET
Credit to Demat Account:	NOT ANNOUNCED YET
IPO Listing Date:	NOT ANNOUNCED YET

About Company

Hyundai Motor India Limited (HMIL) is a wholly-owned subsidiary of Hyundai Motor Company, headquartered in South Korea. Established in 1996, HMIL has grown to become the second-largest car manufacturer in India. Here’s a detailed look at the company:

Operations:

• Manufactures passenger cars across various segments (sedans, hatchbacks, SUVs) at two plants in India (Gurgaon and Chennai).
• Sells cars through a vast network of dealerships across India.
• Also offers after-sales service and spare parts through its dealership network.

Products:

• Offers a diverse product portfolio catering to a wide range of customer preferences and budgets.
• Popular models include:
  • Grand i10 NIOS (hatchback)
  • Aura (sedan)
  • Creta (SUV)
  • Venue (compact SUV)
  • Kona Electric (electric SUV)
• Recently entered the electric vehicle (EV) segment with the Kona Electric and is committed to expanding its EV portfolio.

Market Position:

• Holds a strong second position in the Indian car market with a significant market share.
• Enjoys brand recognition and customer loyalty due to its focus on quality, design, and features.
• Established dealer network ensures wide reach and accessibility for customers.

Future Outlook:

• Aims to capitalize on the growing Indian car market, driven by rising disposable incomes and increasing demand for personal transportation.
• Plans to expand its electric vehicle (EV) portfolio to align with government initiatives promoting electric mobility.
• Focuses on innovation and developing new models to cater to evolving customer preferences.

Official Website: Visit Here

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Objective

• Capital Raising: Hyundai aims to raise funds for expansion plans, potentially including setting up a battery pack assembly unit and expanding its electric vehicle (EV) business in India.
• Brand Visibility: The IPO will increase brand awareness and potentially enhance Hyundai’s valuation in the Indian market.
• Liquidity for Investors: Existing shareholders can exit their investment through the OFS component of the IPO.

POSITIVE

• Market Leader: Hyundai is the second largest carmaker in India with a strong brand presence and established dealer network, giving them a significant advantage in a competitive market.
• Diverse Product Portfolio: They offer a wide range of cars across various segments, catering to a broad customer base and potentially mitigating risk from fluctuations in any single segment’s popularity.
• Focus on Growing Segments: Their focus on popular SUV segments like Creta and Venue aligns well with the growing demand in the Indian market.
• Entry into Electric Vehicles: Hyundai has already launched electric vehicles and plans to expand their EV portfolio, positioning them well for the future and government initiatives promoting electric mobility.
• Potential for Growth: The Indian car market is expected to experience continued growth, driven by rising disposable incomes and increasing demand for personal transportation, which could benefit Hyundai.
• Brand Visibility and Liquidity: The IPO itself will increase brand awareness and potentially enhance Hyundai’s valuation, while existing shareholders can gain liquidity through the Offer for Sale component.

NEGATIVE

• Dependence on Single Market: A significant portion of Hyundai’s revenue comes from India, making them vulnerable to economic fluctuations within the country. An economic slowdown could significantly impact sales and profitability.
• Fierce Competition: The Indian car market is fiercely competitive with established players like Maruti Suzuki and emerging players like Tata Motors. Hyundai will need to maintain a competitive edge.
• Rising Input Costs: Fluctuations in the prices of raw materials like steel can impact Hyundai’s production costs and profitability, squeezing margins.
• Shifting Consumer Preferences: Changes in consumer preferences towards alternative mobility solutions like ride-sharing or electric scooters could pose a challenge to traditional car manufacturers.
• Regulatory Environment: Evolving regulations related to emission standards and safety norms can increase production costs and require adaptation, impacting profitability.
• Valuation: Without a price band announcement yet, it’s difficult to assess if the IPO is priced fairly. A high valuation might not be attractive for investors.

So,how does Hyundai Motor India IPO Fare in Terms of Financials ?

Financial Details

Period Ended	31 Dec 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets
Revenue
Profit After Tax
Net Worth
Reserves and Surplus
Total Borrowing
Amount in ₹ Crore

FINANCIAL REVIEW

Positives:

• Updated Soon

Hyundai Motor India IPO Review & Details IPO Valuation :

Earning Per Share (EPS):	₹  per Equity Share
Price/Earning P/E Ratio:
Return on Net Worth (RoNW):	%
Net Asset Value (NAV):	₹ per Equity Share

Hyundai Motor India IPO – SWOT Analysis

Strengths

• Market Leader: Hyundai is the second largest car manufacturer in India, with a strong brand presence and established dealer network.
• Diverse Product Portfolio: They offer a wide range of cars across various segments (sedans, hatchbacks, SUVs), catering to a broad customer base.
• Focus on SUVs: The growing SUV segment in India positions Hyundai well, with popular models like Creta and Venue.
• Entry into Electric Vehicles: Hyundai has launched electric vehicles like the Kona Electric and is committed to expanding its EV portfolio, aligning with the government’s push for electric mobility.

Weaknesses

• Dependence on Indian Market: A significant portion of Hyundai’s revenue comes from India, making them vulnerable to economic fluctuations within the country.
• Competition: The Indian car market is fiercely competitive, with established players like Maruti Suzuki and emerging players like Tata Motors vying for market share.
• Rising Input Costs: Fluctuations in the prices of raw materials like steel can impact Hyundai’s production costs and profitability.

Opportunities

• Growing Indian Car Market: The Indian car market is expected to experience continued growth, driven by rising disposable incomes and increasing demand for personal transportation.
• Government Support for EVs: Government incentives and policies promoting electric vehicles present an opportunity for Hyundai to expand its EV market share.
• Export Potential: Hyundai can leverage its established manufacturing base in India to increase exports to neighboring countries.

Threats

• Economic Downturn: An economic slowdown could decrease demand for cars and impact Hyundai’s sales and profitability.
• Shift in Consumer Preferences: Changes in consumer preferences towards alternative mobility solutions like ride-sharing or electric scooters could pose a challenge.
• Stringent Regulations: Evolving regulations related to emission standards and safety norms can increase production costs and require adaptation.

COMPETITIVE ANALYSIS: MARKET PEERS

Here are some of the key market peers of Hyundai Motor India IPO :

Peers:

Hyundai Motor India IPO GMP

• Grey market premium as on DD-MM-YYYY = Rs / Share

Disclaimer:

• IPO Grey Market Premium (Hyundai Motor India IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Hyundai Motor India IPO

🔴 Live Subscription Status 🔴

DD/MM/YYYY 10:00 AM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)
Non Institutional Investors(NIIs)
Retail Individual Investors(RIIs)
Total

FINAL TAKEAWAY

✅ Updated Soon

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