Hyundai Motor India IPO Preview

• Hyundai Motor India is getting ready to complete its IPO in 2H 2024. Hyundai Motor India plans to offer up to 142.2 million shares (17.5% stake) to investors.

• Hyundai Motor (005380 KS) currently owns a 100% stake in Hyundai Motor India. The IPO of Hyundai Motor India could raise as much as US$3 billion.

• If Hyundai Motor India (HMI) is valued at US$25 billion and HMC sells a 17.5% stake in the company, HMC's remaining stake in HMI would be worth nearly US$21 billion.

Hyundai Motor India is getting ready to complete its IPO in 2H 2024. Hyundai Motor India plans to offer up to 142.2 million shares (17.5% stake) to investors in this IPO which could be the biggest ever IPO in India. Hyundai Motor (005380 KS) currently owns a 100% stake in Hyundai Motor India. The IPO of Hyundai Motor India could raise as much as US$3 billion.

Previously, India's Life Insurance raised US$2.46 billion in 2022, representing the largest amount of capital raised by an Indian company in an IPO. Most likely, the IPO of Hyundai Motor India could get completed in 2H 2024.

Hyundai Motor India Company Background

Hyundai Motor India mainly makes passenger vehicles and parts. The company's current vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs. From 1998 to 31 March 2024, the company has cumulatively sold nearly 12 million passenger vehicles in India and through exports. The company has been India's largest exporter of passenger vehicles from FY 2005 to the first 11 months of FY 2024.

Hyundai Motor India has been the second largest auto OEM in the Indian passenger vehicles market since FY09 (in terms of domestic sales volumes). In CY2023, Hyundai Motor India was among the top three contributors to HMC’s global sales volumes, and its contribution to HMC’s sales volumes has increased from 15.48% in CY2018 to 18.19% in CY2023.

The company's main manufacturing facility is located in Chennai. The company's Chennai Manufacturing Plant was HMC's first global integrated manufacturing plant outside Korea. The Chennai Manufacturing Plant had a production capacity of 824,000 units as of March 31, 2024. Leveraging Hyundai Autoever, HMC’s “smart factory” platform, we are able to produce flexibly customised passenger vehicles and parts using automated manufacturing processes.

The Chennai Manufacturing Plant was one of India’s largest single location passenger vehicle manufacturing plants in terms of production capacity for CY2023. The company's manufacturing operations are highly automated, and the Chennai Manufacturing Plant is optimised to manufacture our full range of 13 passenger vehicle models.