Hyundai Motor India, the nation’s second-largest car manufacturer, has set the price band for its Initial Public Offering (IPO) at Rs 1,865-1,960 per share, targeting a massive Rs 27,870 crore. This public issue, slated to open on October 15, is one of the largest in recent Indian history and marks Hyundai Motor India’s first listing on the Indian stock exchanges. The IPO is fully an offer-for-sale by the parent company, Hyundai Motor Company (HMC), based in South Korea.
The IPO, valued at Rs 1.59 lakh crore at the upper price band, is a significant event for the Indian automobile sector, comparable only to Maruti Suzuki’s listing in 2003. Hyundai’s parent firm, HMC, will retain an 82.5% stake in its Indian unit after the IPO.
Hyundai’s offering includes 14.2 crore equity shares with no fresh issue, meaning all proceeds will go directly to the parent company, HMC. The funds raised will primarily serve to list Hyundai Motor India on the Indian stock exchanges without any new capital infusion into the company.
Investors, both retail and institutional, will have various opportunities to participate. Retail investors can bid for at least seven shares, translating to a minimum investment of Rs 13,720. Institutional investors can also invest through an anchor book, opening a day before the public issue on October 14. The IPO will close on October 17.
The issue has a strategic allocation plan, with 50% of the shares reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors. Employees will receive up to 7,78,400 shares at a discounted rate of Rs 186 per share.
Hyundai Motor India has been a dominant player in the Indian automobile market. It recorded a robust financial performance in FY24, with a 28.7% increase in net profit, reaching Rs 6,060 crore, and revenue growth of 15.8%, hitting Rs 69,829 crore. The company also saw a 4.3% revenue increase in the first quarter of FY25.
The IPO will be managed by top-tier financial institutions, including Kotak Mahindra Capital, Citigroup Global Markets, HSBC, JP Morgan India, and Morgan Stanley India, solidifying its significance in the Indian economic landscape.
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