Hyundai Motor India's IPO: Price Band Set at ₹1,865-₹1,960, Subscription Opens Next Week

Hyundai Motor India is gearing up for its much-anticipated initial public offering (IPO), with a price band likely set between ₹1,865 and ₹1,960 per share. This substantial public offering is poised to raise approximately ₹25,000 crore, showcasing Hyundai's strategic initiative to enhance its presence in the Indian market. The IPO subscription is scheduled to open for institutional investors on October 14, followed by retail and other investors from October 15 to 17, paving the way for a listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on October 22.

This IPO represents a significant milestone for Hyundai Motor India, which is expected to be valued at nearly $19 billion at the upper end of the price band. The offering will not involve a fresh issuance of shares; instead, the South Korean parent company plans to offload up to 17.5% of its stake through an offer for sale (OFS). This strategic move reflects Hyundai's commitment to enhancing liquidity and expanding its market visibility.

As Indian stock markets continue to soar to new heights, Hyundai Motor India's IPO is anticipated to generate strong demand from both retail and institutional investors. The company's robust position in the automotive sector, being the second-largest car manufacturer in India after Maruti Suzuki, further solidifies investor interest. In fiscal year 2024, Hyundai Motor India achieved impressive passenger sales volumes, contributing to the growing anticipation surrounding its IPO.

The company initially filed its draft red herring prospectus (DRHP) in June and swiftly secured the necessary approvals from the Securities and Exchange Board of India (SEBI). By targeting a valuation close to $19 billion, Hyundai aims to not only bolster its visibility but also strengthen its brand image within the domestic market. This IPO is set to surpass previous records, including the notable ₹21,000 crore public offering by the Life Insurance Corporation (LIC) in 2022.

Post-IPO, Hyundai Motor will maintain an 82.5% equity stake in its Indian subsidiary, emphasizing its long-term commitment to the Indian market. The success of this offering will likely position Hyundai as a frontrunner in the competitive auto industry, reflecting the company's resilience and growth potential.

On the Korean stock exchange, Hyundai Motor's share price has seen an impressive gain of over 34% in the past year, significantly outpacing the benchmark KOSPI index, which recorded a 10% increase. This performance signals strong investor confidence in Hyundai Motor's global prospects, further enhancing the appeal of its IPO in the Indian market.

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In summary, Hyundai Motor India's upcoming IPO, with its strategic pricing and significant backing from institutional investors, is expected to create ripples in the stock market. With an impressive track record and a strong market position, Hyundai's public offering is set to attract considerable attention and participation from various investor segments. As the IPO date approaches, anticipation continues to build, highlighting Hyundai's crucial role in shaping the future of the Indian automotive landscape.

Source: MoneyControl