Hyundai Motor India, the country's second largest car maker, has fixed a price band at Rs 1,865-1,960 per share for its Rs 27,870-crore IPO on October 9. The public issue will hit Dalal Street on October 15.
The Indian unit of the South Korean company - Hyundai Motor Company is valued at Rs 1.59 lakh crore at the upper price band. The parent firm will hold 82.5 percent stake in the Indian unit post issue.
The Hyundai Motor India IPO is entirely an offer-for-sale of 14.2 crore equity shares by promoter Hyundai Motor Company with no fresh issue component. Hence, the IPO proceeds (excluding offer expenses) will be received by the parent. The main objective is to list shares on the Indian bourses, and this would be the largest automobile company's listing in India since Maruti Suzuki in 2003.
Investors can place a bid for a minimum of seven equity shares and in multiples of seven shares thereafter. Retail investors can invest a minimum of Rs 13,720 (for a single lot of seven shares) in the mega IPO, and their maximum investment would be Rs 1,92,080 (for 14 lots of 98 shares) as they can not invest more than Rs 2 lakh in the Hyundai Motor India IPO.
Institutional investors can invest in the anchor book of the company for a day on October 14. The closing date for the offer will be October 17.
The company has reserved half of its net issue size (offer less than employees quota) for qualified institutional buyers, 15 percent for non-institutional investors, and the remainder 35 percent for retail investors. Its employees will get up to 7,78,400 equity shares in the IPO at a discount of Rs 186 per share to the final issue price.
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This will be the largest IPO in India after Life Insurance Corporation of India's Rs 21,000-crore public issue in 2022.
Hyundai Motor India, the largest car manufacturer in India after Maruti Suzuki, currently has a portfolio of 13 passenger vehicle models across sedans, hatchbacks, SUVs, and battery EVs. It sold 1.92 lakh vehicles in June 2024 quarter, increasing from 1.83 lakh units in the same quarter last year, while for the fiscal 2024, it recorded sales of 7.77 lakh vehicles against 7.2 lakh vehicles in previous year.
On the financial front, the automobile company has recorded net profit at Rs 6,060 crore for the year ended March 2024, increasing by 28.7 percent, and revenue at Rs 69,829 crore, growing 15.8 percent over the fiscal 2023.
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Revenue during the first quarter of fiscal year 2025 at Rs 17,344.2 crore has risen 4.3 percent, and the net profit grew by 12.1 percent to Rs 1,489.6 crore compared to the corresponding period of last fiscal.
Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India, and Morgan Stanley India Company are acting as the merchant bankers to the issue.
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