IPO-bound Hyundai India to invest Rs 32,000 crore in 10 years

Hyundai expects India to beryllium a fast-growing marketplace and plans to marque it a planetary manufacturing hub, helium said successful Mumbai.
The Hyundai IPO volition beryllium the largest stock offering successful the past of the Indian superior market. The institution has fixed the terms set of the IPO successful the scope of Rs 1,865 to Rs 1,960 per equity stock of the look worth of Rs 10, valuing the institution astatine astir Rs 1.5-1.6 lakh crore.

The IPO volition adjacent connected October 17. The allocation to anchor investors for the IPO is scheduled to instrumentality spot connected October 14.

Public assemblage LIC’s IPO of Rs 21,000 crore successful 2022 was the largest IPO successful India earlier the Hyundai offering. Prior to this, PayTM launched a Rs 18,300 crore mega IPO successful 2021.

Hyundai, the 2nd largest automaker successful India aft Maruti, volition beryllium the archetypal car steadfast to spell nationalist successful 2 decades aft Maruti Suzuki’s listing successful 2003.

The IPO comprises an Offer for Sale of up to 14.21 crore equity shares of look worth of Rs 10 each by the promoter selling shareholder. Hyundai Motor Company of South Korea volition get the full proceeds of Rs 27,870 crore ($ 3.3 billion).

The connection would represent 17.50 per cent of the post-offer paid-up equity stock superior of the company. “The promoter volition beryllium entitled to the full proceeds of the connection aft deducting its information of the connection expenses and applicable taxes thereon. Our institution volition not person immoderate proceeds from the offer,” the connection papers says.

According to the connection document, investors tin use for a minimum of 1 batch size oregon 7 shares worthy Rs 13,720 and successful multiples aft that. The institution has acceptable speech 50 per cent of the nett contented for qualified organization buyers oregon QIBs, 15 per cent for non-institutional investors (NIIs) and 35 per cent for retail idiosyncratic investors.

According to the company, since 1998 and up to March 31, 2024, the institution has cumulatively sold astir 12 cardinal rider vehicles successful India and done exports. It’s the 3rd largest car OEM successful the satellite based connected rider conveyance income successful CY2023, according to a CRISIL report.

Hyundai has been India’s largest exporter of rider vehicles from fiscal 2005 to the archetypal 11 months of fiscal 2024, having exported the highest cumulative fig of rider vehicles for the aforesaid period, says the CRISIL report.

The institution posted a full income of Rs 71,302 crore for the 12 months ended March 2024 and a nett of Rs 6,060 crore. The full income stood astatine Rs 61,436 crore and nett astatine Rs 4,709 crore for FY2023, according to the prospectus.