Hyundai India IPO will open for public subscription next week and its shares will be listed on the exchanges on 22nd October.
Hyundai Motor India Ltd (HMIL) is set to make history next week with the launch of India’s largest initial public offering (IPO), targeting to raise a staggering Rs 27,870 crore. This will be the first IPO by an automaker in over two decades, since Maruti Suzuki’s listing in 2003, marking a significant moment for the Indian automotive industry.
As the country’s second-largest carmaker, Hyundai’s entry into the stock market will reshape the landscape, coming after its primary rival, Maruti Suzuki India, which has dominated the sector since its own listing.
Market Valuation
Maruti Suzuki, a large-cap firm, currently boasts a market valuation exceeding Rs 4 lakh crore. Its shares are trading at Rs 12,943.30 apiece on the National Stock Exchange (NSE).
Post the Hyundai India IPO, the company’s market valuation is expected to be around Rs 1.6 lakh crore, with the IPO price band set at Rs 27,870 crore.
Dividend Comparison
In terms of dividends, Maruti Suzuki currently offers a yield of 0.97 percent, having paid a final dividend of Rs 125 per share to its shareholders on August 2, 2024.
Hyundai Motor India, meanwhile, distributed a substantial dividend exceeding Rs 10,000 crore for the fiscal year 2024. It declared a special dividend of Rs 13,270 per share, amounting to a total payout of Rs 10,782.42 crore during FY24.
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Key Financials
Maruti Suzuki India Ltd reported a robust 47 percent year-on-year growth in net profit for Q1 FY25, reaching Rs 3,650 crore. The company’s revenue for the April-June quarter stood at Rs 35,531.4 crore, marking a 9.9 percent rise from Rs 32,326.7 crore in the same period last year. Its EBITDA saw a significant jump of 49.1% to Rs 4,448.3 crore, with operating margins expanding by nearly 350 basis points to 12.5%.
Hyundai Motor India, for the fiscal year ending March 2024, recorded a net profit of Rs 6,060 crore, a 28.7 percent increase from the previous year. Its revenue grew 15.8 percent, reaching Rs 69,829 crore, further solidifying its strong financial position ahead of the IPO.
Sales Performance
Maruti Suzuki registered a 2 percent year-on-year rise in total sales for September, clocking 1,84,727 units. However, its domestic passenger vehicle sales fell by 4 percent, recording 1,44,962 units compared to 1,50,812 units in the same month last year. Exports saw a 23% boost, with 27,728 units shipped in September.
On the other hand, Hyundai Motor India reported a 10 percent decline in total sales during September, selling 64,201 units compared to 71,641 units in the same period last year. Domestic sales dropped by 6 percent, while exports saw a sharper 25% fall to 13,100 units.
Face Value
Hyundai Motor India’s Draft Red Herring Prospectus (DRHP) states that its shares will have a face value of Rs 10 each. By comparison, Maruti Suzuki India shares have a face value of Rs 5.
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