Hyundai Motor India to Launch Record IPO on October 15

Hyundai Motor India is preparing for the largest initial public offering (IPO) in India’s history, set to launch on Tuesday, October 15. This IPO will allow investors to buy shares priced between Rs 1,865 and Rs 1,960 each, with a minimum purchase of seven shares.

Key Details

• IPO Timeline: The bidding for the IPO will close on Thursday, October 17.
• Share Offer: Hyundai Motor Company, the South Korean parent company, is selling up to 14.22 crore equity shares, aiming to raise about Rs 27,855 crore.

Company Background

Hyundai Motor India was established in May 1996 and is based in Chennai. It is part of the Hyundai Motor Group, the third-largest automotive manufacturer globally in terms of passenger vehicle sales. In addition to vehicles, Hyundai also produces components like transmissions and engines.

Financial Insights

Hyundai Motor India will not receive any funds from the IPO; all proceeds will go to its parent company. Following the IPO, the company's market capitalization is expected to reach Rs 1.6 lakh crore. For the quarter ending June 30, 2024, Hyundai reported a net profit of Rs 1,489.65 crore and revenues of Rs 17,567.98 crore.

Sales and Operations

Hyundai operates a wide network in India, with 1,366 sales points and 1,550 service centers. The company has sold nearly 12 million passenger vehicles in India and exports to various countries including Africa and the Middle East.

Vehicle Range

Hyundai offers a variety of four-wheeled passenger vehicles, including sedans, hatchbacks, SUVs, and electric models. Some popular models include the Grand i10 NIOS, i20, Venue, Creta, and the all-electric Ioniq 5.

Employee and Investor Allocations

The IPO includes a reservation of 7,78,400 shares for eligible employees at a discount of Rs 186 per share. The allocation for investors is as follows:

• 50% for qualified institutional bidders (QIBs)
• 15% for non-institutional investors (NIIs)
• 35% for retail investors

Lead Managers and Listing

The book-running lead managers for the IPO are Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets, HSBC, and Morgan Stanley. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with a tentative listing date of October 22, 2024.

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This IPO represents a significant milestone for Hyundai Motor India and the Indian stock market as a whole.