Hyundai India IPO: Price band set at Rs 1,865 - 1,960, issue to open on Oct 15

India’s second largest car maker Hyundai Motor India Ltd on Wednesday fixed the price band of its initial public offering in the range of Rs 1,865 – 1,960. At this price, the company is set to raise Rs 27,870.16 crore ($3.42 billion) at the upper end, or Rs 26,519.31 crore at the lower end.

The IPO will be the largest in the country to date, surpassing Life Insurance Corp’s Rs 21,000-crore IPO two years ago. This will also be the first IPO by a carmaker in India in the two decades since Maruti Suzuki's listing in 2003.

None of the proceeds of the issue will come to the Indian unit. The South Korean parent company Hyundai Motor Company plans to dilute up to 17.5% stake in its wholly-owned India unit through the IPO. It will sell up to 142.19 million equity shares of Rs 10 face value.

Anchor investors can bid for the shares on October 14, while the issue will open for subscription to the public on October 15, and close on October 17.

Up to half of the shares will be offered to Qualified Institutional Buyers, while 15% will be set aside for non-institutional buyers, and up to 35% for retail buyers. The shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Kotak Mahindra, Citi Group, HSBC Securities, JP Morgan and Morgan Stanley are the lead book-running managers for the IPO.

India, the third largest passenger vehicle market in the world, is also the third largest market for the South Korean company and accounts for around 14% of its global sales.

Hyundai entered India in 1996 and introduced its first car, Santro, in 1998. It has invested around Rs 29,741 crore in India as of December end in tangible fixed assets and capital work in progress. The company has cumulatively sold around 12 million passenger vehicles, including exports.

In 2023-24, Hyundai India sold 6,14,721 vehicles in the domestic market, representing a growth of 8% on a year-on-year basis. Hyundai India's exports also rose 6.7% to 1,63,155 vehicles during the year. It has a market share of around 15% in the Indian passenger vehicle market.

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