Hyundai Motor India IPO: Auto Giant To Raise Rs 8,315 Crore From Anchor Investors; Check Dates & More

Hyundai Motors India Ltd is gearing up for its much-anticipated Initial Public Offering (IPO), aiming to raise around Rs 27,870 crore through a pure offer-for-sale structure. The offering will see the promoters divesting a significant stake, with 142.19 million shares set to go on sale. The IPO will open for subscription between October 15 and October 17, with a price band ranging from Rs 1,866 to Rs 1,960 per share.

The company plans to raise Rs 8,315 crore from anchor investors on October 14, prior to the public offering. In this IPO, the Qualified Institutional Buyers (QIB) portion is expected to amount to Rs 5,543 crore, the non-institutional segment will account for Rs 4,158 crore, and the retail portion will consist of 49.5 million shares, valued at Rs 9,701 crore. Based on the upper price band, Hyundai Motors India's market capitalisation is estimated to reach approximately Rs 1.60 lakh crore.

Key Timelines for Hyundai IPO

After the subscription period closes on October 17, the finalisation of the basis of allotment is scheduled for October 18. Refunds to investors will be initiated soon after, followed by the crediting of equity shares to investors' demat accounts on October 21. Hyundai Motors India will then make its debut on the stock exchanges on October 22, marking a major milestone for the automaker in India's equity markets.

Hyundai Motors India

As a subsidiary of the Hyundai Motor Group, the world's third-largest automaker by passenger vehicle sales in 2023, Hyundai Motors India holds a strong position in the Indian market. Since 2009, it has maintained its status as the second-largest passenger vehicle manufacturer in the country, offering a diverse portfolio of 13 models, including popular sedans, hatchbacks, SUVs, and electric vehicles. The company manufactures key components such as transmissions and engines, both for its own vehicles and for sale to other automakers.

For the quarter ending June 2024, Hyundai Motors India reported impressive financial results. The company's total revenue for the quarter stood at Rs 17,344 crore, up from Rs 16,624 crore in the same period the previous year. Of the total revenue, 76% came from the domestic market, while exports contributed the remaining 24%. Hyundai Motors India's net profit for the quarter increased to Rs 1,489.65 crore, compared to Rs 1,329.19 crore in the corresponding period the previous year.

The book-running lead managers to Hyundai Motors India's IPO include some of the biggest names in the financial world. Kotak Institutional Equities, Citigroup Global Markets, HSBC Securities and Capital Markets, JP Morgan India, and Morgan Stanley India have been appointed to manage the issue.