IPO NOTE

HYUNDAI MOTOR INDIA SUBSCRIBE Issuer

Transaction Type
HYUNDAI MOTOR INDIA LIMITED
Offer for sale aggregating upto Rs 278.7 Bn

LIMITED
India’s 2nd largest player in the PV segment Issue Open / Close
Type of Offering
15-October-2024 / 17- October -2024
Offer for Sale
Summary Total Offer Size Rs. 265,193-278,702 Mn
Price Band Rs.1,865-1,960/Sh
HMIL, the second-largest player in the Indian PV market with a 15-18% market
Bid Lot 7 Equity Shares and in multiples thereafter
share, plans to invest Rs 200 Bn over the next decade to boost production and Percentage of QIB: 50%;

increase battery capacity to 75,000 units annually by FY25. With a production Offer Size (Allocation) NII: 15%;

Retail: 35%;
capacity of 824,000 units, HMIL operates through 364 dealers and 1,377 sales
Objective The issue is a pure offer for sale and Hyundai motor,
points in India, it has the highest dealer satisfaction score at 852. The company Korea will be the sole recipient
also exports to Latin America, Africa, and the Middle East, positioning itself well
to capitalize on premiumisation and EV demand trends. Share holding pattern (%)
Pre-Issue Post-Issue
Key Investment Rationale
Promoter 100.00 82.50
 Premiumisation and Market Adaptation: With its SUV focused portfolio, HMIL
Public - 17.5
is looking to continue encashing on the changing consumer preferences like Total 100.00 100.00
more connectivity options, bigger vehicles, safety, etc. which should help in
market share improvement and higher realisation (7-8% CAGR over FY19-FY23), Financial Snapshot
and grow ahead of the industry going ahead. HMIL plans to focus on both (Rs mn) FY22 FY23 FY24 1Q-FY25*
domestic and exports market with its comprehensive product portfolio, new Revenue 473,784 603,076 698,291 173,442
product launches, leveraging local manufacturing and focusing on cleaner fuel EBITDA 54,861 75,488 91,326 23,403
technologies. EBITDA Margin(%) 11.6 12.5 13.1 13.5
Adj.PAT 29,016 47,093 60,600 14,897
 Strong parentage to benefit in evolving landscape: Backed by Hyundai Motor
EPS (Rs) 35.7 58.0 74.6 18.3
Group, the company benefits from significant R&D investment and strong
P/E (x)** 54.9 33.8 26.3 NA
brand recognition by the parent company. This helps the company in
RoCE (%) 20.4 28.7 62.9 13.7
identifying emerging market trends and customer needs through its global RoE (%) 17.2 23.5 56.8 12.3
network. HMIL has access to latest manufacturing technology like smart factory Source: RHP, Company Note: *-Non-annualized numbers **-At higher price band
platform for flexible vehicle customization through automated processes
through Hyundai Autoever and multiple digital platforms. With huge
Rishabh Rathod
investments required for EV development, strong parentage will help HMIL to [email protected]
remain ahead of the curve in the domestic market. +91-22-4069 1841

October 11, 2024

Hyundai Motor India | IPO Note

About the company

Hyundai Motor India Limited (HMIL), a wholly owned subsidiary of Hyundai Motor Company (HMC), is
dedicated to providing sustainable and innovative mobility solutions. It has an extensive network of 1,366
sales points and 1,550 service points across India, HMIL offers a diverse range of vehicles, including popular
models such as the Grand i10 NIOS, i20, VENUE, CRETA, and the all-electric IONIQ 5. Its state-of-the-art
manufacturing facility in Chennai not only produces a comprehensive line-up of vehicles but also serves as a
key export hub for markets in Africa, the Middle East, and neighbouring regions.
Since its establishment in 1998, HMIL has sold nearly 12mn vehicles, positioning itself as the second-largest
automotive OEM in India since FY2009. Its competitive advantages include a wide product range, a strong
brand reputation, and a strategic focus on expanding EV offerings. As of CY23, HMIL significantly contributed
to HMC’s global sales, increasing its share from 15.48% in CY18 to 18.19%.
HMIL's commitment to innovation is demonstrated through key milestones, including the introduction of the
unique Santro design, pioneering CRDi diesel engine technology, and the launch of India’s first long-range
electric vehicle (EV), the Kona. The company prioritizes safety, as evidenced by the Verna achieving a 5-star
Global NCAP rating in 2023, reflecting its “safety-for-all” initiative.

Exhibit 1: Operational metrics for HMIL (units unless otherwise specified) Exhibit 2: Domestic sales by powertrain for HMIL
3M ended
3M ended 3M ended 3M ended 3M ended Particulars FY24 FY23 FY22
Particulars June2023
June2023 June2023 June2023 June2023
Domestic sales volume by powertrain
Total passenger vehicle
192,055 192,055 192,055 192,055 ICE (without CNG) 132,338 542,234 506,249 437,637
sales volume
Domestic sales 149,455 149,455 149,455 149,455 CNG 17,000 70,367 60,322 43,732
Exports 42,600 42,600 42,600 42,600
EV 117 2120 975 131
Sales and service Outlets
Sales outlets 1,377 1,377 1,377 1,377 Eco-friendly passenger vehicle
11.5% 11.8% 10.8% 9.1%
Service outlets 1,561 1,561 1,561 1,561 (CNG passenger vehicles and EVs)
Source: HMIL RHP, IDBI Capital Research Source: HMIL RHP, IDBI Capital Research

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Hyundai Motors India | IPO Note

 Corporate structure and royalty agreement

As of March 31, 2024, the Company operates as a wholly-owned subsidiary of HMC, which offers a diverse
portfolio of over 40 vehicle models, including passenger cars and commercial EVs sold globally. The
Royalty Agreement with HMC grants the Company a non-exclusive right to manufacture and sell PVs in
India, requiring a quarterly royalty payment of 3.5% of sales revenue. HMC provides critical support,
including access to machinery and technical information, while prior approval is needed for any vehicle
exports. The agreement may be terminated by HMC for reasons such as failure to remit royalty payments.

