Hyundai Motor India Limited is set to launch its highly anticipated Initial Public Offering (IPO) next week, with significant expectations from investors. As of October 8, 2024, the IPO is projected to raise around ₹25,000 crores ($3 billion), making it one of the largest public offerings in Indian history. This marks a pivotal moment for Hyundai, as it aims to enhance its brand visibility and liquidity through this public listing.
Main Points
Key Details of the Hyundai Motor India IPO
- Issue Size: ₹25,000 crores
- Price Band: Expected between ₹1,865 and ₹1,960 per share
- Shares Offered: Approximately 142,194,700 equity shares
- Face Value: ₹10 per share
- IPO Dates:
- Institutional Investors: Opens on October 14, 2024
- Retail Investors: Opens from October 15 to October 17, 2024
- Listing Date: Expected on October 22, 2024
Objectives of the Hyundai IPO
The primary aim of Hyundai’s IPO is to provide liquidity and enhance its brand image in the competitive Indian automotive market. The offer will consist solely of an offer for sale (OFS) by Hyundai Motor Company, which will sell up to 17.5% of its stake in the Indian subsidiary. This strategic move is expected to attract significant attention from both institutional and retail investors.
Hyundai IPO Market Context
Hyundai’s IPO comes at a time when the Indian stock market is experiencing record highs. The previous largest IPO in India was LIC’s $2.7 billion offering. With this upcoming launch, Hyundai Motor India will become the first car manufacturer to go public in India in two decades, following Maruti Suzuki’s IPO in 2003.
Hyundai IPO Expert Opinions
Market analysts are optimistic about Hyundai’s IPO due to the company’s robust market position as India’s second-largest car manufacturer and the largest exporter of passenger vehicles since 2005. Experts suggest that while the valuation may appear premium compared to peers like Maruti Suzuki and Mahindra & Mahindra, Hyundai’s strong brand recognition and diverse vehicle portfolio could justify this pricing.
How to Apply for the Hyundai IPO
Investors interested in participating can apply through various online platforms. Here’s a simplified process:
- Login: Access your trading account.
- Locate IPO Section: Navigate to the IPO section on your platform.
- Select Hyundai IPO: Choose the Hyundai offering from the list.
- Enter Lot Size: Specify how many lots you wish to bid for.
- Submit UPI ID: Link your payment method via UPI.
- Approve Funds: Confirm your application through your UPI app.
Hyundai IPO Allotment Structure
The allotment of shares will be divided among different investor categories as follows:
- Qualified Institutional Buyers (QIB): 50%
- Non-Institutional Investors (NII): 15%
- Retail Individual Investors (RII): 35%
This structured approach aims to ensure a balanced distribution of shares across various investor classes.
