Hyundai Motor India IPO: Hyundai Motor India is going to launch the country’s largest initial public offer (IPO) next week. This IPO will break the record of Life Insurance Corporation of India (LIC). According to the upper price band, the size of Hyundai Motor’s IPO is $3.3 billion or about Rs 27,856 crore. In comparison, LIC had launched an IPO worth $2.7 billion in 2022, which is the largest IPO so far in the history of the country.
Hyundai Motor India is bringing its IPO at a valuation of around $19 billion. Apart from the sale of new shares, there will also be an offer-for-sale (OFS), under which its South Korean parent company Hyundai Motor will sell about 17.5 percent of its stake. This IPO of Hyundai Motor India will open for retail investors and general investors between October 15 and October 17.
However, for anchor investors it will open a day earlier on October 14. Hyundai Motor has fixed the price band of Rs 1,865 to Rs 1,960 per share for its shares.
Which anchor investors can participate in Hyundai Motor India’s mega IPO?
According to sources, Hyundai has held discussions with more than 100 leading global and domestic investors for its anchor book. These include Capital Group Arms, Fidelity Group Arms, Government Pension Fund Global (Norgis Bank Investment Management), BlackRock, T Rowe Price, Baillie Gifford, SBI MF, HDFC MF, ICICI Prudential MF, Nippon India MF, Kotak MF and Axis MF. Big name names included.
When contacted, T Rowe Price and Axis MF declined to comment. Moneycontrol could not get immediate comment from Hyundai Motor Company and other investors.
According to Hyundai Motor India’s Draft Red Herring Prospectus (DRHP), the objective of this IPO is to list the company’s shares on the Indian stock exchange along with the sale of 142,194,700 shares by the promoter. This listing will enhance the brand image of the company and provide a public market for its shares.
Hyundai Motor India is the second largest car company in the country. Only Maruti Suzuki India is ahead of this. Shares of Maruti Suzuki India have been listed in the stock market for a long time. Amidst the talk of Hyundai’s IPO, Maruti Suzuki shares have risen by about 22.4 percent in the last one year. The market cap of the company is currently around Rs 3.94 lakh crore.
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