Exhibit 3: Product portfolio Exhibit 4: Corporate structure

Source: HMIL RHP, IDBI Capital Research Source: HMIL RHP, IDBI Capital Research

 Manufacturing capabilities
The Chennai Manufacturing Plant consists of two fully integrated facilities, operational since 1997 (plant 1)
and 2008 (plant 2), capable of producing 13 passenger vehicle models. It has two engine shops, two
transmission shops, and one aluminium foundry, with part of the facility leased to Mobis for EV battery
production. Recently, the Company acquired the Talegaon Manufacturing Plant from General Motors
India, which is currently under redevelopment. Once fully operational, the combined capacity of the plants

3
Hyundai Motors India | IPO Note

will be 1,047,000 units per year. The Talegaon facility, spreads across ~300 acres, which has integrated
passenger vehicle and engine manufacturing. Operations are expected to begin in phases, with the first
phase starting in the second half of Fiscal 2026.

Exhibit 5: Capacities utilization of Hyundai India

3M ended Jun-2024 2024 2023 2022
Capacity Capacity Capacity Capacity
Plant Installed Production Installed Production Installed Production Installed Production
utilisation utilisation utilisation utilisation
capacity volume capacity volume capacity volume capacity volume
(%) (%) (%) (%)

Chennai Plant #1 97,000 98,250 101.29 396,000 408,150 103.07 354,000 350,342 98.97 342,000 289,308 84.59

Chennai Plant #2 98,000 85,150 86.89 415,000 379,350 91.41 416,000 376,958 90.61 416,000 316,792 76.15
Total installed
195,000 183,400 94.05% 811,000 787,500 9710.00% 770,000 727,300 94.45 758,000 606,100 79.96
capacity
Source: Independent Chartered Engineer IDBI Capital Research; Notes: (1) calculations assume 293 working days at 21.92 working hours per day for Fiscals 2021, 2022 and 2023, and calculations assume 219 working days at 21.92 working
hours per day for the nine months ended December 31, 2023; (2) production volume divided by installed capacity; (3) the annual installed capacity is 824,000 units as on March 31, 2024.

 Business model
 Strong parentage: It’s a part of the Hyundai Motor Group, the third-largest auto OEM globally. It
provides robust support in management, R&D, design, and manufacturing. HMC's investment of Rs.
1,875.03bn in global R&D from CY2014 to Jun 30,2024 enables timely identification and response to
customer preferences in India. Its centralized R&D hub and advanced manufacturing facilities improve
operational efficiency and product quality. The Hyundai brand value grew by 18% to Rs. 1,695.57bn in
2023, strengthening its market presence.
 Advanced technology: The company integrates technology across its operations, focusing on product
design, manufacturing, and customer engagement. As part of HMC, it accesses global automotive
trends and innovations like smart factory platform for flexible vehicle customization through
automated processes through Hyundai Autoever, HMC’s technology arm. It has also launched digital
platforms like the “myHyundai” app for customers and the “H-Smart” app for dealers to enhance the
sales network.

4
Hyundai Motors India | IPO Note

 Localization: Focusing on local sourcing enhances profitability and operational efficiency.

Approximately 93% of parts are sourced from suppliers near the Chennai facility, supporting a “Just in
Time” manufacturing approach that reduces costs and inventory needs.
 Strong brand recognition: The company has established the Hyundai brand as a trusted name in India,
supported by over 50 awards in FY24, including multiple Indian Car of the Year accolades. It employs
innovative marketing strategies and celebrity endorsements to connect with diverse customer
segments, particularly the youth. The brand emphasizes customer satisfaction across all aspects of
vehicle ownership, from purchase to after-sale services.
 Prioritizes long-term relationships with stakeholders:
 Customers: The company has an extensive service network, of 1,377 sales outlets and 1,561 service
centers, ensuring high customer satisfaction. Net promoter scores for passenger sales was 97% and
for services it was 92% for the CY2023.
 Dealers: The company aims to develop long-term relationships with 364 dealer partners by offering
showroom expansion opportunities, continuous training, and performance incentives, resulting in
increased average sales from 1,415 vehicles in CY2021 to 1,659 in CY2023. In the 2023 India Dealer
Satisfaction Study, it achieved a score of 834, the highest among mass market PV OEMs, compared
to the industry average of 785.
 Suppliers: Outside Korea, India has the largest supply chain for Hyundai Motor Group, consisting of
194 tier-1 and 1,083 tier-2 suppliers as of Jun 30, 2024, with rigorous onboarding processes to
ensure high-quality standards.

5
Hyundai Motors India | IPO Note

Industry outlook

 Global PV car sales: In CY23, global PV sales grew by 11.3% to 65.3mn units, surpassing pre-COVID levels,
as supply chain challenges eased. The Indian PV market experienced robust growth at 15.4%, outpacing
the global market's 6.8% CAGR from CY21 to CY23. The top three manufacturers were Toyota Group with
11.1mn units, Volkswagen Group with 9.2mn, and Hyundai Motor Group with 7.3mn units.
 Key factors impacting demand in India's automotive industry: Fluctuations in crude oil prices and
exchange rates, along with monsoon effects on agriculture and consumer spending, significantly impact
automotive demand and affordability.
 Auto loan interest rate: The rise in repo rates has led to nearly 10% interest rates in the PV segment,
making auto loans more expensive and negatively impacting customer purchasing decisions.
 Per capita income and vehicle ownership: Per capita income in India is projected to grow by 6.8% in
FY24, while according to IMF estimates, India's per capita income is expected to grow at 8.8% from
2023 to 2028. With the rise in per capita income spending on discretionary items like consumer
durables and automobiles is expected to rise, boosting demand for these goods.

Exhibit 6: Average auto loan interest rates provided by banks Exhibit 7: Car penetration by country, CY2021.
9.8%
9.8%
9.8%
9.8%
9.8%
9.8%
9.8%

9.8%
9.8%
9.8%
9.8%
9.8%
9.8%
9.7%

9.7%
9.7%
9.7%
9.7%
9.5%
9.4%
9.3%
9.2%

70
8.9%
8.9%
8.7%

8.6%
8.4%
8.3%
8.2%
8.2%
8.2%
8.2%
8.2%
8.2%

8.2%
8.2%
8.2%
8.2%
8.0%
8.0%

51 46
45
40 35
31

495
594

583

559

526

489

389

351

280

276
13 10 13

26
China 183

4
8 3 4

Germany

Mexico
Korea
US

UK

Russia

Brazil
Japan
France

Spain

India*

Philippines
Dec

Dec

Dec
Sep
Sep

Sep
Nov
Jan
Feb

Nov
Jan
Feb

Nov
Jan
Feb
Apr

Aug

Apr

Aug

Apr

Aug

Apr
May
Jun

May
Jun
Jul

Oct

Mar

Jul

Oct

Mar
May
Jun
Jul

Oct

Mar
May
Jun
Jul

FY22 FY23 FY24 FY25 Cars per 1,000 population GDP per Capita (US$ in thousand)
Source: Industry, CRISIL MI&A, IDBI Capital Research Source: International Road Federation- World Road Statistics 2023, CRISIL MI&A, IDBI Capital Research; Note: Data for
CY2021, India Data for FY24.

