Hyundai Motors India Ltd is gearing up to raise ₹8,315 crore through anchor bidding on 14 October 2024. This will involve issuing 42.42 million shares, marking a significant step in the company’s share market investment efforts. The company’s much-anticipated Initial Public Offering (IPO) will follow, open for public subscription from 15 to 17 October. The price band for the IPO is set between ₹1,866 and ₹1,960 per share.
Promoters to divest shares
This IPO is structured as a pure offer-for-sale. Hyundai’s promoters plan to sell approximately 142.19 million shares, targeting a total of ₹27,870 crore. The share offering is divided into three main categories: the Qualified Institutional Buyers (QIB) segment, which will raise ₹5,543 crore; the non-institutional segment, worth ₹4,158 crore; and the retail portion, consisting of 49.5 million shares, valued at approximately ₹9,701 crore.
Market capitalisation and key dates
Based on the upper price band of ₹1,960 per share, Hyundai Motors India is projected to have a market capitalisation of around ₹1.60 lakh crore. Investors should note the key dates, with the allotment basis being finalised on 18 October 2024. Refunds will be processed, and equity shares will be credited to investors’ accounts by 21 October. Hyundai Motors India will then be officially listed on the stock exchanges on 22 October.
Hyundai’s dominance in the Indian market
Hyundai Motors India is a subsidiary of Hyundai Motor Group, the third-largest car manufacturer globally in terms of passenger vehicle sales in 2023. It has maintained its position as the second-largest car manufacturer in India since 2009. The company is well-known for its focus on innovation and quality, producing a diverse range of 13 models that include sedans, hatchbacks, SUVs, and electric vehicles. Hyundai Motors India also manufactures essential automotive components such as transmissions and engines, which it supplies for both domestic production and sale.
Financial performance
For the quarter ending in June 2024, Hyundai Motors India reported a revenue of ₹17,344 crore, up from ₹16,624 crore in the corresponding period the previous year. Of this, 76% came from the domestic market, with the remaining 24% from exports. Net profit for the quarter stood at ₹1,489.65 crore, compared to ₹1,329.19 crore a year earlier.
Lead managers and future outlookKotak Institutional Equities, Citigroup Global Markets, HSBC Securities and Capital Markets, JP Morgan India, and Morgan Stanley India are serving as the lead managers for the Hyundai Motors IPO. With its strong market position and continued focus on share market investment, Hyundai Motors India’s IPO is expected to generate significant interest from investors, both in India and internationally.
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