Hyundai IPO 2024: Hyundai Motor India has announced the dates for its initial public offering (IPO), which will be open for subscription from October 15 to October 17. Hyundai Motor India’s IPO will become the largest public issue in India’s history, surpassing the Rs 21,008-crore IPO of the state-owned Life Insurance Corporation of India in May 2022.
Hyundai Motor India’s IPO marks a significant milestone, as it becomes the first automaker to go public in India since Maruti Suzuki’s listing in 2003.The IPO is being launched during a period when the Indian stock markets are experiencing record highs, and numerous companies are making their stock market debuts.
Hyundai IPO 2024: Top 10 Things To Know
- Hyundai Motor India has set the price band at Rs 1,865-1,960 per share for the IPO.
- At the upper end of this range, Hyundai Motor India’s valuation would reach $19 billion, an increase from the previous estimate of $18 billion.
- The company aims to raise funds ranging from Rs 26,505 crore to Rs 27,856 crore through an offer for sale (OFS) of up to 14.2 crore equity shares, each with a face value of Rs 10.
- The offer is divided among various investor categories, with 50% of the offer is reserved for qualified institutional buyers (QIBs), 35% is allocated to retail investors, and 15% to non-institutional investors.
- The company has also set aside up to 7,78,400 equity shares, valued between Rs 131-138 crore, for its employees at a discounted price of Rs 186 per share.
- Anchor investors can participate in the bidding process on October 14, a day before the IPO opens for the general public.
- The IPO allotment is expected to be finalized by October 18.
- The tentative listing date for the equity shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) is set for October 22.
- Several prominent financial institutions, including Kotak Mahindra Capital, Citigroup Global, HSBC Securities, JP Morgan, and Morgan Stanley, are serving as the book-running lead managers for the IPO. KFin Technologies has been appointed as the registrar for the offer.
- The Securities and Exchange Board of India (Sebi) received the draft red herring prospectus (DRHP) from the company in June, and last month, the market regulator granted its approval.
Hyundai Motor India Limited has established itself as a major player in the Indian automotive market, securing the position of the second-largest carmaker in terms of passenger sales volumes in FY24, following Maruti Suzuki. The company reported impressive financial results for FY23, with revenue of Rs 60,000 crore and profits of Rs 4,653 crore, surpassing all other non-listed car manufacturers in the country, according to an ET report.
Among the listed carmakers in India, Maruti Suzuki, the country’s largest passenger car company, has a valuation of $47.53 billion. Mahindra & Mahindra and Tata Motors are valued at $43.46 billion and $27.60 billion, respectively.
This year, India’s IPO market has been setting new records. The Rs 6,560-crore public issue of Bajaj Housing Finance, which attracted bids totaling nearly Rs 3.23 lakh crore – the highest-ever demand in Indian primary market history – was subscribed 64 times last month.
Furthermore, the five most recent public issues, including Diffusion Engineers, KRN Heat Exchange, Manba Finance, Northern Arc, and Arkade Developers, were all oversubscribed by more than 100 times.