6
Hyundai Motors India | IPO Note

 Policies affecting the Indian automobile industry: The Indian government's policies, including the
National Infrastructure Pipeline, Gati Shakti Scheme, and Production Linked Incentive (PLI) scheme,
aim to enhance transportation infrastructure, boost logistics efficiency, and increase domestic
manufacturing in the automobile industry.
 Corporate average fuel efficiency/economy norms (CAFE): CAFE norms aim to reduce CO2 emissions
to under 130 g/km in Phase 1 and below 113 g/km in Phase 2, effective April 1, 2023. This 10% increase
in fuel efficiency encourages the adoption of greener technologies, such as hybrids and EVs (EV).
Penalties for exceeding emissions limits range from Rs 25k to Rs 50k per unit.
 Government support for CNG: India had 21.9k km of operational gas pipelines under City Gas
Distribution projects, with an additional 33.1k km under construction, and a total of 5,665 CNG stations
following the addition of 1,232 new stations, reflecting a CAGR of 34.5% from FY19 to FY23.
 National green hydrogen initiative: The initiative aims to establish a green hydrogen network in India
with an investment of Rs 197bn, targeting a production capacity of 5mn metric tonnes by 2030. GoI
has committed Rs 350bn for the energy transition to achieve net zero carbon emissions by 2070.

7
Hyundai Motors India | IPO Note

Overview of the Indian PV sector

India’s domestic PV sales grew at a 5% CAGR, rebounding significantly from a contraction of 10% during FY19
to FY21. Sales surged to a historic high of 3.9mn vehicles in FY23 and are projected to rise by 8.4% in FY24,
reaching 4.2mn units, driven by strong SUV demand and improved disposable incomes. The industry value
increased at an 11% CAGR from FY19 to FY23, supported by a shift towards premium vehicles and compliance-
related price hikes. Total vehicle sales, including exports, saw a recovery with a 21% CAGR growth post-FY21,
culminating in a market value of Rs 3 trn.

Exhibit 8: Evaluation of the PV industry by value Exhibit 9: Evaluation of the PV industry by volumes

CAGR: 13% CAGR: 5%

CAGR: (10)% CAGR: 16%
CAGR: (10)% CAGR: ~30% 4.2
3.9
3.6 3.3 3.1
3.0 2.8 2.7
2.0 2.1
1.7 1.6
1.0

FY19 FY20 FY21 FY22 FY23 FY24E FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25
INR Trillion Million Units
Source: SIAM, Annual Report, MCA financials, CRISIL MI&A, IDBI Capital Source: SIAM, CRISIL MI&A, IDBI Capital Research
Research; Note: Industry value calculated based on the reported vehicle sales
revenue by OEMs and the total sales (domestic + exports) volume of the industry
reported by SIAM. FY24 financials are not available

 Premiumisation trend: The ASP of vehicles rose at a CAGR of 7-8%, driven by premiumisation and rising
consumer preferences for feature-rich SUVs over budget-friendly small cars. This shift includes a growing
demand for advanced technologies and safety features, such as ADAS, sunroofs, and connectivity options,
contributing to higher profit margins and overall vehicle costs.

8
Hyundai Motors India | IPO Note

Exhibit 10: Average vehicle price trend Exhibit 11: Trends in overall PV sales volume by segment in India
7.3
5.4% 4.3% 3.9% 3.5% 3.4% 3.3%
6.6
5.7% 6.9% 5.9% 7.5% 7.7% 8.7%
5.8
23.1% 27.7% 33.5%
5 5.2 41.1% 43.9%
4.9 51.2%
18.8% 14.4% 10.9%
10.2% 10.5%
9.1%
46.9% 46.7% 45.8% 37.6% 34.5% 27.7%

FY19 FY20 FY21 FY22 FY23 FY24E FY19 FY20 FY21 FY22 FY23 FY24
INR Lakhs Hatchbacks Sedans SUVs MPVs Vans

Source: SIAM, CRISIL MI&A, IDBI Capital Researc; Note: YTD: Apr 2023- Feb 2024 period; volumes for Tata Motors are
Note: Based on OEM factory cost; Source: CRISIL,MI&A, IDBI Capital Research not reported for the months of Jan 2024 and Feb 2024 in SIAM data, hence not included here. Figures above bars are
the total sales volumes for the respective year.

Exhibit 12: Segmental growth trends in the industry over the past 5 years
Fiscal 2019 Fiscal 2024 YTD Fiscal 2019-
Segment
Contribution Contribution Fiscal 2024* CAGR
Hatchbacks 46.9% 27.7% -5.7%
Compact Hatchbacks 75.2% 66.7% -8.0%
Premium Hatchbacks 24.8% 33.3% 0.0%
Sedans 18.8% 9.1% -9.5%
SUVs 23.1% 51.2% 22.7%
Comapact SUVs 57.7% 57.9% 22.9%
Mid-Size SUVs 23.7% 24.8% 23.8%
Large SUVs 18.6% 17.3% 20.8%
MPVs 5.7% 8.9% 14.0%
Vans 5.4% 3.4% -5.0%
Total 100.0% 100.3% 5.0%
Source: SIAM, CRISIL MI&A, IDBI Capital Research; Note:*:based On FY24 estimates; YTD: Apr 2023- Feb 2024 Period

9
Hyundai Motors India | IPO Note

 Segmental changes driven by premiumization: The PV market is shifting from hatchbacks to premium
SUVs, driven by younger buyers prioritizing design, safety, and advanced features. This trend is reflected in
the market share, with SUVs rising from 23.1% in FY19 to 50% in FY24, while hatchbacks fell from 46.9% to
34.4%.

