- Investors eager to participate can bid for a minimum of seven shares, with retail investors eligible to invest a minimum of Rs13,720 and a maximum limit of Rs1,92,080.
MUMBAI: Hyundai Motor India, a prominent player in the Indian automotive sector, has announced its Initial Public Offering (IPO) with a price band set at Rs1,865 to Rs1,960 per share.
The substantial offering, amounting to Rs27,870 crore, is poised to make a significant impact on the Indian capital markets when it is launched on October 15. This IPO serves as a pivotal moment for Hyundai Motor India, reflecting its robust growth and aspirations for greater market presence.
Valued at Rs1.59 lakh crore at the upper price point, Hyundai Motor India’s IPO is exclusively an offer-for-sale of 14.2 crore equity shares by its parent company, Hyundai Motor Company.
As a result, no fresh shares will be issued, and all proceeds will flow directly to the parent company. Notably, post-IPO, Hyundai Motor Company will retain an 82.5 per cent stake in its Indian subsidiary, underscoring its commitment to the Indian market.
Investors eager to participate can bid for a minimum of seven shares, with retail investors eligible to invest a minimum of Rs13,720 and a maximum limit of Rs1,92,080
Investors eager to participate can bid for a minimum of seven shares, with retail investors eligible to invest a minimum of Rs13,720 and a maximum limit of Rs1,92,080.
This framework is designed to democratise participation in the offering, with 35 per cent of the net issue reserved for retail investors, thereby encouraging widespread investment.
Strong investor confidence
Institutional investors will have the option to invest in an anchor book available prior to the public launch, indicating strong confidence in the offering’s potential.
The Hyundai Motor India IPO marks a historic occasion, being the largest listing for an automobile company in India since Maruti Suzuki’s IPO in 2003.
With a diversified portfolio of 13 passenger vehicle models ranging from sedans to electric vehicles, Hyundai has established a robust presence; it reported impressive sales figures of 1.92 lakh vehicles in the June 2024 quarter, a notable increase from the previous year.
On the financial front, Hyundai Motor India demonstrated substantial growth, reporting a net profit of Rs6,060 crore for the fiscal year ending March 2024, representing an increase of 28.7 per cent. Revenue also surged by 15.8 per cent, reaching Rs69,829 crore. The positive trajectory continued into the first quarter of fiscal year 2025, with revenue rising to Rs17,344.2 crore and net profit increasing by 12.1 per cent.
This IPO is being managed by a consortium of esteemed investment banks, including Kotak Mahindra Capital Company, Citigroup Global Markets India, and others, ensuring a comprehensive approach to market engagement.
