Hyundai Motor India IPO: A Mega Offering Coming Soon!
Hyundai Motor India, the Indian arm of the South Korean auto giant Hyundai, is all set to launch its much-awaited Initial Public Offering (IPO) next week, according to a report by Reuters. This IPO is poised to be one of the largest public offerings on Dalal Street, raising over $3 billion (approximately Rs 28,000 crore). Here’s what you need to know about the upcoming Hyundai IPO.
IPO Price Band and Valuation
Hyundai Motor India is expected to offer shares in the price band of Rs 1,865-1,960 per share, which would value the company at around $19 billion. This IPO is significant because it marks Hyundai's first-ever listing outside of South Korea. It's also the first carmaker IPO in India since 2003 when Maruti Suzuki went public.
The entire IPO will be an Offer for Sale (OFS) by Hyundai’s South Korean parent company. Through this OFS, Hyundai plans to offload 14,21,94,700 equity shares, representing 17.5% of the company’s total equity.
At the upper end of the price band, the sale could fetch approximately Rs 27,870 crore for the parent company.
Key IPO Dates
Anchor book opens: October 14, 2024 (Monday)
Bidding period: October 15-17, 2024 (Tuesday to Thursday)
Expected listing date: October 22, 2024 (Tuesday)
Grey Market Premium (GMP)
The IPO has already garnered attention in the grey market. As of today, Hyundai Motor India's grey market premium (GMP) stands at Rs 280 per share, reflecting the demand for the issue in the unofficial market. Just a day ago, the GMP hovered between Rs 260-270, and it was Rs 360-370 earlier this month.
About Hyundai Motor India
Hyundai Motor India was incorporated in May 1996 and is part of the globally renowned Hyundai Motor Group. Hyundai Motor Group is the third-largest automaker globally based on passenger vehicle sales.
The company operates a widespread network in India with 1,366 sales points and 1,550 service points. Hyundai Motor India manufactures and sells a variety of passenger vehicles, including sedans, hatchbacks, SUVs, and electric vehicles (EVs). Some of its popular models include:
Grand i10 NIOS
i20, i20 N Line
AURA
Elantra
Venue, Venue N Line
Verna
Creta, Creta N Line
Alcazar
Tucson
Ioniq 5 (all-electric SUV)
The company is also keen to expand its lineup of SUVs and is planning to launch its first India-made electric vehicle early next year. Hyundai's efforts to introduce new gasoline-powered models by 2026 reflect its ambition to reclaim market share from its domestic rivals.
Book Running Lead Managers
The IPO will be managed by a consortium of top financial institutions including:
Kotak Mahindra Capital Company
Citigroup Global Markets India
HSBC Securities & Capital Markets
JP Morgan India
Morgan Stanley India Company
The registrar for the issue is Kfin Technologies.
Conclusion
Hyundai Motor India's IPO is gearing up to be a landmark event in the Indian stock market. With a solid brand, extensive presence in India, and ambitious expansion plans, Hyundai’s public offering is expected to attract significant interest from investors. If you're considering participating in this mega IPO, make sure to keep an eye on the bidding dates and GMP movements.
Reference From: www.businesstoday.in