 Rise of SUVs: The SUV segment has gained significant consumer preference, driven by the appeal of
larger seating capacity and versatile driving capabilities. Over 30 SUVs were launched in the past five
years, compared to just a handful in other segments.
 Slowdown in hatchbacks: Hatchbacks have experienced a decline in market share due to a lack of new
models and rising operating costs. Factors such as frequent price hikes and a challenging economic
environment have particularly affected price-sensitive entry-level customers.
 Lower demand for sedans: The shift towards SUVs and a decrease in demand from ride-hailing
services have significantly reduced sedan sales. Consequently, their share of overall PV sales dropped
from 19% in FY19 to just 9% by FY24.
 Competitive landscape: The domestic PV industry is dominated by a few key players, with Maruti Suzuki
leading at ~ 43% market share as of FY24, despite a decline from 52% in FY19. Hyundai Motor India holds
the second position, maintaining a 15-18% share thanks to strong demand for models like the Creta and
Venue, along with strategic new launches and upgrades. Competition has intensified in recent years,
particularly from new entrants like Kia and MG, which have captured significant market share with their
competitively priced, feature-rich vehicles.

10
Hyundai Motors India | IPO Note

Exhibit 13: Domestic market share of PVs among OEMs Exhibit 14: Market share of Hatchbacks among OEMs
Mn 3.3 2.8 2.7 3.1 3.9 4.2 1.0 Mn 1.6 1.3 1.2 1.2 1.3 1.2 0.3
Units Units
100% 8.2% 8.7% 8.6% 8.5% 7.2% 5.3% 4.6% 100%
6.0% 4.5% 10.0% 10.4% 10.1% 13.3% 12.6%
80% 6.3% 4.7% 80% 20.2% 15.2% 14.6%
7.1% 6.5% 8.2% 12.1% 13.9% 13.6% 13.5% 21.7% 16.4% 12.1% 12.3%
5.7%
60% 16.3% 17.6% 7.3% 9.2% 10.9% 12.2% 60%
17.4%
15.7% 14.6% 14.6% 14.6%
40% 40%
63.0% 66.4% 66.0% 68.4% 70.6% 69.1% 69.0%
51.8% 51.3% 47.8% 43.5%
20% 41.4% 41.8% 41.1% 20%

0% 0%
FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25
Maruti Suzuki Hyundai Mahindra Tata Motors Kia Toyota Honda Others Maruti Suzuki Hyundai Tata Motors Toyota Renault others

Source: SIAM- Society of Indian Automobile Manufacturers, CRISIL MI&A, IDBI Capital Research; Note: Data is for Apr Source: SIAM, CRISIL MI&A, IDBI Capital Research; Note: YTD: Apr 2023 – Feb 2024, Figures above bars are the sales
2023- Feb 2024 period; Volumes for Tata Motors are not reported for the months of Jan 2024 and Feb 2024 in SIAM volumes.
data, hence not included here. Others include MG, Renault/Nissan, Skoda, PCA etc. Figures above bars are the sales
volumes.

Exhibit 15: Market share of sedans among OEMs Exhibit 16: Market share of SUV among OEMs
000' 629 395 296 314 408 383 88 000' 773 762 906 1,261 1,706 2,153 546
Units Units
100% 100% 6.0%
16.4% 13.7% 13.6% 10.0% 7.5%
19.4%
80% 9.7% 80% 8.5% 8.2%
21.6% 22.5% 23.5% 13.8% 11.4%
21.9% 9.2% 10.7% 16.9% 13.5% 18.0% 18.4%
20.5% 20.0% 7.4%
60% 12.5% 18.2% 22.3% 60% 16.3% 9.3% 17.9% 20.9%
12.5% 17.9% 18.1% 18.4%
17.2% 23.2%
40% 40% 25.7% 23.6% 19.9% 17.7%
16.1% 20.6% 20.0%
47.7% 51.7% 48.0% 46.1% 45.7% 53.8% 12.7% 10.7% 11.8%
20% 40.2% 20%
26.6% 21.6% 20.8% 21.3% 22.7%
16.8% 17.6%
0% 0%
FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25
Maruti Suzuki Hyundai Honda Tata Motors VW Skoda Others Mahindra Maruti Suzuki Hyundai Tata Motors Kia Toyota MG others

Source: SIAM, CRISIL MI&A, IDBI Capital Research; Note: YTD: Apr 2023 – Feb 2024, Figures above bars are the sales Source: SIAM, CRISIL MI&A, IDBI Capital Research; Note: YTD: Apr 2023 – Feb 2024, Figures above bars are the sales
volumes volumes.

11
Hyundai Motors India | IPO Note

Exhibit 17: Market share of compact SUV among OEMs Exhibit 18: Market share of mid-size SUV among OEMs
000' 445 450 545 760 1,003 1,247 335 000' 183 189 234 288 402 533 123
Units Units
100% 5.8% 6.5% 100% 7.2%
20.3% 18.0% 12.7% 6.5% 7.5% 11.5% 3.1% 18.6% 18.0% 18.7% 14.6%
22.9% 21.9%
80% 9.4% 16.1% 15.1% 80% 20.6%
9.7% 38.1%
20.8% 11.7% 12.0% 43.2% 16.1%
28.5% 13.8% 18.5% 19.3% 33.3% 24.9% 18.8%
60% 17.1% 20.8%
60%
7.4%
24.7% 20.2% 6.2% 22.1%
12.4% 40% 7.2% 14.0% 22.7%
40% 20.2% 27.4% 27.2% 67.9%
9.6% 23.3% 30.5% 51.3%
20% 11.2% 20% 43.4% 40.9% 37.4% 37.9%
36.2% 30.5%
24.6% 17.9% 25.8% 24.5%
15.0% 14.5%
0% 0%
FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25
Maruti Suzuki Tata Motors Mahindra Hyundai Kia others Hyundai Maruti Suzuki Kia Toyota others

Source: SIAM, CRISIL MI&A , IDBI Capital Research; Note: YTD: Apr 2023 – Feb 2024, Figures above bars are the sales Source: SIAM, CRISIL MI&A, IDBI Capital Research; Note: YTD: Apr 2023 – Feb 2024, Figures above bars are the sales
volumes. volumes.

Exhibit 19: Market share of large SUVs by OEMs

(000's Units)
145 123 127 212 301 373 88
100.0%
8.0% 6.6%
80.0% 9.2% 12.5%
10.0%
11.2% 17.6% 26.8% 13.7% 9.2%
17.0% 10.1%
60.0% 14.7% 10.8%
10.6% 17.9% 23.2% 10.3%
40.0% 9.2% 9.1%
59.3% 66.7%
52.0% 42.7% 47.7%
20.0% 33.2% 32.2%
0.0%
FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25
Mahindra Toyota Tata Motors MG Hyundai Others
Source: SIAM, CRISIL MI&A, IDBI Capital Researchl Note: YTD: Apr 2023 – Feb 2024, Figures above bars are the sales volumes.

