Hyundai Motor IPO Basis of Allotment

THIS IS A PUBLIC ANNOUNCEMENT FOR INFORMATION PURPOSES ONLY AND IS NOT A PROSPECTUS ANNOUNCEMENT AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE, PURCHASE: OR SUBSCRIBE TO SECURITIES. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTI ON DIRECTLY OR INDIRECTLY OUTSIDE INDIA. INITIAL PUBLIC OFFER OF EQUITY SHARES ON THE MAIN BOARD OF THE BSE LIMITED ("BSE") AND THE NATIONAL STOCK EXCCHANGE OF INDIA LIMITED ("NSE", ANDTOGETHER WITH THE BSE, "STOCK EXCHANGES") IN COMPLIANCE WITH CHAPTER II OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) FREGULATIONS, 2018, AS AMENDED.

Our Company was incorporated on May 6,1996 as a public limited company under the Companies Act, 1956, with the name "Hyundai Motor India Limited", pursuant to a certificate of incorporation <granted by the Registrar of Companies, Tamil Nadu and subsequently^ certificate of commencement of business dated May 10,1996 was issued to our Company by the Registrar of Companies,Tamil Nadu. For details of changes in the registered office of our Company, see "History and Certain Corporate Matters- Changes in the Registered office on Page 221 of the Prospectus ( Prospectus ) dated October 17, 2024.

Our Company has filed the Prospectus with the RoC and the Equity Shares are proposed to be listed on the Main Board of the NSE and BSE and thetrading will commence on October22,2024.

INITIAL PUBLIC OFFER OF 142,194,700 EQUITY SHARES OF FACE VALUE OF ? 10 EACH ("EQUITY SHARES") OF HYUNDAI MOTOR INDIA LIMITED ("OUR COMPANY" OR THE "ISSUER") FORCASH AT A PRICE OF * 1,960* PER EQUITY SHARE (INCLUDING A PREMIUM OF? 1,950 PER EQUITY SHARE) ("OFFER PRICE") AGGREGATING TO ? 278,587.47 MILLION* THROUGH AN OFFER FOR SALE ("THE OFFER") OF 142,194,700 EQUITY SH/ARES OF FACE VALUE OF * 10 EACH AGGREGATING TO? 278,587.47 MILLION* BY HYUNDAI MOTOR COMPANY ("PROMOTERSELLING SHAREHOLDER") (THE"OFFER FOR SALE" AND SUCH EQUITY SHARES, THE"OFFERED SHARES").

THE OFFER INCLUDED A RESERVATION OF 778,400* EQUITY SHARES OF FACE VALUE OF * 10 EACH, AGGREGATING TO ? 1,380.88 MILLION* (CONSTITUTING 0.10% OFTHE POST-OFFER PAID-I-UP EQUITY SHARE CAPITAL), FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES ("EMPLOYEE RESERVATION PORTION"). PURSUANT TO FINALIZATION OF BASIS OF ALLOTMENT,613,648 EQUITY SHARES WERE ALLOTTED TO EMPLOYEES UNDERTHEMPLOYEE RESERVATION PORTION. THE OFFER LESS THE EMPLOYEE RESERVATION PORTION IS HEREINAFTER REFERRED TO AS THE "NET OFFER". THE OFFER AND THE NET OFFER SHALL CONSTITUTE 17.50% AND 17.42%, RESPECTIVELY, OF 1THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

*A discount oft! 186 per Equity Share was offered to Eligible Employees bidding in the Employee Reservation Portion.

DETAILS OFTHE SELLING SHAREHOLDER, OFFER FOR SALE AND WEIGHTED AVERAGE COST OF ACQUISITION PER EQUITY SHARE

1. Dependency on HMC: We depend on HMC, our Promoter, for our operations, including for parts and materials (such as engines and transmission assembly) and research and development. We have entered into and may continue to enter into related party transactions with HMC and companies within the Hyundai Motor Group that may involve conflicts of interest, which could adversely impact our business. Any adverse change in our relationship with HMC and the companies in the Hyundai Motor Group could have an adverse impact on our business, reputation, financial condition, and results of operations.

2. Risk regarding conflict of interest: Two of our Group Companies, Kia Corporation and Kia India Private Limited, are in a similar line of business as us which may involve conflict of interests, which could adversely impact our business. Further, our Promoter, Hyundai Motor Company ("HMC"), including certain companies in the Hyundai Motor Group, are engaged in businesses which may be similar to ours. While exercising their rights as our shareholder, HMC may consider the interest of all their subsidiaries and affiliates, which may not align with our interests.

