By Justus Scout
The festive season in India has already touched and it has become more thrilling for the primary market as Hyundai Motors prepares for one of the year’s most anticipated initial public offerings (IPOs). The upcoming IPO is coming on the next week on 15th October. This Hyundai Motor IPO has the potential to make waves in the Indian financial landscape.
According to regulatory filings, Hyundai’s public offering is valued at a staggering ₹25,000 crore, positioning it to potentially become India’s largest-ever IPO, surpassing the previous record held by the ₹21,000-crore listing of the Life Insurance Corporation (LIC) in 2022. Here’s everything you need to know:
Key Dates to Remember
The Hyundai Motor IPO will be open for subscription from October 15 (Tuesday) to October 17 (Thursday). For anchor investors, the allocation date is set for October 14 (Monday). According to the Red Herring Prospectus (RHP), the share allotment for the IPO will be finalized on October 18 (Friday), and the company is expected to make its debut on the stock exchanges on October 22 (Tuesday).These dates are crucial for investors looking to participate in this monumental IPO, as they mark significant milestones in the offering process.
Price Band and Lot Size
While the RHP does not specify the price band, reports from Reuters suggest that the price could range between ₹1,865 and ₹1,960 per share. The minimum lot size for investors is set at seven shares, meaning bids must be placed for at least seven shares or in multiples thereof. For retail investors, the minimum investment required is anticipated to be around ₹13,720. This pricing strategy is designed to attract a broad base of investors while ensuring significant capital is raised for the company.
Structure of the IPO
It’s important to note that Hyundai’s upcoming IPO will consist solely of the sale of 14.22 crore existing shares through an offer for sale (OFS), with no new shares being issued. This aspect of the offering means that the capital raised will primarily benefit the existing shareholders rather than the company itself. Observers are already speculating that Hyundai Motor IPO could surpass the LIC listing, which previously held the title for India’s largest public offering.
Book-Running Lead Managers
The IPO is being managed by a consortium of leading financial institutions, known as book-running lead managers. This team includes Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets Pvt Ltd, Kotak Mahindra Capital Company Limited, JP Morgan India, and Morgan Stanley India. Their expertise will be instrumental in navigating the complexities of the IPO process and ensuring a successful launch.
Objectives of the IPO
The primary objective of Hyundai’s IPO is to enhance the company’s standing within India’s rapidly growing automotive sector. The listing aims to bolster Hyundai Motor India’s visibility and brand image in the domestic market. The purpose of the offer is to execute the Offer for Sale… and to realize the advantages of listing the equity shares on the stock exchanges.” This strategic move is expected to position Hyundai as a more formidable player in the automotive industry.
Conclusion
Thus, the upcoming IPO of Hyundai Motors is a significant event for the Indian primary market. With its potential to become the largest IPO in the country’s history, it not only reflects Hyundai’s growth ambitions but also highlights the robust interest in the automotive sector.