12
Hyundai Motors India | IPO Note

Shifting powertrain dynamics in the Indian PV market: Conventional petrol and diesel powertrains have long
dominated the Indian PV market, but a notable shift has occurred due to environmental concerns and
regulatory changes. Following a Supreme Court ban on diesel vehicles in the NCR and the transition to stricter
emission norms, diesel's market share plummeted from 37% in FY19 to just 18% in FY24, while petrol vehicles
rose from 56% to 63% during the same period.

Exhibit 20: Trends in powertrain mix for PV industry retails Exhibit 21: Domestic PV industry volume outlook
(Mn Units) 2.9 2.6 2.9 3.6 3.8 0.9 (Mn Units) 4.5-6.5%
100.00% 7.30% 7.00% 8.50% CAGR 5.2-5.7
10.80% 15.00% 17.50%
80.00% 4.2
3.9
60.00% 3.4 3.1
2.8 2.7
92.60% 92.80% 90.90% 87.30%
40.00% 80.50% 78.90%
20.00%
0.00%
FY20 FY21 FY22 FY23 FY24 Q1 FY25
Convential Fuels CNG BEV Strong Hybrid FY19 FY20 FY21 FY22 FY23 FY24 FY29 P

Source: VAHAN, CRISIL MI&A, IDBI Capital Research; Note: Telangana & Lakshadweep retail data is not available on
Source: SIAM, CRISIL MI&A, IDBI Capital Research
VAHAN.

 Future outlook for the domestic PV industry: According to CRISIL MI&A, the domestic PV industry is
expected to grow significantly, driven by projected GDP growth of 6-8% from FY24 to FY29, which will
enhance consumer disposable income. The industry is forecasted to achieve a CAGR of 4.5-6.5%,
potentially reaching 5.2-5.7mn vehicle sales by FY29, supported by favorable demographics, government
policies, and the introduction of feature-rich vehicles.
 Segmental outlook: Growth in the domestic PV industry is anticipated to be driven primarily by the SUV
and MPV segments, while hatchbacks, sedans, and vans are expected to experience muted growth.

13
Hyundai Motors India | IPO Note

Exhibit 22: Growth outlook on segments

Segment FY19-FY24 CAGR FY24-FY29P CAGR
Hatchbacks (6)% 0.0-2.0%
Compact Hatchbacks (8)% (1.0)-0.5%
Premium Hatchbacks 0% 1.5-4.0%
Sedans (9)% 0.5-2.0%
SUVs 23.0% 7.0-9.0%
Compact SUVs 23.0% 6.8-8.8%
Mid-Size SUVs 24.0% 7.8-10.0%
Large SUVs 21.0% 7.2-9.2%
MPVs 14.0% 6.4-9.4%
Vans (5)% 1.1-2.0%
Total 5% 4.5-6.5%
Source: SIAM, CRISIL MI&A, IDBI Capital Research

Exhibit 23: Segmental industry breakdown for FY24, Q1 FY25 & outlook for FY29
3.3% FY24 Q1 FY25 2.7 FY29P
3.3%
8.7% 9.8% 9.5
22.2
27.7% 24.8%
7.7
8.6%
51.2% 9.1% 53.5%
57.9

Hatchback Sedans SUVs MPVs Vans

Source: SIAM, CRISIL MI&A, IDBI Capital Research

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Hyundai Motors India | IPO Note

Exhibit 24: Segmental powertrain breakdown for FY24, Q1 FY25 & outlook for FY29
2.2% FY24 Q1 FY25 1.1% FY29P
2.3% 2.5%

13-16%
15.0%
17.5%
7-20% 38-43%

80.5% 78.9% 22-27%

Convential fuels CNG BEV Strong hybrid

Source: VAHAN, CRISIL MI&A, IDBI Capital Research; Note: Strong hybrid: Vehicles having a combustion engine as well as an electric motor. The vehicle can be
powered by the engine, by the battery, or by both simultaneously. Battery of the vehicle is charged by the combustion engine and not by an external power source.
Telangana & Lakshadweep retail data is not available on VAHAN

 Exports trend: PV exports from India are projected to grow by approximately 3% in FY24, reaching 682k
units, down from 15% growth in FY23 due to global economic slowdowns and logistical challenges related
to the Red Sea crisis. Despite these hurdles, strong demand in key markets like Morocco and Mexico, along
with trade agreements, has allowed OEMs such as Maruti Suzuki and Hyundai to maintain healthy export
volumes.
 Outlook for PV exports from India: Major OEMs in India are expanding production capacities to position
the country as an export hub for Africa, the Middle East, and Asia, with government incentives through the
PLI scheme promoting EV manufacturing. PV exports are projected to grow by 3.1% in FY24 and at a CAGR
of 7-9% from FY24 to FY29, supported by economic stability and enhanced trade agreements.

15
Hyundai Motors India | IPO Note

Exhibit 25: Export growth trend (FY19-FY24 Exhibit 26: Export Outlook (FY23-FY28P)
Forecast)
Thousand Units Thousand Units

CAGR (0.1%)
1005-1025

CAGR (22.7%) CAGR 18.5% CAGR 7-9%

676.2 672.1 663 672
659.1 1005-1025
577.8

404.4

FY23 FY24E FY29P

FY19 FY20 FY21 FY22 FY23 FY24

Source: Society of Indian Automobile Manufacturers (SIAM), CRISIL MI&A, IDBI Source: CRISIL MI&A, IDBI Capital Research
Capital Research; Note: FY24E (estimated) numbers are calculated based on
actual exports volumes as of 11M FY2024

Exhibit 27: OEM Export Volume Share (FY19 - FY2024 YTD)

10.7% 8.8% 7.6%
5.6% 6.7%
24.1% 3.3% 3.4% 10.0%
35.9% 6.6% 9.1% 6.4% 7.1%
43.1% 1.3% 7.4% 4.1% 6.6%
0.6% 7.6% 8.8% 12.9% 7.8% 9.6%
0.7% 7.7% 4.3%
11.0% 10.0% 24.3%
7.3% 8.4% 22.4% 23.1% 23.6%
9.1% 3.3%
25.8%
24.0% 25.8%
40.8% 38.5% 41.8% 38.8%
15.7% 15.1% 23.5%

FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25

Maruti Suzuki Hyundai Motors Kia Motors Volswagen Nissan Motors Honda Others
Note: Fiscal 2024 YTD refers to April 2023-February 2024 period
Source: SIAM, CRISIL MI&A, IDBI Capital Research

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Hyundai Motors India | IPO Note

 Competitive scenario: In FY23, PV exports from India rose about 15%, with Maruti Suzuki capturing a 39%
share as the top exporter, driven by strong demand in Latin America and Africa. Hyundai Motor India,
holding a 25% share in FY24 YTD, saw stable growth fueled by models like the Verna and Grand i10, while
Kia reported a 69% increase in exports since its market entry in 2019.
 The shift toward electrification in the Indian PV industry: EVs (EVs) are gaining momentum in India amid
increasing environmental concerns and government initiatives like the FAME subsidy and Production
Linked Incentives, targeting a 30% EV sales share by 2030. Rising consumer awareness, competitive
pricing, and the expansion of charging infrastructure are further driving the adoption of EVs, making them
a preferred choice as traditional internal combustion engine (ICE) vehicles face price hikes and pollution
scrutiny.

