Hyundai Motor India IPO likely to open on October 14; check key details ahead of IPO launch

The initial public offering (IPO) of Hyundai Motor India is likely to open for subscription on October 14. According to a CNBC report, the price band for the IPO could be announced in the coming week.

On September 24, the Securities Exchange Board of India (SEBI) gave a green signal to Hyundai Motor India's IPO. The automotive company’s public issue consists of an offer-for-sale (OFS) of 14.22 crore shares, each with a face value of ₹10.

Hyundai Motor India’s IPO is likely to open between October 14 and 16, 2024, but the dates are subject to change due to recent geopolitical tensions. The expected issue size is ₹25,000 crore and will have a face value of ₹10 per share, while around 35% of the issue size will be reserved for retail investors.

Experts estimate that the expected IPO price band could be around ₹1,800 per share. However, the company will confirm the final price band and lot size in the coming weeks.

Hyundai Motor India IPO objective

Since the IPO is completely offer-for-sale (OFS), the company will not receive any of the offer's proceeds. The company’s promoters will receive all offer proceeds after deducting offer-related costs and applicable taxes.

The public issue marks a crucial step for Hyundai Motor India as it aims to expand its footprint in the competitive Indian market and enhance shareholder value. The company, in its DRHP, mentioned that the listing of its equity shares will enhance its visibility and brand image. Further, the IPO will also provide liquidity and a public market for the shares, Hyundai added.

Reports suggest the potential issue size of Hyundai Motor India IPO could be around ₹25,000 crore (approximately $3 billion). With the launch of its public issue, Hyundai Motor IPO will become the biggest public issue in India, followed by the Life Insurance Corporation (LIC) of India, which raised around $2.45 billion.

Hyundai Motor India IPO lead manager

According to DRHP, Kotak Mahindra Capital Company, Citigroup Global Markets India Private Limited, HSBC Securities & Capital Markets Pvt Ltd, J.P. Morgan India Private Limited, and Morgan Stanley India Company Pvt Ltd are the book-running lead managers for the IPO. The issue's registrar is Kfin Technologies Limited.

The Hyundai Motor India IPO is also significant as it is the first such share sale in over two decades after Japanese automaker Maruti Suzuki's listing in 2003.

About Hyundai Motor India

The Korean automaker has been operating in India since 1996 and currently has a personal vehicle portfolio comprising 13 models. Based on passenger vehicle sales, the company is the third-largest car original equipment manufacturer ("OEM") in the world.