Hyundai Motor IPO opens on October 15: All you need to know

Hyundai Motor India aims to raise Rs 27,855 crore, making it the largest IPO in the history of the Indian stock market. 

In Short

• Shares priced between Rs 1,865 and Rs 1,960 each
• IPO to raise Rs 27,855 crore through offer for sale
• Shares to list on October 22 on BSE and NSE

The initial public offering (IPO) of Hyundai Motor India, the country’s second-largest carmaker, is set to launch India’s biggest on Tuesday, October 15. Hyundai Motor India aims to raise Rs 27,855 crore, making it the largest IPO in the history of the Indian stock market. The subscription for the IPO will close on Thursday, October 17.

The company is offering its shares in the price range of Rs 1,865-1,960 each. Investors can apply for a minimum of seven equity shares, and multiples thereof. The minimum amount of investment required by retail investors is Rs 13,720.

The IPO will be an offer for sale (OFS) by Hyundai Motor Company, its South Korean parent, which plans to offload up to 14.21 crore equity shares. At the upper price range of Rs 1,960 per share,

IPO allocation details

The Hyundai Motor India IPO includes a reservation of 7.78 lakh shares for eligible employees, who will receive a discount of Rs 186 per share. The IPO has allocated 50% of the net offer to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and the remaining 35% for retail investors.

Allotment and listing

Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, HSBC Securities & Capital Markets, and Morgan Stanley India Company are the lead managers for the IPO. The registrar for the issue is Kfin Technologies.

The allotment of shares for Hyundai Motor IPO is anticipated to be finalised on Friday, October 18, 2024. The shares are likely to be listed on both the BSE and NSE, with a provisional listing date of Tuesday, October 22.

Hyundai Motor India, established in May 1996 and headquartered in Chennai, is part of the Hyundai Motor Group. Hyundai Motor Group is the world’s third-largest auto manufacturer in terms of passenger vehicle sales. The company’s Indian subsidiary is involved in the production and sale of various vehicles, including sedans, hatchbacks, SUVs, and electric vehicles (EVs). Additionally, it manufactures key parts such as engines and transmissions.

The Indian arm of the company will not receive any direct proceeds from the IPO, as the funds raised will go to its parent company in South Korea. Hyundai Motor India’s shares will give the company a market valuation of Rs 1.6 lakh crore.

Company operations and reach

Hyundai Motor India has a strong presence in India with 1,366 sales points and 1,550 service locations spread across the country. The company has sold nearly 12 million vehicles in India and exported cars to markets like Africa, the Middle East, Bangladesh, Nepal, Bhutan, and Sri Lanka. It operates through 363 dealer companies to distribute and sell vehicles in India.

Popular Hyundai models in India include the Grand i10 NIOS, i20, i20 N Line, AURA, Elantra, Venue, Verna, Creta, Alcazar, Tucson, and the all-electric SUV Ioniq 5.

Financial performance

Hyundai Motor India posted a net profit of Rs 1,489.65 crore for the quarter ended June 30, 2024, with revenues amounting to Rs 17,567.98 crore. For the financial year ending March 31, 2024, the company reported a net profit of Rs 6,060.04 crore and revenues of Rs 71,302.33 crore.

Hyundai Motor India’s IPO is generating significant interest due to the company’s solid performance and position in the Indian automobile market, as well as the record-breaking size of the offering.