Exhibit 28: Trends in Domestic Passenger Vehicle EV Exhibit 29: Market share of players in EV retail
Retail Sales and Market Penetration sales
91 100.0% 0.8%
1.8% 1.0%
11.2%
2.5% 9.6% 6.7% 7.5%
2.30% 80.0% 21.9%
12.8%
18.4%

47.4 60.0%
37.2%

1.30% 73.1%
6.5%
18.6 23 40.0%
70.7%
84.6% 81.5%
70.6%
65.3%
5.1 0.60%
1.8 2.3 20.0% 39.7%
0.10% 0.10% 0.20%
11.0%
FY19 FY20 FY21 FY22 FY23 FY24 Q1 0.0%
FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25
FY25
EV retails in Thousands Penetration Tata Motors MG Mahindra Hyundai BYD Others

Source: VAHAN, CRISIL MI&A, IDBI Capital Research; Note: VAHAN figures Source: VAHAN, CRISIL MI&A, IDBI Capital Research
exclude Telangana, Lakshadweep retails

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Hyundai Motors India | IPO Note

 Increasing competition in the EV passenger car market: Competition in the Indian EV market has
intensified, with Tata Motors initially leading thanks to the popularity of the Nexon, but facing challenges
from MG and Mahindra & Mahindra in FY24. Meanwhile, MG's ZS EV and the recent Comet EV launch,
along with Hyundai's Kona, have helped increase their market shares, while Mahindra's discontinuation of
certain models has affected its standing despite the introduction of the XUV400.
 Current status of India's charging infrastructure: As of January 2024, there are over 40,000 chargers,
including 12,146 public charging stations, marking a significant increase from just 650 in 2019, with
residential chargers expected to grow at a CAGR of 59-61% and public stations at 51-53% between FY24
and 2029.
 Barriers to EV adoption and challenges in the Indian EV ecosystem: The government's push for EVs (EVs)
includes initiatives like public charging infrastructure and R&D incentives, yet significant barriers remain,
particularly in the supply chain and reliance on imports.
 High acquisition cost
 Limited charging infrastructure
 Range anxiety
 Dependency on raw material imports
 Import of EV components
 Resale value concerns
 Current network strength and OEM-specific touchpoints
Dealer satisfaction ratings: Dealers are vital touchpoints for car buyers in India and play a key role in the
success of OEM networks. The 2023 FADA Dealer Satisfaction Study revealed that Hyundai Motor India ranked
highest in dealer satisfaction among mass market PV OEMs, followed by Maruti Suzuki and Mahindra &
Mahindra.

18
Hyundai Motors India | IPO Note

Exhibit 30: Current sales and service locations Exhibit 31: FADA 2023-24 PV dealer rankings
Touchpoints/ JSW MG Motor India 866
OEM Sales Outlets Total
Service Outlets
4 Wheeler Mass Market 785
Maruti Suzuki 3,480+ 4,960+ 8,440+ 769
Skoda Auto India 519
Hyundai Motors India 1,360+ 1,540+ 2,900+
Tata Motors 1,450+ 1,000+ 2,450+ Tata Motor 826
728
Mahindra & Mahindra* 1,280+ 1,020%+ 2,300+ Toyota Kirloskar Motor 724
732
Kia Motors India 520+ 520+ 764
KIA motors
Toyota Kirloskar Motor 615+ 615+ 756
Honda Cars India 616
Honda Cars India 400+ 400+ 763

SkodaAuto India^ 260+ 260+ Mahindra 837

774
MG Motot India 380+ 380+ Maruti Suzuki India 706
791
Renault India 430+ 490+ 920+ Hyundai Motor India 834
852
Volkswagen India 210%+ 140+ 350+
2024 2023
Nissan Motor India 270+ 270+
Note: * Data is for overall Mahindra automotive division; ^ Data is at the end of CY2023; Source: Company Annual Source: Federation of Automobile Dealers Associations (FADA) September 2023 report, CRISIL MI&A, IDBI Capital Research
Reports of FY23 for listed players and Hyundai Motor India. For other non-listed OEMs, data sourced from company
websites or press releases in April to December of FY24, IDBI Capital Research

Exhibit 32: Overall financial comparison by player (FY2024)

Toyota
Maruti Hundai Tata Mahindra & Kia Motors Honda Cars Skoda Auto MG Motor Nissan
Particulars Kirloskar
Suzuki Motor India Motors Mahindra India India Volkswagen India India Renault India
Motor
Passenger vehicle volume
41.8% 14.6% 13.6% 10.9% 5.8% 5.8% 2.1% 2.1% 1.1% 1.8%
wise Market share(%)
Operating Revenue
1,418.6 698.3 523.5 987.6 387.8 558.7 141.9 189.6 75.8 123.6
(Rs Bn)
Operating margin (%) 12.4% 12.0% 2.0% 14.9% 9.2% 11.6% 7.8% 1.8% -8.9% -0.3%
PAT margin (%) 9.2% 8.5% NA 10.4% 5.4% 8.5% 9.9% 0.5% -10.4% 0.3%
Source: Company Financial Reports, CRISIL MI&A, IDBI Capital Research; Note: For Maruti Suzuki and Hyundai Motor India Consol. financials are used and for all other OEMs standalone are considered. For M&M the Operating Revenue is for
Standalone business that includes Automotive segment (comprises of sale of automobiles, spares, mobility solutions, Construction Equipment and related services), Farm Equipment (comprises of sale of tractors, implements, spares and related
services) and Others (comprises of Powerol, 2Ws and Spares Business Unit). For Automotive Segment the Operating Revenue is Rs 585.1bn, however other financial parameters are not available specifically for Automotive Segment. For TTMT the
financials are for passenger vehicle segment