3. Dependency on Mobis India Limited ("Mobis"!: We depend primarily on our Group Company, (being a subsidiary of Hyundai Mobis Co., Ltd. which is specialised in after-sale parts business for HMC Group Companies), to supply spare parts for after sale services to us and our dealers. Further, we also depend on Mobis to supply modular parts to us that we use in the manufacturing process of passenger vehicles and parts and constituted 17.91% of our total parts and materials supplied in the three months ended June 30,2024. Any failure by Mobis to supply these parts could adversely impact our business. Further, Mobis may engage in transactions with us and other H MC Group Companies that may give rise to conflict situations.

4. Royalty Agreement with HMC: We have entered into the Royalty Agreement with HMC pursuant to which we are required to pay an amount to HMC equal to 3.5% of our sales revenue (which is to be determined as set forth the Royalty Agreement), arising from the sale of passenger vehicles or parts. Termination of the Royalty Agreement could adversely impact our business and results of operations. The following table provides the royalty expenses paid to HMC, pursuant to the Royalty Agreement and erstwhile royalty arrangements, for the periods indicated:

Any increase in the royalty fee payable by our Company to HMC under the Royalty Agreement, including up to and exceeding the limits of 5% of the annual consolidated turnover of our Company as prescribed undertheSEBI Listing Regulations,couldadversely impact our profitability metrics, including our earnings per share.

5. Special Dividend to HMC: Our ability to utilise our internal accruals and cash and bank balances to invest in the business has been reduced and have been adversely impacted on account of the special dividend aggregating to ? 107,824.20 million paid to HMC, our Promoter, in March 2024. As a result, we may need to borrow and incur borrowing costs which could impact our profitability, key financial ratios and results of operations.

6. Risk regarding parts and materials consumed: We source parts such as trims, engines and transmissions, and materials such as steel for our manufacturing operations from a combination of domestic and foreign suppliers of the total purchase of parts and materials in Fiscal 2024, we sourced 78.04% from India and 21.96% from outside India.

7. Dependency on Suppliers: We depend on a limited number of suppliers for the procurement of parts and materials required for our manufacturing operations. The table below highlights the percentage of supplies sourced from our top-five suppliers, top-10 suppliers, related parties and suppliers in India and Korea for the periods indicated:

(1) Three of our top-five suppliers during the three months ended June 30,2024 and 2023 and Fiscals 2024 and2023 and two of our top-five suppliers during Fiscal2022are from related parties.

(2) Five of our top-10 suppliers during the three months ended June 30,2024 and Fiscal 2024 and four of our top-10 suppliers during the three months ended June 30,2023 and Fiscals 2023 and2022are from related parties.

8. Dependency on sale of non-EV passenger vehicles: A significant portion of our sales volumes are derived from the sale of non-EV passenger vehicles, and there is no assurance that we will be able to adopt our EV strategy successfully and cost-efficiently or at all.The following table provides a breakdown of our sales volumes by powertrain for the periods indicated:

9. Risk regarding evoking customerdemands; Our success depends on our and H MC's ability to identify market trends, including technological trends, and meet evolving customer demands, while maintaining or improving our profitability. If we are unable to do so, our sales volumes, business and results of operations would be adversely affected.

10. Dependency on HMC for Exports: Our global operations involve challenges and risks that could increase our costs, adversely affect our results of operations and require increased time and attention from our management. Further, we primarily depend on HMC for our exports business and revenue generated from our exports sales constitutes 22.34% and 23.70% of our revenue from operations in Fiscal 2024 and in the three months ended June 30,2024, and also need their prior permission for exports, including regarding the model and jurisdiction of our exports. Any failure or delay by HMC or us in accessing the export markets could have a material adverse effect on our results of operations and prospects.

1l. Risk regarding manufacturing capacity: We currently manufacture our passenger vehicles and parts only at the Chennai Manufacturing Plants. Our manufacturing plants currently operate at high capacity utilisation levels. For Fiscal 2024 our capacity utilisation was 97.10% and we may not be able to meet additional demand for our products until we are able to increase our capacity by operationalising Talegaon manufacturing plant which is expected to commence commercial operations partly in the second half of Fiscal 2026. Further, if we underestimate or overestimate the demand for our products, the capacity utilisation of our manufacturing plants may be under-utilised orover-utilised, respectively, which could adversely affect our manufacturing schedules and related costs.

