From GMP to price band: All about Hyundai India's IPO
Hyundai Motor India will launch its initial public offering (IPO) on October 15, marking a historic moment for the Indian capital market. This IPO is set to be the biggest in India this year, aiming to raise between ₹26,505 crore and ₹27,856 crore. Investors can bid for shares between October 15-17. The company has set a price band of ₹1,865-1,960 per share, valuing the automaker at up to ₹1.6 lakh crore.
Hyundai's IPO: A breakdown of the offer
The IPO consists entirely of an offer for sale of up to 14.2 crore equity shares. The company is not issuing any new shares in this offering. Nearly 50% of the offer is reserved for qualified institutional buyers, 35% is allocated to retail investors, and 15% to non-institutional investors. Additionally, up to 7,78,400 equity shares, worth ₹131-138 crore, are reserved for employees at a significant discount ₹186 per share. The anchor investor bidding will open on October 14.
Hyundai Motor India to list by October 22
Hyundai Motor India intends to complete its IPO allotment by October 18 and list the equity shares on NSE and BSE by October 22. The funds raised will be used for capital expenditure and debt repayment, solidifying the company's financial position. This IPO would make it the country's biggest stock offering this year and Hyundai Motor India the first automaker to go public in two decades since Maruti Suzuki's listing in 2003.
Hyundai's GMP witnesses significant drop
The gray market premium (GMP) for Hyundai Motor India's shares has taken a significant dive in the lead-up to its listing. The GMP, which indicates the expected premium over the issue price, plummeted from around ₹570 in September to just ₹145 at the time of writing. This suggests that the shares may debut with a modest premium of 7.4%, opening at ₹2,105 apiece. However, it's important to remember that GMPs are volatile and can fluctuate rapidly.
Hyundai's performance and market position in India
In FY24, Hyundai Motor India became the second-largest carmaker after Maruti Suzuki in passenger sales volumes. The Indian unit closed FY23 with revenue of ₹60,000 crore and profits of ₹4,653 crore. This performance exceeds all other non-listed car manufacturers in the country. A number of leading financial institutions are acting as the book-running lead managers for the IPO while KFin Technologies is the registrar for this offer.
