Hyundai Motor India IPO is set to open for bidding on October 15, 2024, marking the launch of India’s largest initial public offering (IPO) to date. With a size of Rs. 27,870 crore, this IPO surpasses the previous record set by Life Insurance Corporation (LIC). Hyundai Motor’s Indian arm is attracting attention due to the company’s solid market reputation, making it a highly anticipated offering for both retail and institutional investors. Here’s everything you need to know before investing.
Hyundai India IPO: Price Band and Shares
The price range for the Hyundai Motor India IPO is set between Rs. 1,865 and Rs. 1,960 per share. A total of 142,194,700 shares are being offered for sale. This IPO is purely an Offer for Sale (OFS), meaning that Hyundai Motor Company is selling 17.5% of its stake in its Indian subsidiary. After the sale, the parent company’s holding will decrease from 100% to 82.50%. Hyundai won’t issue any new shares as part of this IPO.
The total valuation of Hyundai Motor India post-IPO is expected to be around $19 billion.
Timeline of Hyundai India IPO
- Anchor Investors: On October 14, 2024, the IPO opened exclusively for anchor investors.
- Retail Investors: The public bidding for retail and institutional investors will begin on October 15 and end on October 17, 2024.
- Share Listing: Hyundai Motor India shares are scheduled to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on October 22, 2024.
Share Allotment Categories
The allocation of shares in the Hyundai India IPO is distributed among different categories:
- Qualified Institutional Buyers (QIBs): 50% of the shares are reserved.
- Retail Investors (RIIs): 35% of the shares are allocated.
- Non-Institutional Investors (NIIs): 15% of the shares are reserved for this category.
Gray Market Premium (GMP) Insights
Before the official listing, Hyundai Motor India shares are trading at a Gray Market Premium (GMP) of around Rs. 65. This means the market expects the shares to debut at approximately Rs. 2,025, which represents a potential listing gain of about 3.32%. However, it’s important to remember that gray market trading is unofficial and speculative, so actual market performance could vary.
Investment Details for Retail Investors
Retail investors can bid for a minimum lot of 7 shares, which translates to a minimum investment of Rs. 13,720 at the lower end of the price band. The maximum investment in this IPO for retail participants is Rs. 1,92,080.
Hyundai Pre-IPO Anchor Investment
Before the IPO, Hyundai raised around Rs. 8,315 crore from anchor investors by allotting 42,424,890 shares. A lock-in period applies to these shares, with 50% of them remaining non-tradeable until November 17, 2024, and the other half locked until January 16, 2025.
Hyundai India IPO Key Dates
- Bidding period: October 15 – October 17, 2024
- Allotment date: October 18, 2024
- Refund date: October 19, 2024
- Shares credited to demat accounts: October 21, 2024
- Listing date: October 22, 2024
Who is Managing the Hyundai IPO?
Hyundai Motor India’s IPO is being managed by a consortium of leading financial institutions:
- Kotak Mahindra Capital
- Citigroup Global Markets
- HSBC Securities
- JP Morgan India
- Morgan Stanley India
The official registrar for this IPO is KFin Technologies, which will handle all investor queries and allotment issues.
Why This IPO is Significant
With Hyundai being a major player in the automotive industry, this IPO is expected to attract significant attention from both domestic and international investors. The funds raised through this offer will not be used by the company directly as it is an OFS; however, the reduced stake of the parent company may offer new opportunities for further expansion and potential collaborations within the Indian market.