12. Dependency on SUV: We substantially depend on the sales of our SUV models in India.The below table sets forth the domestic sales volumes of SUVs and the percentage of our total domestic sales volumes for the periods indicated:

13. Market Risk: The Offer Price of our Equity Shares and our price-to-earnings ratio may not be indicative of the trading price of our Equity Shares upon listing on the Stock Exchanges subsequent to the Offer and.asa result,you may losea significant part orallof your investment.

Notes:

Market capitalization has been computed as the product of number of shares outstanding as on the date of Prospectus with the floor price or cap price, as applicable.

Revenue from Operations are for the Financial Year ended March 31,2024.

P/E Ratio has been computed based on the Hoot prce or cap price, as applicable, divided by the Diluted EPS lor the financial year ended2024.

14. Other Risks:

The weighted average cost of acquisition of Equity Shares for Promoter Selling

Shareholder is *10 per Equity Share and the offer price at upper end of the price band is *1,960 per Equity Share.

Our Company will not receive any proceeds from the Offer for Sale.

The Price to Earnings ratio based on diluted EPS for financial year ended 2024 for the Company at the upper end of the Price band is as high as 26.28 time s as compared to the average industry peer group PE ratio of 23.57 times.

Weighted Average Return on Net Worth for Financial Year ended 2024,2023 and 2022 is 39.11%. The five Book Running Lead Managers associated with the Offer have handled 35 public issues in the past three Financial Years, out of which 5 issues closed below the issue price on the listing date:

*/ssues handled where there were no common BRLMi.

Weighted average cost of acquisition of all shares transacted in the three years, 18 months and one year preceding the date of the Red Herring Prospectus:

The Offer was made in terms of Rule 19(2Xb) of the Securities Contracts (Regulation) Rules. 1957, as amended (the "SCRR"), read with Regulation 31 of the SEBI ICDR Regulations. The Offer was made through the Book Building Process in accordance with Regulation 6(1) of the SEBI ICDR Regulations wherein not more than 50% of the Net Offer was made available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs") (the "QIB Portion"), provided that our Company, in consultation with the BRLMs, allocated 60% of the QIB Portion to Anchor Investors and the basis of such allocation was on a discretionary basis by our Company, in consultation with the BRLMs, in accordance with the SEBI ICDR Regulations (the "Anchor Investor Portion"), of which one-third was reserved for domestic Mutual Funds, subject to vaid Bids having been received from the domestic Mutual Funds at or above the price at which alocation was made to Anchor Investors ( Anchor Investor Allocation Priced. Further, 5% of the Net QIB Portion was made available for allocation on a proportionate basis only to Mutual Funds, subject to valid Bids having been received at or above the Offer Price, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors),including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Net Offer was made available for allocation to Non-lnstitutional Investors ("Non-lnstitutional Category") of which one -third of the Non-Institutional Category was made avaiable for allocation to Bidders with an application size of more than ? 200,000 and up to? 1,000,000 and two thirds of the Non-Institutional Category was made avariable for allocation to Bidders with an application size of more than ? 1,000,000 and under subscription in either of these two sub-categories of Non-lnstitubonal Category maybe alocated to Bidders in the other sub-category of Non- Institutional Category in accordance with the SEBI ICDR Regulations, subject to valid Bids having been received at or above the Offer Price. Further, not less than 35% of the Net Offer was made available for allocation to Retail Individual Investors ("Retail Category"), in accordance with the SEBI ICDR Regulations, subject to vabd Bids having been received from them at or above the Offer Price. Further, Equity Shares were alocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids having been recerved from them at or above the Offer Price. All Bidders (except Anchor Investors) were required to mandatorily participate in this Offer only through the Application Supported by Blocked Amount ( ASBA") process and to provide detaib of their respective bank account (including UPI ID (defined hereinafter) in case of UPI Bidders (defined hereinafter)) in which the Bid Amount was blocked by the Self Certified Syndic ate Banks ("SCSBs") or the Sponsor Bank(s), as the case may be. Anchor Investors were not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see "Offer Procedure" be ginning on page 407 of the Prospectus.

