Hyundai Motor India’s Initial Public Offering (IPO) is a monumental event in the Indian stock market, marking the largest IPO in India’s history. Investors are keenly observing the Hyundai IPO, with a strong focus on key financials, market performance, and Hyundai’s growth strategy, especially in the electric vehicle (EV) sector. This article provides an in-depth analysis of the Hyundai Motor India IPO, detailing everything investors need to know.
Hyundai Motor India Limited (HMI), incorporated in May 1996, is part of the global Hyundai Motor Group, the third-largest auto manufacturer worldwide by passenger vehicle sales. Hyundai’s diverse vehicle portfolio includes hatchbacks, sedans, SUVs, and electric vehicles (EVs). The company has also ranked as the second-largest vehicle exporter in India from April 2021 to June 2024.
HMI operates with an extensive service network of 1,377 sales outlets and 1,561 service outlets in 957 cities across India, making it the second-largest service network in the country.
Hyundai Motor India is actively expanding in the EV segment with models like the IONIQ 5, demonstrating its commitment to sustainable mobility. The company is investing in an EV battery assembly plant with an initial capacity of 75,000 battery packs annually by 2025, aligning with India’s push toward electric vehicles.
Hyundai operates two major manufacturing facilities in Chennai, with an annual capacity of 824,000 units, one of the company’s largest facilities outside Korea. To meet growing demand, Hyundai plans to expand capacity with the Talegaon plant, expected to be operational by 2026, raising the total capacity to 1.07 million units.
The IPO is an "offer for sale" (OFS), where existing shareholders are selling their stakes. The raised funds will go to these shareholders, not directly to Hyundai Motor India.
The IPO saw strong demand from institutional investors, indicating long-term confidence in Hyundai’s growth plans. However, retail investor participation was moderate, possibly due to high pricing.
Hyundai Motor India has displayed robust financial performance, supported by consistent growth in sales and profits.
Despite growth, the company’s recent investments in EV infrastructure and manufacturing capacity have also led to increased expenses.
Hyundai Motor India’s shares debuted on October 22, 2024, at ₹1,960 per share but saw an immediate decline:
The decline reflects concerns over high valuations and cautious sentiment among retail investors. Analysts note that Hyundai’s IPO was priced at a premium compared to competitors like Maruti Suzuki and Mahindra & Mahindra.
India’s automotive market is projected to grow significantly, with vehicle sales potentially reaching 20 million units by 2047. In FY 2024, passenger vehicle sales reached 4.2 million units, demonstrating resilience in the market.
| S.No. | Name | P/E | Market Cap (Cr) | ROCE % | NP Qtr (Cr) | Qtr Sales (Cr) | Div Yld % |
|---|---|---|---|---|---|---|---|
| 1 | Maruti Suzuki | 25.64 | 3,77,363.32 | 21.82 | 3,759.70 | 35,779.40 | 1.02 |
| 2 | Mahindra & Mahindra | 32.95 | 3,63,327.99 | 13.58 | 3,545.78 | 37,217.72 | 0.69 |
| 3 | Hyundai Motor India | 26.30 | 1,59,258.06 | 51.25 | 1,489.65 | 17,344.23 | - |
Hyundai’s ROCE of 51.25% is a strong indicator of its capital efficiency compared to peers.
Hyundai Motor India’s IPO offers a valuable opportunity for investors, especially those interested in India’s expanding automotive and EV market. Despite the initial price dip and high valuation, Hyundai’s long-term growth potential remains strong. Investors are advised to monitor market trends and Hyundai’s quarterly performance closely for optimal entry points.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making any investment decisions.