Hyundai Motor India IPO Opens on October 15: 10 Key Details to Know Before Subscribing

Hyundai Motor India, the country's second-largest original equipment manufacturer (OEM) and exporter of passenger vehicles is set to launch its highly anticipated initial public offering (IPO) on October 15. The IPO will close on October 17, and through this offering, the company plans to raise nearly ₹27,870 crore. Below are the 10 important details to know before subscribing to Hyundai Motor India’s IPO:

1. Price Band and Lot Size

Hyundai has set a price band of ₹1,865 to ₹1,960 per equity share for the public offer. Investors can bid for one lot comprising seven shares, with multiples of seven allowed thereafter.

2. Grey Market Premium (GMP)

As per market observers, the current grey market premium (GMP) for Hyundai Motor India stands at ₹147, reflecting a premium of 7.5% over the issue price. This provides an indication of expected listing gains.

3. Offer-for-Sale Component

The IPO is entirely an offer-for-sale (OFS), with the parent company, Hyundai Motor Company, selling 14.2 crore equity shares. There is no fresh issue component in the offering, and all proceeds will go to the promoter.

4. Anchor Investors

Hyundai will open the IPO for anchor investors on October 14, a day before the general subscription period begins on October 15.

5. Investor Allocation

50% of the IPO is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 35% for retail investors.

6. Market Position

Hyundai Motor India holds the position as the second-largest OEM and the second-largest exporter of passenger vehicles in the country, boasting a domestic market share of 14.6%.

7. Sales Performance

In September 2024, Hyundai sold 64,201 units, marking a 10% year-on-year decline. However, the company’s cumulative sales for 2024 so far are 5.77 lakh units, which remains flat compared to last year.

8. Historic IPO Event

This IPO is set to be a landmark event, as Hyundai will become the first Indian car manufacturer to go public in two decades, following Maruti Suzuki's IPO in 2003. This offering comes at a time when Indian markets are hitting record highs.

9. Lead Managers

The Hyundai IPO is being managed by a group of merchant bankers, including Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India, and Morgan Stanley India Company. KFin Technologies has been appointed as the registrar.

10. Allotment and Listing Timeline

The basis of allotment is expected to be finalized by October 18. Successful applicants will have their shares credited to demat accounts by October 21, and the trading of Hyundai shares on the NSE and BSE will commence on October 22.

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This IPO presents a significant opportunity for investors looking to tap into India's fast-growing automotive market. Given Hyundai's strong market presence and recent industry dynamics, the IPO has garnered substantial attention.

[Disclaimer: This article is for informational purposes only. Investors are advised to conduct thorough research or consult with a financial advisor before making any investment decisions.]