Hyundai Motor India Gears Up for IPO: 10 Key Things to Know from DRHP

Hyundai Motor India is preparing for its Initial Public Offering (IPO), and here are ten key things to know from the draft red herring prospectus (DRHP):

1. IPO Size: The Hyundai Motor India IPO will be an offer for sale of 14.22 crore shares, each with a face value of ₹10.
2. IPO Dates: The dates for the IPO have not been announced yet. The shares will be listed on both the BSE and NSE.
3. IPO Price Band: The price band for the IPO is yet to be revealed.
4. Lead Managers and Registrar: The book-running lead managers for the IPO are Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities & Capital Markets, J.P. Morgan India, and Morgan Stanley India. Kfin Technologies Limited is the registrar.
5. Key Risks: Hyundai Motor faces risks such as rising prices for parts and materials, which could affect its business and profitability. The company relies on a small group of suppliers, so any disruption in the supply chain could impact its operations.
6. Objectives of the Issue: The proceeds from the offer will go to the selling promoter, after deducting costs and taxes. Hyundai Motor will not receive any money from the IPO.
7. Financials: For the nine months ending December 31, 2023, Hyundai Motor reported revenues of ₹32,488.34 crore and a net profit of ₹4,382.87 crore, with a profit margin of 13.5%.
8. Competitors: Hyundai Motor’s main competitors in the market include Maruti Suzuki, Tata Motors, and Mahindra & Mahindra.
9. About Hyundai Motor: Hyundai Motor India is part of the Hyundai Motor Group, the world’s third-largest car manufacturer by sales. Founded in May 1996, the company is known for producing innovative, reliable four-wheeler passenger vehicles and also makes items like engines and transmissions.
10. Grey Market Premium (GMP): The GMP for Hyundai Motor stands at ₹411, indicating that the market expects the shares to list at a ₹411 premium, though the IPO price is yet to be announced.

These details provide an overview of what to expect from the upcoming Hyundai Motor India IPO.