Hyundai Motor India’s highly anticipated Initial Public Offering (IPO), worth ₹27,870 crore, is open for public bidding from October 15 to October 17, 2024.
This IPO sets a new record as the largest in India’s history, surpassing the ₹21,000 crore IPO of Life Insurance Corporation (LIC).
The company’s shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Hyundai India IPO: Price Band and Offer Structure
The IPO price band is set between ₹1,865 to ₹1,960 per share, with 14.21 crore shares offered for sale.
Notably, this IPO is entirely an Offer for Sale (OFS), meaning Hyundai Motor Company will sell 17.5% of its stake, reducing its ownership from 100% to 82.5%.
No new shares will be issued through this IPO, and the company’s valuation is estimated at $19 billion.
IPO Bidding and Allotment Details
The IPO opens for anchor investors on October 14, a day before it becomes available for retail and institutional investors. The offering is divided among investor categories:
50% reserved for Qualified Institutional Buyers (QIBs)
35% for Retail Individual Investors (RIIs)
15% for Non-Institutional Investors (NIIs)
Retail investors must bid for a minimum of 7 shares, with the minimum investment starting at ₹13,720. The maximum they can invest is ₹1,92,080.
Grey Market Premium (GMP) and Pre-IPO Success
Hyundai India shares are currently trading at a ₹65 premium in the grey market, suggesting an expected listing price of ₹2,025.
This implies a potential 3.32% gain at the time of listing. However, grey market trends are unofficial and may not accurately reflect the actual stock performance on listing day.
In the pre-IPO anchor round, Hyundai raised ₹8,315 crore by allotting 4.24 crore shares. These shares are subject to a lock-in period:
50% of the shares are locked until November 17, 2024
The remaining 50% will stay locked until January 16, 2025
Important Dates for Hyundai India IPO
Allotment Date: October 18, 2024
Refund Date (for unsuccessful investors): October 19, 2024
Demat Transfer for Allotted Shares: October 21, 2024
Listing Date: October 22, 2024
IPO Management and Registrar
The IPO is managed by top financial institutions, including Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets, HSBC Securities, and Morgan Stanley India.
KFin Technologies has been appointed as the official registrar to handle the allotment and investor communication process.