The Bidding for Anchor Investors opened and closed on Monday, October 14, 2024. Our Company received 225 applications from 154 Anchor Investors (including 21 domestic mutual funds through 83 Mutual Fund schemes) for 43,186,976 Equity Shares. The Anchor Investor Offer Price was fnalized at ?1,960 per Equity Share. Atotal of 42,424,890 Equty Shares vwre alocated under the Anchor Investor Portion aggregating to ?83,152,784,400.

The Offer received 1,711,805 applications for 278,214,055 Equity Shares (pnorto rejections) resulting in 1.96 times subscrption.The details of the applications recerved m the Offerfrom various categories are as under (before rejections):

This excludes 54324 applications for 803,411 Equity Shares aggregating to ?1,568,161,728/- from Retail Individual and HNI Investors which were not in bid book but which were banked.

Final Demand

A Summary of the final demand as perNSE and BSE as on the Bid/Offer Closing Date as at different Bid prices is as under (Sample):

The Basis of Allot merit was finalized in consultation withthe Designated Stock Exchange, being the NSE on October 18,2024.

A. Allotment to Retail Individual Investors (after rejections) (including ASBA Applications)

The Basis of Allotment to the Retail Individual Investors, who have bid at the Cut-Off Price or at the Offer Price of *1,960 per Equity Share, was finalized in consultation with the NSE.This category has been subscribed to the extent of 0.44206 times.The total number of Equity Shares Allotted in the Retail Portion is 21,905,793 Equity Shares to 1,485,434 successful Retail Investors. The category-wise details of the Basis of Allotment are as under:

Includes spilled overof 57,664 Equity Shares from Employee Category. Unsubscribed portion of 27,589,912 Equity Shares spilled over to QIB Category.

B. Allotment to Employee Reservation (After Rejections) (including AS BA Applications)"

The Basis of Allotmentto the Eligible Employees, who have bid at the Offer Price (net of Employee Discount i.e. * 186 per Equity Share or above), was finalized in consultation with the NSE.This category has been subscribed to the extent of 0.78835 times on an overall basis.The total number of Equity Shares Allotted in this category is 613,648 Equity Shares to 5,580 successful Eligible Employees.The category-wise details of the Basis of Allotment a re as under (Sample):

Unsubscribed portion of 164,752 Equity Shares spilled over to QIBs.NIBand Retail Individua I Investor Categories in the ratio of 50:15:35.

C. Allotment to Non-Institutional Investors (more than <200,000 and upto <1,000,000) (after rejections) (including ASBAApplications)

The Basis of Allotment to the Non-lnstitutional Investors (more than <200,000 and up to <1,000,000), who have bid at the Offer Price of <1,960 per Equity Share or above, was finalized in consultation with the NSE. This category has been subscribed to the extent of 0.60942 times. The total number of Equity Shares Allotted in this category is 4,314,114 Equity Shares to 31,980 successful Non- lnstitutional Investors (more than <200,000 and up to <1,000,000).The category-wise details of the Basis of Allotment are as under (Sample):

Includes spilled over of 8,238 Equity Shares from Employee Category Unsubscribed portion of2,7S6,701 Equity Shares spilled overto QIB Category.

C. Allotment to Non-Institutional Investors (more than <200,000 and upto <1,000,000) (after rejections) (including ASBAApplications)

The Basis of Allotment to the Non-lnstitutional Investors (more than <200,000 and up to <1,000,000), who have bid at the Offer Price of <1,960 per Equity Share or above, was finalized in consultation with the NSE. This category has been subscribed to the extent of 0.60942 times. The total number of Equity Shares Allotted in this category is 4,314,114 Equity Shares to 31,980 successful Non- lnstitutional Investors (more than <200,000 and up to <1,000,000).The category-wise details of the Basis of Allotment are as under (Sample):

Includes spilled over of 8,238 Equity Shares from Employee Category Unsubscribed portion of2,7S6,701 Equity Shares spilled overto QIB Category.