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Hyundai Motors India | IPO Note

Competitive strengths & strategies

 Strengths
 Leadership in the Indian auto market: Hyundai is the second-largest automotive OEM in India and the
largest exporter of PVs, maintaining its position since FY09.They have exported 3.61mn vehicles to
over 150 countries by Jun 30, 2024, Hyundai benefits from higher ASP and offsets foreign currency
risks. During low sales seasons in India, HMIL increases its exports to manage overall sales effectively.
 Diverse portfolio of PVs: HMIL offers a diverse portfolio of 13 PV models, including sedans,
hatchbacks, and eight SUVs, covering ~ 88% of India’s PV sales volume in FY24, according to CRISIL.
HMIL has multiple fuel options including EV lineup and it aims to benefit from shifting consumer
preferences.
 Market trend identification and innovation: The Company effectively identifies emerging market
trends and customer needs through its global network and R&D collaboration, allowing it to introduce
tailored PVs in India. With 38 models launched since 1998 and eight upgrades in last 15 months, it
emphasizes continuous innovation and local customization to enhance customer satisfaction.
 Comprehensive sales and service network: HMIL has 1,377 sales outlets and 1,561 service centers in
India. Initiatives like the "Doorstep Service Programme" and the "Hyundai Shield of Trust" further
enhance after-sales service, particularly in rural areas and emerging cities.
 Flexible and automated manufacturing capabilities: The Chennai Manufacturing Plant is one of India’s
largest facilities, producing 131 vehicles per hour using a common platform architecture for efficiency.
Recognized with multiple industry awards, it is further expanding its capabilities through the
acquisition of the Talegaon Manufacturing Plant.

20
Hyundai Motors India | IPO Note

Exhibit 33: In-house capabilities to develop EV technologies are driven by Exhibit 34: Sales & service outlets across India
focus on R&D

Source: Hyundai India RHP, IDBI Capital Research Source: Hyundai India RHP, IDBI Capital Research

 Strategies
 Consumer-centric R&D: Invest in research and development to launch attractive PVs, addressing
emerging global trends and customer demands in both price and value.
 Premiumisation focus: Increase the average selling price of vehicles by targeting the growing segment
of younger buyers who prioritize design, safety, and advanced features over price.
 Calibrated capacity expansion: Optimize manufacturing capabilities at the Chennai and Talegaon
plants to boost production volumes and align with market demand, aiming for high capacity utilization.

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Hyundai Motors India | IPO Note

 EV market strategy: Launch appropriate EV models in line with market demands, emphasizing local
production of key components to enhance price competitiveness and support charging infrastructure
development.
 Export hub development: Position as HMC’s largest foreign production base in Asia by leveraging local
manufacturing for exports to emerging markets and enhancing collaborative strategies in export
countries.
 Brand enhancement and outreach: Strengthen brand presence through targeted marketing
campaigns, expand dealer networks, and engage with rural markets, reinforcing Hyundai’s reputation
as a trusted brand in India.
 Expanded sales and service network: Deepen the dealer network by onboarding new dealers and
enhancing existing operations, while promoting sustainability initiatives like solar panels and dry wash
options at showrooms.

Exhibit 35: Key management

Name Designation Details
Mr. Unsoo Kim Chairman & MD He is the MD and Chairman of the Company. In addition, he serves as the head of the India, Middle-
East & Africa Strategic Region for HMC, the Company’s Promoter. He holds a bachelor’s degree in
science from Seoul National University and has been associated with the Hyundai Motor Group since
1991.
Mr. Tarun Garg Whole-time Director and He is the COO of the Company, and looks after sales, service, dealer management, product
Chief Operating Officer strategies, marketing, profitability, and customer relationships. He holds a bachelor’s degree in
mechanical engineering from the University of Delhi and a PGDip in management from the Indian
Institute of Management, Lucknow. He was previously associated with Maruti Suzuki India Limited.
Mr. Gopalakrishnan Chathapuram Whole-time Director and He is the CMO of the Company, and oversees the overall manufacturing process, strategic planning,
Sivaramakrishnan Chief Manufacturing resource utilization, procurement practices, and production targets. He holds a master’s degree in
Officer business administration from ICFAI University, Dehradun, and is an associate of the Institute of
Engineers (India). He was previously associated with Maruti Udyog Limited.
Source: HMIL RHP, IDBI Capital Research

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Hyundai Motors India | IPO Note

Key risks

 Manufacturing at the Chennai Plant is critical for the company; disruptions can harm operations and
finances. Risks include closures, strikes, and natural disasters, which may lower capacity utilization.
 The company's success depends on SUV sales in India, any decline in demand or manufacturing disruptions
could adversely affect operations and finances amid evolving market conditions.
 The company's competitiveness depends on adapting to the evolving EV market in India. Failure to meet
demand or develop infrastructure may harm operations, reputation, and financial performance.
 Insufficient warranty reserves may lead to unanticipated claims, impacting financial condition and
operations. Increased sales could further raise warranty claims and provisions needed.
 Foreign exchange rate fluctuations may adversely impact financial results, as costs and sales occur in
different currencies. Hedging strategies may not fully mitigate these risks.
 Changing regulations in India may impose new compliance requirements, increasing costs and uncertainty.
Failure to comply could harm operations, financial condition, and future growth prospects.
 Challenging economic conditions in India or globally may adversely affect consumer spending, credit
availability, and vehicle sales, impacting the company’s financial performance and growth prospects.
 Conflicts of interest may arise with group companies Kia and HMC, as their interests may not align with
ours. This could negatively impact our operations and business prospects.

