Hyundai Motor India Pays ₹10,780 Crore Special Dividend in FY24 Ahead of IPO Launch

Hyundai Motor India, one of India's leading automobile manufacturers, made headlines with a massive special dividend payout of ₹10,782 crore for FY24. This makes Hyundai the seventh Indian company to pay a dividend exceeding ₹10,000 crore during the fiscal year. The special dividend of ₹13.270 per share, amounting to 1,327 per cent, marked a substantial increase from the company's previous payouts—₹4,653.42 crore in FY23 and ₹1,493.45 crore in FY22.

This substantial dividend was preceded by notable distributions from companies such as Tata Consultancy Services (₹16,290 crore), HCL Technologies (₹14,080 crore), and Coal India (₹12,633 crore), positioning Hyundai Motor India alongside these industry giants.

Despite the significant payout, Hyundai Motor India's cash reserves took a considerable hit, dropping from ₹17,741.15 crore in FY23 to ₹9,017.35 crore in FY24. The company acknowledged in its Red Herring Prospectus (RHP) that this reduction could limit its ability to fund growth through internal accruals, possibly leading to increased borrowing, which might impact profitability.

Hyundai Motor India, a subsidiary of the Hyundai Motor Group, the third-largest automaker globally by passenger vehicle sales in 2023, has maintained its position as the second-largest car manufacturer in India since 2009. The company is recognized for its innovation, advanced technology, and a diverse product lineup, which includes sedans, hatchbacks, SUVs, and electric vehicles. Hyundai also produces key components such as transmissions and engines, catering both to its own vehicles and to other manufacturers.

The company has priced its upcoming IPO at ₹1,865 to ₹1,960 per share, with the subscription period scheduled for October 15-17. This IPO is expected to be one of the largest in India's history, further solidifying Hyundai's dominance in the Indian market.

For the quarter ending in June 2024, Hyundai reported a revenue of ₹17,344 crore, a rise from ₹16,624 crore in the same period last year. Of this revenue, 76 per cent came from the domestic market, while 24 per cent was generated through exports. The company's net profit surged to ₹1,489.65 crore, up from ₹1,329.19 crore in the previous year.

ALSO READ| RBI Monetary Policy: UPI 123Pay Limit Raised to ₹10,000, UPI Lite to ₹5,000 for Easier Payments

With this IPO and strategic dividend distribution, Hyundai Motor India continues to strengthen its position as a major player in India's automobile sector.