D. Allotment to Non-lnstitutional Investors (more than (1,000,000) (after rejections) (includingASBAApplications)

The Basis of Allotment to the Non-lnstitutional Investors (more than <1,000,000), who have bid at the Offer Price of <1,960 per Equity Share orabove, wasfinalized in consultation with the NSE.This category has been subscribed to the extent of 0.46280 times.The total number of Equity Shares Allotted in this category is 7,832,034 Equity Shares to 11,296 successful Non-lnstitutional Investors (more than <1,000,000).The category-wise details of the Basis of Allotment are as under (Sample):

The Basis of Allotment to the Non-lnstitutional Investors (more than <1,000,000), who have bid at the Offer Price of <1,960 per Equity Share orabove, wasfinalized in consultation with the NSE.This category has been subscribed to the extent of 0.46280 times.The total number of Equity Shares Allotted in this category is 7,832,034 Equity Shares to 11,296 successful Non-lnstitutional Investors (more than (1,000,000).The category-wise details of the Basis of Allotment are as under (Sample):

Includes spilled overof 16,475 Equity Shares from Employee Category Unsubscribed portion of 6,309,596 Equity Shares spilled overto QIB Category.

E. Allotment to QIBs (after rejections)

Allotment to QIBs, who Bid at the Offer Price of *1,960 per Equity Share or above, has been done on a proportionate basis in consultation with the NSE.This category has been subscribed to the extent of 2.96813 times of the Net QIB Portion. As per the SEBIICDR Regulations, Mutual Funds were allotted 5% of the Equity Shares of the Net QIB Portion available, i.e., 3,255,212 Equity Shares (Includes spilled over of 1,841,049 Equity Shares from Retail, NIB & Employee Categories) and other QIBs and unsatisfied demand of Mutual Funds were allotted the remaining available Equity Shares i.e., 61,849,009 Equity Shares (Includes spilled over of 34,979,912Equity Shares from Retail, NIB & Employee Categories) on a proportionate basis. The total number of Equity Shares allotted in the Net QIB Portion is 65,104,221 Equity Shares, which were a Hotted to 220 successful QIB Bidders. The category-wise details of the Basis of Allotment are as under

F. Allotment to Anchor Investors

Our Company in consultation with the BRLMs, have allocated 42,424,890 Equity Shares to 154 Anchor Investors (through 225 Anchor Investor Application Forms) (including 21 domestic Mutual Funds through 83 schemes) at the Anchor Investor Offer Price of *1,960 per Equity Share in accordance with theSEBI ICDR Regulations. This represents 60%of the QIB Portion.

The IPO Committee at its meeting held on October 19,2024 has taken on record the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful applicants.The Allotment Advice- cum* Unblocking Intimations and/or notices have been dispatched to the addresses of the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblocking of funds,transfers to the Public Offer Account have been issued on October 18,2024 and payment to non-Syndicate brokers have been issued on October 19,2024. In casethe same is not received within ten days, investors may contact the Registrar to the Offer at the address gh/en below.The Equity Shares allotted to the successful Allottees have been uploaded on October 21,2024 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. OurCompany has filed the listing application with the NSE and BSE on October21,2024. Our Company hasreceived the listing and trading approval from NSE and BSE and thetrading will commence on October 22,2024.

Note: All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus.

The details of the Allotment made will be hosted on the website of the Registrar to the Offer, KFin Technologies Limited at www.kfintech.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Offerquoting full name of the first/sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID, PAN, date of submission of Bid cum Application Form,address of the Bidder, number of Equity Shares applied for, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copyof the Acknowledgment Slip received from the Designated Interme- diaryat the address given below:

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITH ER THE MARKET PRICE OF TH E EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTUS OF HYUNDAI MOTOR INDIA LIMITED.

HYUNDAI MOTOR INDIA LIMITED has filed a Prospectus dated October 17,2024 ("Prospectus") with the Registrar of Companies,Tamil Nadu at Chennai ("RoC"). The Prospectus is available on the website of the SEBI at www.sebi.gov.in, the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of the BSE Limited at www.bseindia.com and the respective website of the book running lead managers to the Offer, namely, Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited and Morgan Stanley India Company Private Limited at https://investmentbank.kotak.com, www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm, https://www.business.hsbc.co.in/engb/regulations/hsbc-securitiesandcapitalmarket, www.jpmipl.com and www.morganstanley.com, respectively. Investors should note that investment in equity shares involves a high degree of risk. For details, refer to the Prospectus filed with the RoC, including the section titled "Risk Factors"on page 34 of the Prospectus. This announcement does not constitute an offer of the Equity Shares for sale in any jurisdiction, including the United States, and the Equity Shares may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exemption from registration. Any public offering of the Equity Shares to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. However, the Equity Shares are not being offered or sold in the United States.