• Source:JND
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Hyundai Motor India Ltd., the Indian arm of the South Korean automaker, is planning to launch the biggest initial public offering (IPO) in the nation’s history next week, targeting Rs 27,870 crore (about US$3.3 billion). The IPO will surpass the Rs 21,000 crore offer made by Life Insurance Corporation of India in May.

Hyundai India IPO to Surpass Paytm, Reliance Power and General Insurance Corporation

Other than these two, the largest initial share sale in India comprises One97 Communications (Paytm), which raised Rs 18,300 crore in November 2021, followed by Coal India’s Rs 15,199 crore in October 2010, January 2008 Reliance Power’s Rs 11,563 crore in the month, and General Insurance Corporation of India’s Rs 11,176 crore in October.

First Automobile Manufacturer IPO After 2003

The development marks a major milestone for the Indian industry as it is the first initial share sale of an automaker in more than two decades since the listing in 2003 by Japanese automaker Maruti Suzuki. The South Korean parent has reduced some stake via the OFS route. Since the public issue is completely OFS, Hyundai Motor India Ltd., India’s second-largest automaker after Maruti Suzuki India, will not get any proceeds from the IPO.

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Hyundai Motors IPO Details

Hyundai Motor India Ltd has fixed a price range of Rs 1,865- Rs 1,960 per share for the offer, valuing the automaker at Rs 1.6 lakh crore (about US$19 billion).

The offering will open for public subscription on October 15 and close on October 17. Anchor investors will bid on October 14. With this massive IPO, Hyundai Motor India is looking to build its growing market presence and capitalize on the strong demand for its vehicles in the country. The offering is likely to draw substantial investor interest.

The proposed IPO of the company is completely an offer for sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component. Hyundai Motors India Limited expects the listing of the equity shares to enhance its visibility and brand image and provide liquidity and a public market for the shares. At the upper end of the price band, the IPO size has been pegged at Rs 27,870 crore.

63 companies have brought IPOs this year so far

Hyundai Motors India Limited begun operations in India in 1996 and sells 13 models in different segments. This IPO launch coincides with the primary market receiving strong interest from both issuers and investors across different sectors. Furthermore, 63 companies have already raised about Rs 64,000 crore collectively via the mainboard, a 29% increase over the Rs 49,436 crore raised by 57 firms through the route throughout 2023.

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(With Agencies Inputs)