The mother of Indian IPO is coming up soon! South Korea-based Hyundai has announced its initial public offer (IPO) of Rs 25,000 crore. The auto giant filed its draft prospectus for the IPO with market watchdog Sebi on June 18. This will be the largest market in the Indian market's history, outrunning LIC which currently holds that title.
Here are the 10 key points of the Hyundai IPO:
1. The IPO will be entirely offered for sale under which Hyundai will be offloading up to 142,194,700 equity shares having a face value of Rs 10 each. Accordingly, the entire proceeds of the IPO will be used by the promoter-selling shareholders.
2. Of the total OFS, not more than 71,097,350 Equity Shares will be kept reserved for qualified institutional buyers, while about 21,329,205 Equity Shares will be allocated to non-institutional investors, and lastly 49,768,145 Equity Shares will be kept for retail individual investors.
3. Book-running lead managers of the IPO are companies like Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), J.P. and Morgan India, Morgan Stanley India. While KFin Technologies is the registrar of the IPO.
4. Upon listing, Hyundai will compete against automobile behemoths such as Maruti Suzuki, Tata Motors, and Mahindra & Mahindra.
5. Hyundai plans to leverage its deep understanding of consumer preferences to successfully expand its passenger vehicle portfolio. Also, Hyundai has a premiumisation strategy, where it focuses on selling trims that have a higher average selling price ("ASP") for the respective passenger vehicles. Further, Hyundai intends to continue to deepen its localised supplier network by adopting a localisation strategy for the Talegaon Manufacturing Plant in India.
6. Hyundai is also seeking to calibrate its EV strategy and plan its EV timelines in line with market demands in India, by launching the appropriate EV models within each price segment. It is also looking to localise the EV supply chain through collaboration with both local and global EV power electronic vendors.
7. Hyundai's total net worth is Rs 197,779.17 million as of December 2023. Profit stood at Rs 43,828.71 million, and revenue was at Rs 521,579.11 million.
8. Hyundai's IPO will become the biggest ever in the Indian market. It is also the company's first listing outside South Korea.
9. As of now, in the Indian market, the biggest IPO title is held by the country's largest life insurer LIC India which launched its nearly Rs 21,000 crore public offer in 2022. Other biggest IPOs in the primary market also include the Rs 18,000 crore issue by fintech giant Paytm and the Rs 15,200 crore issue by the Maharatna PSU mining giant Coal India.
10. So far on BSE, a total of 67 IPOs have entered the primary market. Of the total, 31 IPOs are from the mainboard, and 36 IPOs from the SME segment.
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