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Hyundai Motor India, the Indian arm of the South Korean automotive giant, is set to launch its highly anticipated Initial Public Offering (IPO) next week, according to reports from Reuters. This mega IPO is projected to raise a substantial sum of over Rs 28,000 crore, making it the largest public offering in the Indian stock market, Dalal Street. The IPO will not involve the issuance of fresh shares but will be an Offer for Sale (OFS) of up to 17.5% of the company's equity shares by the South Korean parent company.
The IPO is expected to be priced between Rs 1,865 and Rs 1,960 per share, valuing the automaker at a staggering $19 billion. This will be the first public listing for Hyundai outside of South Korea and the first IPO by a carmaker in India since 2003 when Maruti Suzuki conducted its initial share sale. The anchor book for the IPO opens on October 14th, and the three-day bidding period will commence on October 15th, concluding on October 17th. The listing is anticipated on October 22nd.
Hyundai Motor India currently holds the position of the second largest carmaker in India after Maruti Suzuki. The company is strategically expanding its SUV lineup to regain market share from its domestic competitors. Furthermore, Hyundai has ambitious plans to launch its first India-made electric vehicle in early 2024 and introduce at least two gasoline-powered models tailored to the Indian market starting in 2026. The upcoming IPO has generated significant buzz in the market, with the grey market premium (GMP) for Hyundai Motor India shares reaching Rs 280 per share, indicating strong investor interest and expectations.
Established in 1996, Hyundai Motor India is a subsidiary of the Hyundai Motor Group, which is the third largest auto original equipment manufacturer (OEM) in the world based on passenger vehicle sales. The company has a robust network of over 1,366 sales points and 1,550 service points across India, providing comprehensive mobility solutions. Hyundai Motor India manufactures and sells a wide range of passenger vehicles, encompassing sedans, hatchbacks, SUVs, and electric vehicles, with popular models including the Grand i10 NIOS, i20, Venue, Creta, and the all-electric SUV Ioniq 5. The IPO is being managed by a consortium of leading investment banks, including Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India, and Morgan Stanley India Company, with Kfin Technologies serving as the registrar for the issue.
Source: Hyundai Motor IPO next week? Check expected price band, GMP & other details