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Hyundai Motor India's IPO for 142 million shares, targeting a ₹25,000 crore valuation. The IPO set for October could become India's largest.
The Securities and Exchange Board of India (SEBI) has officially given the green light to Hyundai Motor India Ltd's initial public offering (IPO). With this approval, the South Korean automotive giant is all set to make a significant mark in the Indian stock market. The IPO will consist of 142,194,700 equity shares, each with a face value of ₹10.
Hyundai Motor India’s IPO is a book-built issue, valued at ₹27,870.16 crores, making it one of the largest IPOs in India's history. The IPO will open for subscription from October 15, 2024, to October 17, 2024. The allotment will be finalized by October 18, 2024, with shares being credited to successful applicants’ Demat accounts by October 21, 2024, and listing on the NSE and BSE set for October 22, 2024.
The IPO is priced within a band of ₹1865 to ₹1960 per share, and retail investors can apply for a minimum of 7 shares. The minimum investment amount for retail participants is ₹13,720. For high-net-worth investors (HNIs), the investment thresholds differ—small HNIs can bid for a minimum of 15 lots (105 shares), while large HNIs can apply for at least 73 lots (511 shares).
The entire issue is an offer for sale (OFS) by Hyundai Motor Company, its parent company, representing 17.50% of Hyundai Motor India's total equity share capital post-IPO. Hyundai Motor Company will use this opportunity to monetize a portion of its holdings while retaining control of its Indian operations.
There’s also an employee reservation portion with a special discount of ₹186 per share, allowing employees to buy shares at a reduced price.
On October 14, 2024, Hyundai Motor raised ₹8,315.28 crore from anchor investors, who have committed to purchasing 42,424,890 shares. Half of these shares will have a 30-day lock-in period, and the rest will be locked in for 90 days.
This IPO marks a transformative phase for Hyundai Motor India. The proceeds from the sale will bolster the company's Indian market presence and operations. Hyundai Motor India currently holds the second-largest market share in the Indian passenger vehicle sector, just behind Maruti Suzuki. As Hyundai enters India’s capital markets, it is expected to significantly boost its visibility and financial strength.
Investors and analysts are keeping a close watch on the upcoming listing, which could further solidify Hyundai's position in India's dynamic automotive landscape.
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