Hyundai Motor India has filed for what could be the biggest Initial Public Offering (IPO) in India, aimed at raising up to ₹27,870 crore ($3.3 billion).
IMAGE CREDIT: ECONOMIC TIMES
OVERVIEW:
| IPO Date | October 15, 2024 to October 17, 2024 |
| Listing Date | October 22, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹1865 to ₹1960 per share |
| Lot Size | 7 Shares |
| Total Issue Size | 142,194,700 shares (sums up to ₹27,870.16 Cr) |
| Offer for Sale | 142,194,700 shares of ₹10 (sums up to ₹27,870.16 Cr) |
| Employee Discount | Rs 186 per share |
| Issue Type | Book Built |
| Listing At | BSE, NSE |
| Shareholding pre-issue | 812,541,100 |
| Shareholding post-issue | 812,541,100 |
Hyundai Motor India has filed papers with SEBI for a ₹25,000 crore public offering. If successful, this will be the largest IPO in Indian history, surpassing LIC’s 2022 offering.
All about Hyundai Motor India: A Global Auto Giant
Hyundai Motor India was founded in May 1996. It is part of the Hyundai Motor Group, the third-largest automaker in the world. The company produces a variety of passenger vehicles. These include sedans, hatchbacks, SUVs, and electric vehicles. Hyundai also manufactures parts like engines and transmission. Hyundai operates 1,366 sales points and 1,550 service centers. This network ensures customer support across India. By March 2024, Hyundai has sold nearly 12 million vehicles. This includes both domestic sales and exports.
First Auto IPO in 20 Years
This is the first time in two decades that an automaker is going public. The last was Maruti Suzuki in 2003. Hyundai’s IPO will value the company at around ₹1.5 lakh crore.
IPO Structure
Hyundai’s parent company in South Korea will sell up to 17.5% of its stake in the Indian arm. The sale is an “Offer for Sale” (OFS), meaning no new shares will be issued. Instead, the parent company will reduce its ownership.
Shares and Issue Size
The company plans to offer up to 14.2 crore shares from its existing total of 81.22 crore shares.
Valuation and Price
Though official pricing is not yet available, Hyundai is expected to raise between $2.5 billion and $3 billion. This could value the company at approximately $30 billion.
IPO Goals
The listing will help Hyundai gain visibility in the Indian stock market. It also aims to create liquidity and unlock value from its operations in India. By going public, Hyundai hopes to close its valuation gap with global competitors.
Share Allocation
The IPO will reserve shares as follows:
- 50% for institutional buyers
- 35% for retail investors
- 15% for non-institutional investors
Strong Financials
Hyundai is the second-largest carmaker in India. In FY23, it reported ₹60,000 crore in revenue and ₹4,653 crore in profits. This makes it one of the most profitable non-listed automakers in India.
History and Expansion
Hyundai has been in India for 28 years, known for popular models like the Santro and Creta. The company aims to ramp up production to 1 million units annually by 2025. Its future plans focus on electric vehicles, including building charging stations and battery units.
Key Players Managing the IPO
Several major financial institutions are managing the offering, including Kotak Mahindra Capital, Citigroup, HSBC, JPMorgan India, and Morgan Stanley. KFin Technologies will oversee registration.
This IPO is expected to significantly boost Hyundai’s presence and growth in India, while offering investors a unique opportunity.
