Hyundai Motor India, the Indian subsidiary of the global auto giant Hyundai Motor Company, is all set to launch its much-awaited Initial Public Offering (IPO) in India. This IPO is expected to be one of the biggest in India, even surpassing the Life Insurance Corporation (LIC) IPO from 2022. Everything you need to know about the Hyundai Motor India IPO, which is expected to open on October 15, 2024.
Hyundai Motor India IPO Dates
The Hyundai Motor India IPO will open for subscription on October 15, 2024, and will remain open until October 17, 2024. Anchor investors, who are institutional investors, will have the chance to apply a day before the public offer opens. The final share allocation will be decided on October 18, 2024, and refunds (if needed) will be processed on October 21, 2024. The shares will be credited to investors’ demat accounts on the same day, and trading of the shares on the stock exchanges (BSE and NSE) will begin on October 22, 2024.
Hyundai Motor India IPO Price Range and Lot Size
The price range for the Hyundai Motor India IPO has been set between ₹1,865 and ₹1,960 per share.Each share has a face value of ₹10. Retail investors need to apply for a minimum of 7 shares, which means the minimum amount required for investment is approximately ₹13,720. Investors can bid for shares in multiples of 7, making it easy for retail investors to participate.
Hyundai Motor India plans to raise around ₹27,870 crore (approximately $3.3 billion) through this IPO. However, it’s important to note that the company will not issue any new shares. Instead, the South Korean parent company, Hyundai Motor Company, will sell up to 14.22 crore shares (142,194,700 shares) in the Offer for Sale (OFS). After the IPO, Hyundai Motor Company will still hold an 82.5% stake in its Indian subsidiary.
Hyundai Motor India ranks as the second biggest automobile manufacturer in the country, just behind Maruti Suzuki. It has been operating in India since 1996, selling popular car models such as sedans, hatchbacks, SUVs, and electric vehicles (EVs). Hyundai’s market reach extends to more than 1,366 sales points and 1,550 service centers across India, making it a well-established player in the Indian automobile market.
The Grey Market Premium (GMP) is an unofficial indicator of how investors view the IPO before it is listed on the stock exchanges. As of today, the GMP for Hyundai Motor India shares is around ₹60, meaning that investors in the grey market are willing to pay ₹60 more than the upper end of the IPO price (₹1,960). Based on this GMP, the expected listing price of Hyundai Motor India shares could be around ₹2,020. However, it is important to note that the GMP can fluctuate, and it does not guarantee future performance.
The Hyundai Motor India IPO values the company at approximately ₹1.59 lakh crore. This makes it one of the largest IPOs in India’s history and one of Asia’s biggest recent IPOs. The subscription status during the IPO period will provide more clarity on investor demand. Half of the shares are reserved for qualified institutional buyers (QIBs), and 35% of shares are reserved for retail investors.
Hyundai Motor India’s IPO offers investors an opportunity to buy shares in one of India’s leading automobile manufacturers. With its strong market position, large sales network, and growing product range, the company has significant growth potential. However, investors should consider risks such as competition, fuel price changes, and supply chain disruptions before making a decision.
