Hyundai to launch India's largest-ever IPO of ₹27,870 crore next week; aims ₹1.6 lakh crore valuation

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South Korean automaker's Indian limb Hyundai Motor India Ltd volition motorboat the largest archetypal nationalist offering (IPO) successful the country's past adjacent week, aiming to rise ₹27,870 crore (about $3.3 billion).

This IPO volition surpass the ₹21,000 crore offering by Life Insurance Corporation of India (LIC) successful May 2022.

Apart from these two, the biggest archetypal share-sales successful India see One97 Communications (Paytm), which mobilised ₹18,300 crore successful November 2021, followed by Coal India's ₹15,199 crore successful October 2010, Reliance Power's ₹11,563 crore successful January 2008, and General Insurance Corporation of India's ₹11,176 crore successful October 2017.

Hyundai Motor India Ltd (HMIL) has acceptable a terms set of ₹1,865 to ₹1,960 per stock for the offering, valuing the automaker astatine ₹1.6 lakh crore (about $19 billion).

The offering volition unfastened for nationalist subscription connected October 15 and reason connected October 17. Anchor investors volition bid connected October 14.

With this monolithic IPO, Hyundai Motor India seeks to physique connected its increasing marketplace beingness and capitalise connected beardown request for its vehicles successful the country. The offering is expected to gully important capitalist interest.

The company's projected IPO is wholly an Offer-for-Sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with nary caller contented component.

This improvement marks a important milestone for the Indian industry, arsenic it is the archetypal first stock merchantability of an automaker successful implicit 2 decades, pursuing Japanese carmaker Maruti Suzuki's listing successful 2003.

The South Korean genitor is diluting immoderate of the involvement done the OFS route. Since the nationalist contented is wholly an OFS, Hyundai Motor India Ltd, the 2nd largest carmaker successful India aft Maruti Suzuki India, volition not person immoderate proceeds from the IPO.

HMIL expects that the listing of the equity shares volition heighten its visibility and marque representation and supply liquidity and a nationalist marketplace for the shares.

At the precocious extremity of the terms band, the IPO size has been pegged astatine Rs 27,870 crore HMIL commenced operations successful India successful 1996 and is selling 13 models crossed segments.

The IPO motorboat comes astatine a clip erstwhile the superior marketplace is experiencing beardown involvement from some issuers and investors crossed assorted sectors.

Moreover, 63 companies person already mobilised astir ₹64,000 crore collectively via mainboard, marking a 29% summation from ₹49,436 crore collected by 57 firms done the way successful the full 2023.

Published - October 09, 2024 04:43 p.m. IST