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The IPO of Hyundai Motor India, the Indian unit of the South Korean auto company, has opened for subscription from today. Through this IPO, it will raise ₹27,870 crores by selling about 14.2 crore shares. This will be completely an Offer-for-Sale i.e. OFS. The company's promoters will sell 14.2 crore shares in OFS. On October 14, a day before the subscription opens for retail investors, the company has raised ₹8,315.3 crores from anchor investors.
The list of anchor investors includes big names like Government of Singapore, New World Fund Inc, Monetary Authority of Singapore, Fidelity, Government Pension Fund Global and American Funds Insurance Series.
Hyundai Motor India is the second largest car manufacturing company in the country. Apart from this, it is also the second largest exporter of passenger vehicles. This company has a share of 14.6% in India's auto market. This is the first time since 2003 that an IPO of an auto company has been launched. Before this, the last IPO was launched by Maruti Suzuki. The special thing is that this IPO has come at a time when the Indian equity market is almost close to record high levels. Let's know the details of this IPO further. Price band - The company has fixed a price band of ₹ 1,865 - ₹ 1,960 per equity share. Investors can bid for a minimum of 7 shares (one lot) and in multiples of 7 thereafter. About 50% of the IPO has been reserved for institutional investors (QIB), 15% for non-institutional investors (NII) and 35% for retail investors. Gray Market Price - This IPO has not received much response in the gray market yet. It is currently trading at a premium of ₹ 40 per share in the gray market. This premium has seen a decline in the last few days. The premium of ₹ 40 per share is 7.5% higher than the issue price. Merchant Bankers and Registrars - Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India and Morgan Stanley India Company are the merchant bankers handling the IPO, while KFin Technologies is the registrar. Allotment and Listing - The company may finalize the allotment by October 18, 2024. After this, the equity shares will be transferred to the demat accounts of successful investors by 21 October 2024. The company's shares will be listed on NSE and BSE on 22 October. Company's sales - Hyundai sold 64,201 units in the month of September, which is 10% less on a year-on-year basis. Till now in 2024, the company has sold 5.77 lakh units, which is flat compared to last year.
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