IPO-bound Hyundai India paid Rs 10,780-crore special dividend in FY24

IPO-bound Hyundai India paid Rs 10,780-crore special dividend in FY24

IPO-bound Hyundai Motor India Ltd has become the seventh Indian company to distribute a dividend exceeding Rs 10,000 crore for the fiscal year 2024. The company declared a special dividend of Rs 13,270 per share or 1,327 percent, amounting to a total payout of Rs 10,782.42 crore in FY24.

In comparison, the firm distributed a total dividend of Rs 4,653.42 crore in FY23 and Rs 1,493.45 crore in FY22.

Earlier, Tata Consultancy Services led the list of dividend-paying companies for FY24 with a payout of Rs 16,290 crore, followed by HCL Technologies and Coal India at Rs 14,080 crore and Rs 12,633 crore, respectively. Other notable dividend payers included ONGC Ltd (Rs 12,265 crore), State Bank of India (Rs 12,226 crore), and Vedanta Ltd (Rs 10,959 crore).

Hyundai said post its special dividend its cash and bank balances fell to Rs 9,017.35 crore in FY24 from Rs 17,741.15 crore a year ago. " As a result, our ability to utilise our internal accruals and cash and bank balances has been reduced. Any resultant insufficiency in our internal accruals and cash and bank balance may require us to borrow money to meet our growth requirements and incur borrowing costs, which may adversely impact our profitability, financial ratios and results of operations", the firm said in its RHP.

Hyundai Motors India, a subsidiary of the Hyundai Motor Group - the world’s third-largest automaker by passenger vehicle sales in 2023 - has held its position as India’s second-largest passenger vehicle manufacturer since 2009.

Hyundai Motor India has set a price range of Rs 1,865 to Rs 1,960 for its initial public offering that opens next week for subscriptions,

The $3-billion IPO, India's largest ever, will open for subscriptions for big institutional investors on October 14, and invite bids from retail and other categories during October 15-17.

The company is known for its focus on innovation, quality, and technology, offering a diverse lineup of 13 models, including sedans, hatchbacks, SUVs, and electric vehicles. Hyundai also produces essential components like transmissions and engines, both for its own vehicles and for sale.

For the quarter ending June 2024, Hyundai Motors India reported a revenue of Rs 17,344 crore, marking a growth from Rs 16,624 crore in the same period last year. Of the total revenue, 76 percent was derived from the domestic market, while exports accounted for 24 percent. The company's net profit for the quarter stood at Rs 1,489.65 crore, compared to Rs 1,329.19 crore in the previous year.

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