Can Hyundai's IPO succeed in a slow auto market?

livemint.com:

Subscribe to enjoy similar stories. Hyundai Motor India (HMI), the second-largest player in the Indian passenger vehicle market since FY09, is set to make history with its massive initial public offering (IPO) on Tuesday.

With shares priced between ₹1,865 and ₹1,960, apiece, it aims to raise a remarkable ₹27,870 crore but will not receive any proceeds from the offer as the promoter-selling shareholder will retain all proceeds. The issue will close on Thursday.

By offloading up to 17.5% of its stake in HMI, Hyundai's South Korean parent will not only raise significant funds but also mark its stock market debut outside its home country. While the passenger vehicle market is currently facing headwinds, is Hyundai's IPO a strategic gamble? With the beginning of the festivities, could the timing signal the beginning of a new growth chapter for the company, capitalizing on increased consumer sentiment and potential market rebound? As HMI prepares to gauge investor sentiment, a comprehensive SWOT analysis will offer crucial insights into its post-IPO trajectory and potential to redefine India's automotive landscape.

The company has demonstrated strong financial performance over the past few years. Its topline has grown steadily and witnessed a compound annual growth rate of nearly 20% over the past four years, while its bottomline expanded at an even faster pace, 48% during this period.

The company's profitability has been supported by strong operational efficiency: return on capital employed and operating margins have recorded a three-year median of 29% and 13%. Tarun Garg, chief operating officer of Hyundai Motor India further boasted of its market position at a recent press meeting: “We have consistently maintained our