23
Hyundai Motors India | IPO Note

Financial summary

Profit & Loss account (Rs mn)

Year-end: March FY22 FY23 FY24 1Q-FY25*

Net sales 473,784 603,076 698,291 173,442
Change (yoy,%) 16 27 16 NA
Operating expenses (418,923) (527,588) (606,964) (150,040)
EBITDA 54,861 75,488 91,326 23,403
Change (yoy,%) 29 38 21 NA
Margin (%) 11.6 12.5 13.1 13.5
Depreciation (21,696) (21,899) (22,079) (5,290)
EBIT 33,165 53,589 69,247 18,113
Interest paid (1,319) (1,424) (1,581) (316)
Other income 5,876 11,291 14,733 2,238
Pre-tax profit 37,722 63,456 82,399 20,034
Tax (8,706) (16,363) (21,798) (5,137)
Effective tax rate (%) 23.1 25.8 26.5 25.6
Minority Interest - - - -
Net profit 29,016 47,093 60,600 14,897
Exceptional items - - - -
Adjusted net profit 29,016 47,093 60,600 14,897
Change (yoy,%) 54 62 29 NA
EPS 35.7 58.0 74.6 18.3

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Hyundai Motors India | IPO Note

Balance sheet (Rs mn)

Year-end: March FY22 FY23 FY24 1Q-FY25*
Shareholders' funds 168,563 200,548 106,657 121,487
Share capital 8,125 8,125 8,125 8,125
Reserves & surplus 160,437 192,423 98,531 113,362
Total Debt 11,400 11,586 7,679 7,581
Other liabilities 15,429 18,064 20,636 21,173
Curr Liab & prov 88,189 115,535 128,521 103,461
Current liabilities 84,162 110,996 123,992 98,880
Provisions 4,027 4,539 4,528 4,581
Total liabilities 115,018 145,185 156,836 132,215
Total equity & liabilities 283,581 345,734 263,492 253,702

Net fixed assets 71,340 74,293 76,489 76,121

Investments - - - -
Other non-curr assets 11,442 17,821 25,763 26,704
Current assets 200,798 253,620 161,240 150,877
Inventories 28,811 34,224 33,156 28,882
Sundry Debtors 21,824 28,972 25,100 23,581
Cash & Liquid 141,388 177,411 90,173 85,128
Other Curr Assets 8,775 13,012 12,810 13,285
Total assets 283,581 345,734 263,492 253,702

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Hyundai Motors India | IPO Note

Cash flow statement (Rs mn)

Year-end: March FY22 FY23 FY24 1Q-FY25*
Pre-tax profit 29,016 47,093 60,600 14,897
Depreciation 21,696 21,899 22,079 5,290
Tax paid (7,668) (21,328) (22,998) (2,803)
Chg in working capital 3,303 9,838 22,149 (21,894)
Other operating activities 5,037 8,141 10,689 3,936
Cash flow from operations (a) 51,384 65,643 92,520 (575)

Capital expenditure (12,535) (22,493) (32,318) (5,536)

Chg in investments - (1) (77,038) 38,396
Other investing activities 3,482 8,378 8,451 3,379
Cash flow from investing (b) (9,053) (14,116) (100,905) 36,238

Equity raised/(repaid) - - - -
Debt raised/(repaid) (2,708) (431) (4,540) (240)
Dividend (incl. tax) (13,594) (14,935) (154,358) -
Chg in minorities - - - -
Other financing activities (319) (427) (402) (76)
Cash flow from financing (c) (16,620) (15,792) (159,301) (317)

Net chg in cash (a+b+c) 25,711 35,734 (167,686) 35,347

26
Hyundai Motors India | IPO Note

Financial Ratios
Year-end: March FY22 FY23 FY24 1Q-FY25*
EBITDA margin (%) 11.6 12.5 13.1 13.5
Pre-tax margin (%) 8.0 10.5 11.8 11.6
Net Debt/Equity (x) -0.8 -0.8 -0.8 -0.6
ROCE (%) 20.4 28.7 62.9 13.7
ROE (%) 17.2 23.5 56.8 12.3
DuPont Analysis
Asset turnover (x) 1.7 1.9 2.3 0.7
Leverage factor (%) 1.7 1.7 2.0 2.3
Net margin (%) 6.1 7.8 8.7 8.6
Working Capital & Liquidity ratio
Inventory days 22 21 17 61
Receivable days 17 18 13 50
Payable days 47 51 45 172
Source: Company; IDBI Capital Research *-Non-annualized numbers

27
Hyundai Motors India | IPO Note

Notes

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BUY: 15%+; HOLD: -5% to 15%; SELL: -5% and below.

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28
Hyundai Motors India | IPO Note

Analyst Disclosures
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may from time to time have “long” or “short” positions in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. For the purpose of calculating whether IDBI Capital and its associates holds beneficially owns or controls, including
the right to vote for directors, 1% of more of the equity shares of the subject issuer of a research report, the holdings does not include accounts managed by IDBI Asset Management Company/ IDBI Mutual Fund.

IDBI Capital hereby declares that our activities were neither suspended nor we have materially defaulted with any Stock Exchange authority with whom we are registered in last five years. However SEBI, Exchanges and Depositories have conducted the routine inspection and
based on their observations have issued advice letters or levied minor penalty on IDBI Capital for certain operational deviations. We have not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has our certificate of registration been
cancelled by SEBI at any point of time. IDBI Capital, its directors or employees or associates, may from time to time, have positions in, or options on, and buy and sell securities referred to herein. IDBI Capital or its associates, during the normal course of business, from time to
time, may solicit from or perform investment banking or other services for any company mentioned in this document or their connected persons or be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker
in the financial instruments of the company(ies) discussed herein or their affiliate companies or act as advisor or lender / borrower to such company(ies)/associates companies or have other potential conflict of interest. This report may provide hyperlinks to other websites.
Except to the extent to which the report refers to the website of IDBI Capital, IDBI Capital states that it has not reviewed the linked site and takes no responsibility for the content contained in such other websites. Accessing such websites shall be at recipient's own risk. IDBI
Capital encourages the practice of giving independent opinion in research report preparation by the analyst and thus strives to minimize the conflict in preparation of research report. Accordingly, neither IDBI Capital nor Research Analysts have any material conflict of interest at
the time of publication of this report. We offer our research services to primarily institutional investors and their employees, directors, fund managers, advisors who are registered with us. The Research Analyst has not served as an officer, director or employee of Subject
Company. We or our associates may have received compensation from the subject company in the past 12 months. We or our associates may have managed or co-managed public offering of securities for the subject company in the past 12 months. We or our associates may
have received compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. We or our associates may have received any compensation for products or services other than investment banking or merchant
banking or brokerage services from the subject company in the past 12 months. We or our associates may have received any compensation or other benefits from the Subject Company or third party in connection with the research report. Research Analyst or his/her relative’s
may have financial interest in the subject company. IDBI Capital or its associates may have financial interest in the subject company. Research Analyst or his/her relatives does not have actual/beneficial ownership of 1% or more securities of the subject company at the end of
the month immediately preceding the date of publication of Research Report. IDBI Capital or its associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research
Report. The Subject Company may have been a client during twelve months preceding the date of distribution of the research report. Price history of the daily closing price of the securities covered in this note is available at www.bseindia.com; www.nseindia.com and
www.economictimes.indiatimes.com/markets/stocks/stock-quotes.

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